How to Accept Payments Online With only 16% of consumers carrying cash and the popularity of ecommerce, if you don't have a payment processor for your business, you're missing out. In this post, we'll talk about the software options available for accepting payments online — including some free options, and how payment processing can help streamline your business processes and increase sales. But first, let's cover the basics of how payment processing works. What is payment processing? A payment processor is a company that facilitates electronic payments (credit card, digital wallets, ACH) between a business and the bank. Essentially payment processors handle all of the backend logistics between merchants, banks, and credit card companies that enable businesses to accept payment. How does payment processing work? When you shop at a retailer and pay with a credit card, the payment processor works in the background to authenticate and complete the transaction, moving the money from your account to the business’ account. Here’s what happens behind the scenes when a customer makes a card payment: A customer gives the merchant their credit or debit card to make a purchase. This is either done using a payment terminal in-person or through an online payment page. The card information goes through a payment gateway or portal which encrypts the customer's personal data to ensure privacy and sends it to the payment processor. The payment processor then sends a request to the customer’s issuing bank to see if...