payment processor – Dispatches From The Front

Every business that accepts debit and credit card transactions needs the ability to facilitate payments. The world of payment processing can be an arcane and confusing place to those unfamiliar, though. One common source of confusion is the difference between payment gateways and payment processors and which a business might need. This guide will demystify these related, yet distinct, components of credit card processing and help you determine which is right for your business.

What is a payment gateway?

A payment gateway is a software tool that connects a customer’s payment data to a business’s merchant account by way of a payment processor. It can be used to facilitate both online and in-person transactions. The payment gateway is the digital tool that encrypts transaction data to ensure it is secure. It also communicates the success or failure of the transaction.

So you want to run an online store. Congratulations — and best of luck to you.

One of the more important things you need to do is figure out how you want your shoppers to pay for the products they buy on your site. In short, you need to find a payment processor, the company responsible for moving the money from your customer’s bank account or credit card to your business account.

Many companies are out there vying for your business.

Choosing the best payment processor for your business is an important choice. Many sellers gravitate toward the lowest bidder. Keep overhead low and the profits will roll right in, right?

Not necessarily.

When it comes to choosing a payment processor, focusing on the lowest bidder can be a big mistake — but only one of several mistakes. When choosing a payment processor, there are seven mistakes you should do your best to avoid:

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Is a Payment Gateway or Payment Processor Best for You? | businessnewsdaily.com

7 Mistakes to Avoid When Choosing a Payment Processor | Small Biz Trends