Choosing the right payment processor is important for business success, as it can improve cash flow, reduce costs and provide a better experience for your customers.
In this guide to payment processors, we'll explain how they operate, explore their key functions and benefits, and offer actionable advice on selecting the right solution for your business. We’ll also answer many of the most common questions on the subject, including:
What is a payment processor?
A payment processor is a service that handles the technical and logistical aspects of a financial transaction. Its primary role is to connect the merchant, customer and bank involved in the process. This includes authorising payments, securely transferring funds, and completing transactions efficiently without errors.
Payment processors are essential for both online and in-person sales. For instance, when a customer pays with a card in a shop, a credit card payment processor facilitates communication between the card network and the merchant’s bank. This process ensures that funds are approved and settled quickly, keeping businesses running smoothly. For online sales, payment processors integrate with payment gateways to encrypt and transfer data securely, offering a convenient payment solution while minimising the risk of fraud.
How does a payment processor work?
Payment processors manage transactions through a structured sequence of steps to transfer funds securely and efficiently. Understanding these steps is crucial for businesses to choose the best payment partner for their needs. Here's an overview of the process:
- Payment initiation:
A customer presents their payment method, such as a credit card or digital wallet.
- Data transmission:
The processor securely sends the payment details to the customer’s bank for authorisation.
- Authorisation:
The bank verifies the payment, checking the availability of funds and confirming the details.
- Approval or denial:
The payment processor relays the bank’s response to the merchant.
- Settlement:
If approved, the funds are transferred from the customer’s account to the merchant’s account.
These steps occur within seconds, ensuring a fast and efficient transaction process.
What do payment processors do?
The functions of a payment processor go beyond just transferring funds from one account to another. They play a crucial role in ensuring the security, efficiency, and accuracy of each transaction, helping businesses to maintain trust and compliance. Key roles include:
- Transaction authorisation:
Ensuring payments are legitimate and approved by the customer’s bank.
- Fraud detection:
Using advanced tools to identify and prevent suspicious activity.
- Encryption:
Securing sensitive data to protect it from breaches.
- Settlement:
Transferring funds to the merchant’s account after approval.
By handling these tasks, payment processors streamline operations and minimise risks for businesses.
Credit card payment processor vs. other types
A credit card payment processor specifically handles transactions made with credit or debit cards. These processors are often connected to global card networks like Visa and Mastercard. They securely verify card details, approve payments, and transfer funds securely between accounts.
In contrast, other processors manage alternative payment methods such as digital wallets, bank transfers or Direct Debits. For example, automated clearing houses like Bacs handle electronic transfers within bank accounts, which are commonly used for recurring payments, and Open Banking systems facilitate direct payments and information sharing between banks and third-party providers.
Whether you need a credit card payment processor or another solution depends on the payment methods your customers prefer and the nature of your business. However, it’s important to remember that offering a variety of different payment methods can be beneficial for your business, so avoid choosing a payment processor that only provides one solution.
Payment gateway vs. payment processor
Payment gateways and payment processors are two different things, but businesses need both to facilitate the payment process for customers, whether online or in person. Understanding the distinctions of payment gateway vs payment processor and how they work together is important to ensure smooth transactions, compliance with security standards, and a positive customer experience.
A payment gateway is a technology that authorises payments, often used in online transactions. It securely transmits payment data between the customer, merchant and payment processor. Essentially, it captures and encrypts sensitive payment details before sending them to the processor.
In contrast, a payment processor manages the entire transaction workflow. It facilitates communication between the merchant’s bank and the customer’s bank to transfer funds. In an ecommerce setting, the payment gateway handles the initial stages of the transaction by capturing and encrypting the payment data, while the payment processor moves the funds from the customer’s account to the merchant’s account to complete the payment.
Guide to selecting a payment processor
Choosing the right payment processor is a critical decision for any business. Even if you’re currently satisfied with your provider, tied into a contract, or using a solution that seems to meet your needs, switching payment processors could unlock a wide range of benefits to enhance your business processes and help you to better support your customers.
Let’s take a deeper dive into key questions to ask payment providers to make sure you choose a solution that fits your needs.
What are your fees and pricing structure?
Understanding how a payment processor charges for its services is vital for managing costs and maximising profitability. It’s important to remember that as well as charging different amounts, payment processors may use different pricing models, including:
- Flat rates:
You pay a fixed percentage for each transaction. This option is great for businesses with predictable sales volumes.
- Per-transaction fees:
This model charges per transaction, using a combination of a percentage rate and a small fixed fee. It’s common for card payments.
- Tiered pricing:
Rates vary depending on the type of transaction (e.g. online or in person), making it suitable for businesses with diverse payment channels.
Check out our pricing options here!
When comparing prices, check for additional or hidden fees, which could make a good-looking deal less affordable. For example, payment processors might charge for PCI compliance, refunds or currency conversion, and may even require a monthly subscription on top of the transaction fees. Businesses with seasonal sales may prefer flexible, scalable pricing structures that adapt to fluctuating volumes, while companies with steady, high transaction volumes might prioritize flat-rate pricing to maintain consistent cost predictability.
Access PaySuite’s fees and pricing structure
At Access PaySuite, we understand the importance of transparent pricing to build and maintain trust with our customers. You won’t find any hidden fees when you partner with us; the numbers you see are what you’ll pay. We also offer flexible pricing structures and customisable plans, making sure we can offer cost-effective solutions that meet your specific business needs, whether you’re a startup or an established enterprise.
What payment methods do you support?
It’s important to make sure the processor you choose supports the payment methods that your customers use. Just using a credit card payment processor can limit your options, while being able to offer a wide range of payment options can boost sales by accommodating customer preferences. It also allows you to select the most cost-efficient payment methods to minimise transaction fees.
Essential payment methods include:
- Credit and debit cards:
These methods are universally accepted and vital for most businesses.
- Digital wallets:
Popular options like Apple Pay and Google Pay offer quick, secure transactions and can attract a younger demographic.
- Bank transfers and Direct Debits:
These options are crucial businesses operating a subscription-based model, and those with high-value transactions.
Choosing a single payment processor that offers all of the payment methods you require minimises the number of vendors you need to work with, minimising admin and keeping down costs.
Access PaySuite’s supported payment methods
Access PaySuite offers comprehensive support for all major payment methods, including credit and debit cards, digital wallers, bank transfers and Direct Debits. This all-in-one approach enables businesses to meet their customers’ needs while simplifying payment management through a single provider.
How secure is your payment processing?
When dealing with sensitive data like customer information and account details, security is non-negotiable. Breaches can damage your reputation and result in significant financial penalties. It’s important to make sure that your chosen payment processor offers robust security features and fraud protection that not only meet but exceed compliance regulations.
Key security features that every business needs include:
- PCI DSS compliance:
A global standard for protecting payment data, ensuring that businesses handle cardholder information securely to prevent data breaches and fraud. Compliance involves adhering to specific security protocols such as maintaining firewalls, encrypting transmissions and regularly monitoring networks.
- Encryption:
Ensures that sensitive details remain inaccessible to unauthorised parties by converting data into an unreadable format during transmission. Only authorised recipients with the correct decryption key can access the original information.
- Fraud prevention tools:
Uses machine learning and real-time monitoring to identify and block suspicious transactions. These tools minimise financial loss by detecting patterns consistent with fraudulent activity, such as unusual purchase locations or inconsistent spending behaviours.
These security measures are essential for all businesses but are particularly important for industries that are particularly prone to fraud, such as ecommerce financial services. High-risk sectors like travel, hospitality and online gaming also face increased exposure due to the volume of transactions and sensitive customer data they handle.
Access PaySuite’s security measures
Access PaySuite maintains PCI DSS Level 1 compliance and employs cutting-edge encryption techniques to keep your data safe at every step of the transaction process. We use multi-layered fraud detection systems and regulatory compliance safeguards to ensure that your transactions are as secure as possible, helping you to build and maintain customer trust.
What is the average deposit time for funds?
Deposit times directly affect cash flow, especially for businesses relying on frequent payments. Standard times range from one to three business days, though some processors offer same-day or next-day settlements. The transaction type also plays a role; for example, card payments are processed more quickly than cheques due to their streamlined approval processes.
Quick deposits are ideal for small businesses with tight cash flow or industries with high daily turnover, like hospitality and retail, where immediate access to funds is important for covering daily operational costs. On the other hand, larger companies may prioritise accuracy and reconciliation over speed, making batched settlements or end-of-day processing a more suitable choice for maintaining detailed financial oversight.
Access PaySuite’s deposit times
Access PaySuite supports a variety of payment methods, combining efficient processing with advanced automation to minimise manual interventions and delays. This allows us to support smooth cash flow and improve operational efficiency, so your businesses can focus on growth without being bogged down by payment complexities.
What kind of customer support do you offer?
When technical issues arise, responsive customer support can prevent costly disruptions and help maintain customer satisfaction. Reliable support ensures that your payment processing remains smooth, minimising downtime and operational headaches. Beyond resolving issues, payment providers offering comprehensive customer support can help with system integration, provide training, and offer guidance on maximising the benefits of your payment solution.
Key considerations for customer support include:
- Availability:
Look for 24/7 support if your business operates outside standard hours.
- Channels:
Email, phone and live chat are common, but having all options is ideal.
- Expertise:
Staff should be knowledgeable about both the technical and business aspects of payment processing.
- Proactivity:
Look for providers that offer regular updates and alerts for potential issues.
- Localisation:
Regional support can provide faster and more relevant assistance.
High-touch industries like luxury retail may prefer a white-glove approach to support, where dedicated assistance ensures that every need is met with precision. On the other hand, cost-sensitive businesses might opt for self-service solutions that allow them to resolve issues and make updates quickly and easily, minimising downtime without incurring additional support costs.
Access PaySuite’s customer support
Access PaySuite provides UK-based customer support during business hours, and a 24-hour voicemail system for urgent issues. Our in-house experts deliver prompt, accurate assistance, whatever the issue, while our onboarding specialists help to make sure that your payment systems are seamlessly integrated. We also provide training to empower your team with the knowledge they need to optimise payment processes and maximise efficiency from day one.
Are there any long-term contracts or commitments?
Rigid contracts can limit flexibility, making it difficult for businesses to adapt as they grow or change their operations. Payment processors offering month-to-month agreements or scalable plans are often better suited for businesses with fluctuating needs.
For example, startups or small businesses may prefer short-term contracts to maintain agility, while larger, more established enterprises may opt for long-term commitments in exchange for locked-in rates and added services. The key is choosing a provider with flexible contract options that align with your business’ specific stage and goals.
Access PaySuite’s contracts and commitments
Access PaySuite’s flexible pricing plans and contracts are designed to grow with your business, eliminating unnecessary restrictions. As well as standard packages based on transaction volume and the level of additional services included, we also provide completely bespoke solutions designed to meet the unique needs of your business.
Can you integrate with our existing systems?
Seamless integration with your existing software, like accounting tools or point-of-sale (POS) systems, is essential for streamlining business operations. Manual data entry or using incompatible systems wastes time and increases the risk of errors, which can harm customer trust.
API-enabled solutions are ideal for businesses using bespoke systems, supporting a wide range of integrations. However, these solutions are more expensive, and may not be suitable for smaller companies with standard software. Instead, it might be best to opt for a plug-and-play option with lower costs and more basic functionality.
Access PaySuite’s integration capabilities
Access PaySuite integrates seamlessly with leading accounting and POS platforms via a robust API, simplifying workflows and reducing administrative burdens. Our onboarding team can set up these integrations for you, ensuring that your payment software is fully connected with your existing systems. As part of the Access range, PaySuite also integrates with our complete suite of business solutions, from HR software to inventory management.
How do you handle chargebacks and disputes?
Chargebacks can be costly and time consuming. Effective dispute management prevents revenue loss and maintains customer trust.
Look for payment processors offering:
- Automated tools:
For tracking and managing disputes.
- Expert guidance:
To navigate complex chargeback cases.
- Clear reporting:
To ensure transparency throughout the process.
Industries with high dispute rates, like travel, benefit from dedicated fraud mitigation tools, while low-risk sectors may only need basic support.
Access PaySuite’s chargeback and dispute process
Access PaySuite offers exceptional support for handling disputes, ensuring quick resolutions and minimal impact on your operations. Our UK-based customer service team helps to make the entire process as transparent and straightforward as possible.
Is your solution scalable?
A scalable payment processor adapts with your business, accommodating increased transactions or new payment methods without disruptions. This means that you can avoid spending money on upgrading systems or investing in new solutions each time your transaction volume grows or your customer base expands.
For seasonal businesses, scalable systems can handle spikes in demand during busy periods, like holidays or promotions, without affecting the quality of service or payment processing. Similarly, expanding companies need solutions that can easily adapt to new markets, currencies and compliance requirements without requiring major overhauls.
Access PaySuite’s scalable solutions
Access PaySuite provides customisable plans and scalable solutions, ensuring that your payment system evolves with your needs. Whether you’re a small business or a global enterprise, we’ve got the capability to seamlessly grow with your organisation.
What is your reputation in the industry?
A payment processor’s reputation speaks volumes about its reliability and service quality. Check reviews, client lists and industry accreditations to gauge credibility,and pay particular attention to clients in the same or similar sector as your business. Trusted providers with established clients demonstrate their ability to deliver consistent, high-quality service.
Additionally, looking for endorsements from industry leaders or certifications like PCI DSS compliance or ISO standards can further validate a processor’s capability to meet the highest standards of security and service.
Access PaySuite’s industry reputation
Access PaySuite is trusted by over 5,000 businesses, including industry leaders like e.on and Cineworld. Backed by strong accreditations, including compliance with PCI DSS and ISO standards, we offer proven reliability and trustworthiness for all our clients.
Choose Access PaySuite as your trusted payment processor
Selecting the right payment processor is vital for smooth operations and customer satisfaction. A reliable processor streamlines transactions, reduces risks, and supports business growth both now and in the future.
Access PaySuite’s online payments services offer transparent pricing, robust security, seamless integration capabilities and scalable solutions, making our solutions suitable for businesses of all sizes. Whether you’re just getting started on your payment journey or evaluating your current system, discover how Access PaySuite can transform your payment processes today.