Payment Processing Companies | 5 mins read

Payment Processing Companies- The Ideal Solution For Your Business

By Sanminder Kaur
Payment Processing Companies- The Ideal Solution For Your Business

What are Payment Processing Companies?

Payment processing companies are the backbone of the digital economy. They provide software, hardware, and services that help merchants accept credit cards, debit cards, and electronic checks.

What are Payment Processing Companies?

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Payment processing is the business of transferring money from the payer to the payee, which is usually a merchant. The process is initiated by the payer but is usually taken on by the payment processor.
The payer provides the payment processor with the payee's bank account number, the amount of the payment, and other information. The payment processor then transfers the money from the payer's bank account to the payee's account. Payment processing is a vital part of any business. Processing a payment simply means exchanging a customer's money for a product or service. This article discusses the basics of payment processing, the importance of processing companies, and some features of payment processing companies.

Why are Payment Processing Companies Important?

Payment processing companies are vital because they ensure smooth transactions between a customer and a merchant. They act as a mediator between the two parties and process payments via credit cards or debit cards and sometimes even mobile payments or direct bank account to account transactions. If we are questioning the importance of these companies then let us understand how a sale and purchase task is carried out.

You are running a small business and providing a service to the customers, it could be a restaurant, salon, retail store or anything else. You offer a service to the customer and collect fees or bills in return. The first thing you need for revenue collection is a merchant bank account where all your payments will be directed and the second is the customer who pays for the service. Well, there is another thing in between- a payment gateway that will direct the payments from a customer's account into the merchant's.

So, whether the payment is made using cards or mobile banking or any other medium, the payment processing companies play the role of a middle man to process the payments smoothly. For this, they may or may not charge a small fee which is either paid by the merchant or divided between the payer and the payee. Let us understand the role of some of the most common payment companies and their features in detail.

1. PayPal

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PayPal is a great processing company if you need processing for transactions of lower volume. It is a trusted name and is very easy to set up. One of the best things about PayPal is that many online, as well as retail outlets in America, support PayPal so most consumers are very comfortable making mobile payments using the app. It also holds several PCI compliance certifications like Mastercard Site Data Protection Program and Visa Cardholder Information Security Program. Some of the best features of PayPal are listed below-

Easy to Setup- PayPal is very easy to set up and even simpler to use. You just need to install the app and set up your account. For card payments, a card reader is required which is easily available at variable prices based on the model.
Fast- PayPal is one of the quickest methods of receiving payments in your account. Usually, the turnaround time is within 24 hours, which is very quick compared to many other gateways.
Secure- PayPal is a trusted name, therefore makes sure to keep the gateway safe and secure.
Pocket Friendly- PayPal does not charge any monthly fee or setup costs, this is why it is commonly chosen as a processing gateway. As a fee for processing payments of smaller volume, PayPal asks for a very nominal amount affordable by all business owners.

2. Helcim

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Helcim is one of the best payment processing companies and is trusted by thousands of businesses worldwide. It offers the following unique features to its users-

Affordable- Helcim makes accepting fees into the merchant account and making transactions an affordable process. When you pay for using this gateway it takes your worries away and takes full control and responsibility of the payments made.
Simple- Helcim is very simple and has all the tools required by merchants ready for easy operation. The users can forget any complicated paperwork and just get started with the payment processing solutions offered by Helcim.
Smart- Just like the modes of payment are modifying, so are the ways of processing. Helcim offers up-to-date processing for various payment modes like cards, smart apps, and checks. This makes processing easy for the merchant and makes the customer experience unique.
Transparent- With matters related to payment honesty and transparency is very essential. Helcim makes sure to keep all the terms and conditions related to card processors or processing fees clear with the users.

3. National Processing

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National Processing is highly rated for its transparency when it comes to policies and pricing. It is affordable and works well especially for small to medium enterprises. The gateway is used by several merchant services using different Pos Types for accepting payments. National Processing offers the following features to the users-

Flexible Plans- The gateway offers a variety of well-crafted plans for use depending on the business type and usage.
Transparent Pricing- National Processing makes the pricing very clear in the beginning and does not shock the merchants with hidden payments and fees later.
Low Fee- The processing fee for each transaction is very low with National Processing payment gateway.

4. Stripe

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When we talk about e-commerce and online payments, Stripe payment gateway is extraordinary. Stripe has been designed and programmed for processing payments the way they are preferred these days- online!
Stripe works easily for you to not worry about accepting and processing payments for online businesses in low or high volume globally. The best features of Stripe are listed below-

All Payments Accepted- Stripe accepts payments of all kinds like mobile payments online or wallets and processes them fast.
Custom Pricing- Stripe allows customised plans for payment processing with minimum monthly fees depending on the merchant's requirement.

5. Square

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Square is a common name regarding pos systems and payment processing tasks among merchants dealing directly with customers. Square is used by thousands of business persons worldwide to keep their operations smooth and error-free.

Fast Setup- Square has been known for its easy setup features. It fulfils all requirements like PCI compliance and security protocols and offers total reliability.
Various Equipment Available- Square is a point of sale system that offers a variety of equipment to be used for various tasks. Merchants can choose from several kinds of card reader devices, barcode scanners, and a lot more.

Payment Processing Companies- The Ideal Solution For Your Business People also ask

The payment processing industry is made up of companies that provide processing services for credit card, debit card, electronic check, and other forms of payments. The most well-known industry participants are the largest banks, but the industry also includes many small, local processors.

When you are starting a business, you have to find the right payment processors for you. The most common payment processors are PayPal, Stripe, Apple Pay, Square, Google Wallet, and Amazon Pay.

The top picks for the best payment processing company are PayPal, Stripe, Square and many more. Payment processing is a critical aspect of being a successful online business, and if you have a physical store, you'll need a point of sale system.

There are a lot of different credit card processors out there these days. With so many options, it's been difficult to decide who is the best credit card processor. The best option will change as per the business type, transaction volume and locations.