Table of Contents Hide
- Payment Processors
- Payment Processor Examples
- Payment Processors Companies
- Largest Payment Processors
- What Are Processors in Payments?
- Is Payment Processor the Same as POS System?
- Is PayPal a Payment Processor?
- Is Visa a Payment Processor?
- Can a Bank Be a Payment Processor?
- How Can I Create a Payment Processor?
- How Many Payment Processors Are There?
- Related Posts
If you own a retail business in 2023, there’s a good chance you accept non-cash payments in some manner. In fact, 34% of persons under the age of 30 don’t make any cash transactions during a typical week, according to the Pew Research Center. Business owners must comprehend and acquire payment processors in order to keep up. Therefore in this piece, we will list out some of the largest payment processor companies.
A company that handles the details of accepting credit and debit cards as payment is known as a payment processor. Payment processors transfer card data between the numerous financial institutions involved in the transaction and card readers, checkout webpages, or even specialized hardware attached to a smartphone where clients enter their credit card information.
Payment processors are essential to the safety of online payments. In addition to making sure that credit cards and bank accounts for clients have enough credit available, they also make sure that the consumers’ private financial information is protected from unauthorized access by third parties.
How Does a Payment Processor Work?
When a company takes credit cards, the payment processor is the invisible party that completes the transaction by swiftly transferring money from the customer’s account to the merchant’s account. Here is how that procedure functions:
#1. The Buyer Provides Card Details
A customer gives their card details to the retailer. A card reader in a physical store, a payment page on a website, mobile hardware, or another mode of payment might all be used to do this.
#2. The Request is Handled by the Payment Infrastructure
The payment processor receives the customer’s card information once it has been transmitted through a payment gateway. After that, the processor formally starts the transaction by sending the data to the bank network (for debit transactions) or card networks (for credit transactions), such as Mastercard, Visa, or American Express, for authorization.
#3. The Cash Flows
The bank or credit card company that issued the customer’s card is notified by the payment processor that it must transfer the monies to the merchant’s bank after the transaction has been authorized and completed. According to the payment service provider and the type of acquiring bank account, the monies may be sent to the merchant’s account instantly or over the course of a few working days. The merchant is then free to transfer those cash to the bank accounts associated with their company.
What to Take Into Account While Selecting a Payment Processor
The price structure and if you need to handle payments in foreign currencies are the major factors you should take into account when comparing payment processors. When vetting payment processors, take into account the following:
- Is there a starting or initiation fee? A charge every year after that?
- With a monthly membership, are there also transaction fees?
- Will you have to buy or rent in-store terminals or other equipment for processing credit cards?
- Is there a charge to connect to your merchant account through a gateway?
- If a credit card chargeback occurs, will you be responsible for the fees?
- Will there be a charge to check the billing ZIP codes or client addresses?
- If you decide to discontinue using the processor, will you have to pay a termination fee?
- Will you have to accept foreign payments?
Payment Processor Examples
Examples of payment processors include:
- Apple Pay
- Google Pay
Payment Processors Companies
Here is a list of the top payment processors and gateway companies from which you can choose. You’ll see that some of these payment processors companies might hold the key to solving the other problems. They are as follows:
Even for vendors who only accept checks, Melio is a free option you may use on your PC or smartphone to pay invoices by bank transfer. This is practical for time-pressed business owners and professionals who need to pay bills and handle cash flow while on the go without shelling out a lot of money for accounts payable software. To integrate vendor and bill information, Melio allows you to upload files or take pictures of invoices. To sync accounts payable data, you can manually enter information or link the platform to QuickBooks online.
The cloud-based payment platform Stripe oversees online transactions. Because it can handle online payments, it’s ideal for e-commerce or web-based businesses. A complex payments engine that enables cash flow in your company and connects to tools for managing revenue, preventing fraud, and accelerating worldwide business expansion makes up its core. The inclusion of customer interfaces, payment options, fraud and disputes, revenue optimization, and company processes.
#3. PayPal Payments Pro
A payment processing system based on PayPal’s technology is called PayPal Payments Pro. It enables online merchants and companies to accept credit card payments both online and offline. Additionally, users can create and host their own checkout sites. Users of PayPal Payments Pro can accept credit card payments by phone, fax, mail, and online. It allows credit card payments without requiring PayPal accounts from customers. Credit cards, debit cards, loyalty cards, and PayPal credit are all accepted by this payment processing option.
With localized payment options and a number of additional features, 2Checkout is a significant international payment platform that enables businesses to accept online and mobile payments from customers globally. Global marketplaces and a variety of payment methods are made possible by the platform. In addition to PayPal, 2Checkout now accepts credit and debit cards. By providing tailored options, it enables retailers to change the platform so that they can sell in the language and money of the buyer. Lastly, they might offer regional payment choices.
#5. Amazon Payments
A gateway for Amazon customers and businesses is called Amazon Payments. It provides reliable, quick, and convenient payment solutions for Amazon buyers and merchants. Amazon offers two payment options: Log In And Pay (Shopper) and Pay With Amazon (Merchant). For online merchants and sellers that want to provide a positive shopping experience, there is Pay With Amazon. The bundle offers features and methods to draw in new clients and make them become devoted customers.
For enterprises, the BlueSnap All-in-One Payment Platform streamlines challenging payment procedures. The platform’s ability to accept both domestic and foreign payments enables firms to develop and prosper. The fraud protection feature in the program cuts down on fraudulent payments by 80%. Businesses can access over 30 acquiring banks with BlueSnap. This feature boosts payment conversion rates, which raises revenue and lowers cross-border fees. The platform offers a cutting-edge subscription billing engine that can produce accurate bills and reach customers anywhere in the world.
Largest Payment Processors
Let’s look at the top 7 credit card processors on the globe.
#1. J.P. Morgan Chase Bank
The biggest credit card processor in the world is J.P. Morgan Chase. It has maintained a high position among the world’s top credit card processors. It has a long track record of achievement and continues to be the largest processing company in the world. Also, it is the largest processing enterprise in the world based solely on its $32 billion in annual processing volume.
The company manages over $2 trillion in assets and provides services to over 200 million clients worldwide. Beyond being a bank that accepts credit cards, J.P. Morgan Chase offers more services. It also provides investment banking services to organizations and governments all around the world. The corporation generated an astonishing $127 billion in revenue in 2021. which represents a 2% reduction from their 2020 income.
#2. Wells Fargo
An international financial services company with its corporate headquarters in the US is called Wells Fargo. Despite being well-known, the company handles fewer orders than many other businesses on our list. Each year, it manages 9.3 billion USD. Over 100 million consumer accounts totaling $1 trillion in assets are handled by them. The earnings of Wells Fargo derive from other banking operations including lending and account fees.
#3. Global Payments
One of the many services that Global Payments provides to clients throughout the world is credit card processing. The company presently employs over 4,000 people worldwide and has $4 billion in annual revenue since its founding in 1997. With operations in 32 different nations, Global Payments is an S&P 500 company. Atlanta is where the company is based. It manages transactions worth more than one billion dollars for more than 650 different retailers just in the United States. Its main goal is to provide payment technology services, not just in the US but also in other countries in North America, Europe, Asia-Pacific, and Latin America.
The headquarters of Fiserv, which was founded in 1984, are in Brookfield, a city in the state of Wisconsin. On the continents of North America and Europe, the corporation ran approximately 100,000 retail stores. Fiserv is a business that provides a range of payment processing options, including customized software development and ATM services. The company completes transactions worth 27.2 billion USD for roughly 2 million organizations each year.
Additionally, First Data, which Allen Taylor and Thomas McGovern created in 1971, was acquired by Fiserv in 2019. Before being acquired by another company, it was one of the biggest credit card processing companies in the world.
Elavon has been in business since 1991 and has operations all around the world. Like Global Payments, Elavon has its corporate headquarters in Atlanta, Georgia. The company has more than a million merchant accounts spread across its global network of partners. Services like mobile point-of-sale (mPOS), eCommerce integration, and other value-added services (EDCP) are provided by Elavon Digital Commerce Platform. They serve both small and large businesses, like Staples and Target. With more than 2 million clients in more than 36 countries, it is one of the largest commercial banks in the United States. The company’s yearly revenue is thought to be $1.6 billion.
#6. Bank of America
One of the biggest and best-known financial institutions in the world is Bank of America. Its assets total over $2,160 trillion, and it operates more than 5,000 branches and 15,000 ATMs throughout 25 nations. Over 200 million customers can also take advantage of its banking and financial services. The company only manages about $8.5 billion annually, despite its size. Consumer banking generates Bank of America’s revenue instead. The bank has also become more computerized overall, including the inclusion of contactless ATMs.
What Are Processors in Payments?
A payment processor is a business that enables the communication between the seller’s bank and the bank that issued the buyer’s debit or credit card.
Is Payment Processor the Same as POS System?
Although a POS system is not a payment processor, it frequently comes with payment processing as part of its products.
Is PayPal a Payment Processor?
As a so-called payment aggregator, PayPal has its own payment gateway called Payflow.
Is Visa a Payment Processor?
The two biggest payment processing networks in the world are Visa and Mastercard.
Can a Bank Be a Payment Processor?
In reality, only a small minority of banks actually offer payment processing services, and even then, they are merely reselling merchant service provider services at a markup. Remember that even if your bank processes your transactions, you are not forced or required to utilize them for merchant services.
How Can I Create a Payment Processor?
The precise procedures to construct a payment gateway will depend on the requirements of your organization, but most companies will employ a process similar to the one described below.
- Create the infrastructure for your payment gateway.
- Decide on a payment processor.
- Establish a customer relationship management (CRM) system.
- Put security measures in place
How Many Payment Processors Are There?
Nearly 1300 independent sales organizations that are registered with Visa are expected to be selling credit card processing to merchants and company owners as of 2022.
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