Originally written by Anna Jordan on Small Business
Now that your business is ready to take payments, it’s time to think about how you’ll be processing payments. Alternatively, you might just want to change your current payment system. It’s time to think about what are the best payment processors for you and your business.
You’ll find that payment processors perform largely the same tasks, but it could be a single feature – or the cost – that’ll steer your final decision.
Knowing what’s on the market will help get you going, which is why we’ve compiled a list of the most widely recognised systems. But first: a quick definition.
>See also: Why getting up to speed on card payments is essential for SMEs
What is a payment processor?
A payment processor is a third-party payments system, sending between your customer’s bank account and your business bank account. Payment processors can also authorise transactions and work on merchants being paid within a certain time period.
The term is often used interchangeably with payment gateway, a means of approving a payment. Many firms combine payment processors and payment gateways in one product, so you’ll more commonly see it referred to as a payment gateway.
>See also: Setting up card payments