It is essential to conduct thorough research and evaluation prior to selecting an online payment processor. The right payment processor should support the payment methods that your customers use, and provide options to safeguard against fraud and chargebacks. Our editors have researched, rated and compared several top-performing products in relation to their capabilities, coverage options and customer experience. They also took into consideration cost as well as customizability, among other aspects.

To process credit card transactions companies require a merchant account, a payment gateway and a payment processor. A payment processor is a firm that handles all the transaction details, moves the transaction through the processing network and works with the bank to ensure you get paid for your goods or services.

The procedure begins when a customer purchases something from your business site with a credit or debit card. The buyer enters their payment information in the form available on your site, and securely transmits the data to the payment processor through an online payment gateway. The processor then contacts the card issuer in order to determine whether the cardholder has enough credit available to pay for the transaction. The processor will send an email to your site and to the gateway after the issuing bank has approved or denied the transaction. The message can be simple, „Your payment was approved,“ or more detailed, „Your payment was declined.“

The processor sends information about transactions from the day to the card network, and transfers funds from card issuers to the merchant bank. After a short period of settlement the acquiring bank deposits those funds into your merchant account. The entire process typically takes only a few seconds.

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