Credit card processing companies serve merchants by facilitating credit and debit card payments. While the process happens in seconds on the surface, a lot is involved on the back end of a transaction. The processor acts as the go-between for the customer’s bank (where the payment comes from) and the merchant’s bank (where the payment ends up).
Merchants who wish to accept credit or debit card payments must partner with a credit card processing company. Processing companies can facilitate other forms of payment as well, such as Apple Pay, Google Pay, PayPal, ACH and checks.
When choosing a credit card processing service, remember that there is no one-size-fits-all solution. It’s important to find one that matches your business needs, budget and goals. Some specialize in online payments while others focus on in-person transactions and point of sale (POS) systems, and still others provide an all-in-one solution for all types of sales.
Credit card processing companies may cater to specific types of businesses or merchants that process a certain level of volume.