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What is a payment processor?

Payment processors are the financial institutions that work in the background to provide all of the payment processing services used by an online merchant. These companies usually have partnerships with other companies that deal directly with consumers or traders. The payment processor connects to both the merchant’s account and the payment gateway, quickly exchanging information, keeping it secure and almost instant to the end user. Simply put, the payment processor takes the transaction information from the payment gateway, validates it, executes it, and then deposits the funds into the merchant’s account. It also informs the payment gateway for online gaming if the transaction was successful. As we mentioned earlier, choosing your payment processor is not a decision that rests solely with the person who will be in charge of finances. A payment processor is essential to ensure a good conversion rate. So this is a decision you don’t want to take lightly.

A quick list of the main payment processors

There is an abundance of payment processors to choose from, but we’ve narrowed it down to the best: Payline is particularly well known for its honest sales practices and overall transparency. Well, it might not be the cheapest payment processor out there, but you can bet what it promises is what it ultimately delivers. Of course, Payline’s interchange pricing structure is much more transparent than the standard cost schedules offered by other solutions.

In short, Payline gives you the advantage of knowing the payment fees and rates your business will have to pay up front. Therefore, you will be able to plan your sales processes accordingly in order to minimize your transaction costs in the long run. That said, Payline is a holistic processor that goes beyond online payments to facilitate in-store payments, as well as mobile payments. Payline Connect is the payment application for e-commerce and it integrates with over 175 platforms. This enables it to securely process electronic and card payments at a wide range of online stores.

Since its inception in 1998, PayPal has grown to be the leading player in payment processing. The company is now present in over 200 countries / regions and supports ~ 25 different currencies. PayPal can be integrated directly into your website. Due to his familiarity with customers all over the world, he is highly trusted. The flexibility of PayPal is really great. You can process payments not only through your online store, but also in an app and even in your physical store. Stripe describes itself as “developer-centric” and that’s a fitting term, as Stripe’s biggest advantage is in its personalization. Stripe’s API allows you or your developer to experiment and create an experience that’s right for your business.

Stripe is available in 20+ countries and lets you accept over 135 different currencies! This means that you can bill your customers in their local currency while receiving funds in yours Square shaped; is a fantastic option for a store looking to sell both online and offline. Square offers a range of peripherals that you can set up in your physical store: from clip-on magnetic stripe readers that you install on your phone to contactless mats, terminals, brackets and even complete ledgers. Square is also incredibly intuitive and easy to understand for beginners. Its (free) point of sale system is the real added benefit. Advanced features like digital receipts with built-in feedback forms, card split costs, as well as inventory management for inventory tracking are all free.