A payment processor is the company which is appointed by the merchant to handle the transactions of credit card for merchant acquiring banks. This company is accountable for handling the routine transactions from the payment gateway to the debit/credit card company and coordinates the settlement payment of merchant funds. While the payment processing is the service and process that automates the payment transactions amid the merchant and shopper. It is generally a 3rd party service which is actually a system of various computer processes which generates, verifies, declines and accepts the credit card transactions on behalf of the merchant by means of internet connections. The processor companies are generally broken down into 2 types:
The back end andThe front end
Factors to be given consideration while selecting a processor:
There are number of factors which one should consider while appointing any processor company for your business. Selecting a processor that is not capable of meeting the requirements of your business can cost you dollars! Here are some of the key points which will help you while you opt for such processor:
Security: Credit card fraud has increased in abundance on the internet; hence it is very significant to select a processor that has far-reaching anti-fraud solutions in hand. Discover more for processing security.Merchant Account Services: Selecting a processor company which renders merchant account services is affordable and much effective – relying on the processor you can also save on the ongoing fees and application.Rates and Fees: Look out for ongoing monthly and application fees – along with the rate per transaction, as these can end up being very expensive!Reporting: All desire having access to precise information on monetary information which is related to their business in real time.
Most of the popular processors of credit card payments render these services as a part of their normal package while many others might render these services as additional features. Though it might appear affordable to opt for a payment processor that does not charge for the mentioned services, yet one might find that they make up for these services with expensive transaction fees. Ascertain the needs of your business and then shop around to locate the best suited processor.
Whenever you select a processor, ensure that it utilizes Secure Socket Layers (SSL) for safe and secure transactions. Security is the major concern when we speak of credit card payment processing. There are four main entities involved in this process and these are third party processors, member banks, internet payment service providers and independent sales organizations. Consumers who visit your website will want to be assured if their information and details will be kept safe and secure and that the information or the consumers are not at any risk of credit card fraud or identity theft.