Payment processing just got easier for you and your customers – News Couple
ERP

Payment processing just got easier for you and your customers


From the customer’s point of view, making payments by credit card is quite simple; It’s easier than paying with cash or writing a check. But dig into the details, and you’ll find that a complex chain of interactions between different entities operates. Credit cards have been around since the mid-20th century, and every year they become more complex, convenient, and secure. Payment processing has also evolved over the years.

To better understand how credit card processing works, you need to understand the terms used and their importance. What is the difference between payment processing, payment gateway, and payment facilitator? Sometimes the terms can be confusing.

Credit Card Journey

When customers initiate credit card transactions on your website or at your point of sale (point of sale), multiple resources collaborate to process the transaction and transfer funds from the customer’s account to the merchant’s account.

Payment Processor vs Payment Gateway: Understanding the Difference

If you as a merchant are considering accepting payments online, now is the time to get started. More and more consumers and businesses run the majority of their businesses online, and this trend is sure to continue.

If you choose to accept payments online, you will need a payment processor and payment gateway. The two are often talked about interchangeably, but they are actually quite different.

Payment processor

The payment processor manages the credit card transaction process by mediating between the merchant and the respective financial institutions. The processor authorizes the transactions and makes it easier for merchants to get the funds on time by ensuring that the funds are transferred. In addition, the payment processor will also provide payment terminal equipment that is used to accept credit cards.

The best payment processors will support credit card payments and a variety of other payment methods. via Improve exchangePayment processors can reduce the cost of accepting a credit card.

Payment Gateway

On the other hand, a payment gateway is the technology that a merchant uses to accept payments from customers. The term includes physical card readers used in retail stores as well as payment processing gateways used in online stores. Payment gateways can now also accept payments over the phone using QR codes.

The payment gateway maintains a secure connection between the merchant’s e-commerce website and the payment processor. It encrypts credit card data, validates it and guarantees delivery.

So, in short, the payment processor is the service provider that speeds up the transaction; Payment Gateway is the secure communication channel used to send payments.

For purchases made at a physical location, a POS device provided by the payment processor is all that is needed to validate the card. If the card is not present, as with transactions over the phone or by email, the payment gateway will authenticate the card before sending its details securely to the processor.

Payment processors often collect all the services a merchant needs to accept payments, including equipment and support. A payment processor often has a proprietary gateway that enables it to control transactions from start to finish.

merchant accounts

Merchant accounts are bank accounts used to accept credit card payments. You can open a merchant account with your bank, or your payment processor can provide it with the other services it offers. Sometimes different collection methods require individual merchant accounts. Make sure to work with a payment processor that supports all the payment channels you choose.

How to start accepting payments online

Of course, you need an e-commerce platform (your website or online store). You will also need to partner with a payment processor who can provide a payment gateway and help you set up your merchant account.

Versapay It is a total merchant services provider. Our team makes it easy to get you set up and running by providing everything you need to start accepting online payments right away. At Versapay, we pride ourselves on security, fast delivery, and customer support. We can help you handle all of your payment processing needs such as invoicing, e-commerce, card no-nos, and POS. And all of this will be seamlessly integrated with your ERP solution.

Make the transition to electronic payments easy and give customers the payment options they want.

If you would like to learn more about our approach, Call Versapay, and let’s talk about setting up better payment methods for you and your customers.

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by Versapay, www.versapay.com



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