An online payment processor is an online service that acts as a financial intermediary between your company’s website and customers. This service allows your company to accept credit or debit card from customers, and then deposit the funds into your bank account. If you’re selling digital goods or accepting donations, registrations for events, or offering subscription-based services, having the appropriate payment processing system in place will help you to grow your customer base and increase sales.
Your customers will input their payment information in a form, usually on your website or mobile application. The form will ask for your name, email the card number, CVV and expiration date. The payment processor will verify that the user is able to make the purchase, and then authorize the transaction. If the transaction cannot be authorized, the buyer will be notified via email that informs them of the reason and offers them the chance to try again or choose an alternative payment method.
When choosing an online payment processor, make sure you select one that is compatible to your current point-of-sale (POS) system. You can also look for an option that you could integrate directly into your website. Check if the provider offers a wide range of payment options, such as alternative credit cards, QR codes, and PayPal. It is also a good idea to choose a provider that will support your company’s international operations, as it will help you expand into new markets and boost the conversion rate across all of your global customer bases.
