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Credit and debit cards, digital wallets , ACH transfers , and other digital payments have become the norm. To accept electronic payment methods fast and securely, you need a paymentgateway. Its the bridge between your customers preferred payment methods and business cash flow.
As companies transition to online payment platforms, the complexities of paymentprocessingcosts can often lead to unexpected expenses that eat into margins. Understanding these costs empowers businesses to make smarter financial decisions.
To accept online payments, you need a payment processor and paymentgateway. The payment processor is a financial institution that handles transactions between the two banks. Think of the gateway as the online equivalent of a card reader or point of sale (POS) system in a brick-and-mortar store.
However, the percentage markup rate does not give you a full picture of your processingcosts. Effective rates The effective rate is what you want to look at to truly understand how much you are paying for your credit card processing.
An ACHpayment facilitator, therefore, is simply a PayFac that allows users to accept payments through an electronic bank-to-bank network. ACH transactions are one of the fastest-growing modes of electronic payments in the world due to the convenience they offer, low processingcosts, and enhanced security.
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