Crafting a digital payment strategy for a small to mid-sized business can be challenging, especially if you are unfamiliar with the tools you’ll need. As an independent treasury strategist, I can help your company develop the best payment processing strategy tailored to your company’s needs. One of the aspects of your payment processing strategy that you’ll need to know is the difference between a payment gateway tool and a payment processor tool. These tools are crucial if your business accepts credit card payments, but each has a different role in your overall processing strategy.
Payment gateway vs. payment processor
You’ll likely need a payment gateway and a payment processing tool to accept credit card payments. But what is the difference between the two? Here’s a quick breakdown.
A payment gateway tool collects credit card information from your customers and verifies it, like a physical card machine does in a retail location. With a payment gateway tool, the customer authorizes the transaction. Many businesses have this tool white-labeled and incorporated into their websites or set up as a third-party link that customers are directed to at the point of sale. Payment gateway tools are best for online stores, collecting payments over the phone or when a physical card is not present.
A payment processing tool is necessary for any business that collects credit card payments. This tool is an intermediary between the credit card company and the business collecting the payment. It sends the information to the credit card company or issuing bank to authorize the payment, which is then returned to the business. Many payment processing tools also include a point-of-sale gateway system for payment transactions.
Craft a payment processing strategy for your business
Navigating the world of payment processing can be daunting, but with my guidance as an independent treasury strategist, we can develop a strategy for processing your credit card payment. I have the experience to help your business create a strategy that enhances efficiency, security, and cost-effectiveness. Whether your business needs a payment gateway or processing system, we can find the right tool that fits your overall payment processing strategy, meets your budget needs, and ensures that your business can effectively manage digital and credit card payments. So, if you’re ready to optimize your payment processing strategy to streamline your transactions and boost your bottom line, let’s chat. Contact me today to book a consultation with my office! https://www.richmondfs.com/
