What is a payment processor and how does it work

The fear of paying online is still at surprisingly high levels in us in the country. Romanians often prefer to pay the repayment when they buy something. But the future is increasingly digital. In this context, finding out how an online payment processing system works can be of real benefit: you will know the mandatory basics, what criteria you need to consider and how to choose a reliable payment processor.

What is a payment processor?

A payment processor is that service that facilitates transactions between sellers and buyers. Whether we are talking about services (OLX or…?), Selling physical products (eMAG) or investing in digital assets (cryptocurrencies) between merchants and the end user, there is a way to make payments.

Ideal online payment processor

Digital payments (online) require more attention, as they come with a number of notable benefits, but also some constraints worth considering. The main advantages are the ease and speed of payments. The constraints come from the need for high security and ease of use.

So, what is a payment processor and what are the criteria that it must meet:

• Increased data security both for card payment (debit or credit) and for bank transfers;
• Easy to use;
• Quickly, with all the data in sight;
• Decent commissions – for example, in the crypto area, there is no card payment in our country, the commissions being very high for the end user;
• Good support;
• Sustainable refund policies.

Payment processors in crypto space

Therefore, identifying a method to meet all these criteria is not straightforward.

In the material below you will see details about all these things, on 2 concrete cases: Netopia and Coinvertit. The movie is addressed, first and foremost, to those who are planning a small business and are looking for a good payment processor option.

But, above all, the video is addressed to the ordinary consumer, so that he understands correctly and concretely what is a payment processor, how it works and why things are important to take into account.