Traditional POS V/S Payment Gateway for Credit Card Processing
The credit card processing happens either over the POS terminals for the physical stores or payment gateway and payment processors on the online platforms. However, both have some benefits and setbacks for processing card payments. No matter which one is the best, your business needs to accept credit card payments to generate revenue for businesses.
Processing card payments for the business allows a corporation to reach a global audience faster. In other words, a corporation can get to a variety of consumers for their firms. Adding more value to your business’s presence is always the ideal goal. Hence, the comparison will provide a better ground for you to work.
Ease of Payments
The ease of payment processing is one of the most crucial parts of the payment experience. Furthermore, there are multiple reasons for a merchant to offer the best payment experience through easy payments.
Traditional POS Systems for physical payments
The payments are processed by swiping, tapping, or entering the EMV chip on Traditional POS Systems. The terminal uses the fed data of details and processes the payments right then and there.
Processing debit and credit cards are simple for brick and mortar shops. Even for a business that accepts payments on delivery through card payments and POS systems are pretty handy. However, the person and the card need to be present physically for the transaction.
Payment Gateway makes online payments easy.
On the other hand, there are payment gateways that accept online card payments. The Card-Not-Present transactions happen over multiple sources, and the internet is one such place. A payment gateway processes the card payments by entering all the card details on the payment page. It makes the process quick for processing.
It allows online payments and needs no physical presence of the consumer. Therefore, it becomes a hassle-free process and offers the best solution to companies extending their business over online platforms.
Security
The security element of credit card processing is pretty necessary. The reason for high security is for consumers and merchants at the same time. If payment is not secured, the chances are it could become a prime setback for the company.
Security through EMV Chips
For the POS terminals, the EMV Chips plays a vital role in payments. EMV stands for EuroPay, MasterCard and Visa to secure the transactions over the channel. There is communication between the chip, card, and the terminal for the payment processing.
Moreover, the consumer needs to enter the PIN or Code for the payment to complete. The EMV chip provides control of security over physical card payments.
Compliances and Protocols
EMV security is less crucial as the security depends on the virtual system for the online payment processing. Therefore the payment gateway takes all the steps to provide the best safety on the line of action.
PCI Compliant Payment processing channel with 3D security offers the best solution for top-notch security. Furthermore, passive security tools such as Point-To-Point Encryption and Tokenization works in proximity to payment processing.
What about consumers’ payment experience?
Credit card processing is not only for merchants but also for the consumer’s to get the best payment experience. If there is a void in between or the transaction is complete without a good payment experience, the business might witness limited consumers.
The physical experience through the POS
On the one hand, a merchant with a physical show provides ample opportunity to the consumers to get the payment completed through the POS terminal. Therefore, it offers a smooth payment experience right in front of the eyes.
However, as the POS terminal is hardware, if there are any errors in the hardware, it stops the payment right then and there.
Seamless online payments
On the other hand, online payments are not hardware but software involved. That means if there is a failure, there can be an instant solution available at your end. The service provider will offer a solution for the business quite easily.
Furthermore, multiple features provide a better consumer payment experience and make the process streamlined.
Will there be an issue of chargeback?
Chargebacks are annoying for a merchant so no matter the presence of the business. The physical and online stores require a way to fight the chargebacks. Both have different types of chargebacks that might cause trouble to the free flow of the corporation.
POS Chargeback
POS payments witness chargebacks for the business too. Therefore, a merchant needs protection from the chargebacks. If there is any illegitimate dispute, the merchant needs to be wary of it.
A merchant can provide refund policies, support and services to the consumers. They need to be cautious of the complete process and offer the best solution to the consumers.
Protection from Chargebacks!
On the other hand, the online payment gateway with credit card processing capabilities has chargeback management services. eMerchantPro offers complete chargeback protection. It covers the entire cost of the chargeback for the merchant.
Furthermore, it streamlines a business and takes away the worry of the chargeback.
Recurring billings and payments
Recurring billing and payments are some of the most vital parts of a firm. It spreads the business to different consumers and offers a better solution to them as well. Therefore, billings and payments are pretty crucial for any firm.
Can POS take recurring payments?
There are multiple norms and protocols for recurring billing over the POS terminals. The merchant needs a recurring based POS for processing payments through the terminal. However, the process is long and requires definitive solutions.
Hence, it is quite a hassle for the merchant to get the payments and billings going.
Recurring Payments over the payment gateway
A payment gateway offers credit card processing and, at the same time, provides recurring payments too. It allows a better solution to the merchant and streamlines the process of getting the services.
All a merchant needs to do is tell about the requirements during the initial assessment.
The Final Verdict
That brings us to the close of the blog. Credit card processing is a complex process that happens behind the curtain. On the other hand, it looks pretty smooth on the front line. Both a POS Terminal and a Payment Gateway can process credit card payments seamlessly. However, multiple factors work to provide a more precise solution to the merchants.
Let’s take a scenario to decide a particular situation; if a business is a high-risk business such as Adult Toys Merchant. Credit Card Processing via POS terminal is next to impossible. The reason is service providers tend to stay away from merchants with a higher risk factor. On the other hand, there are dedicated Payment Service Providers offering payment processing solutions to high-risk businesses.
What does eMerchantPro Offer your Business?
eMerchantPro offers a firm payment processing solution to businesses around the globe. To be precise, the high-risk corporations that don’t get a credit card processing solution need expert service providers. Therefore, eMerchantPro offers the solution they need for the business.
A dedicated service provider offers personalized services to high-risk businesses. With expert merchant services and after-sales support, eMerchantPro offers precise card payment solutions to businesses. Get in touch with the expert services today to learn more about the process.