Payment processing software provides businesses with the means to process customer credit card payments either in person or online. Payment processing software may also integrate with online wallets or other digital payment methods to provide an alternative to credit card payments. Businesses can use payment processing software to facilitate customer transactions, be they in a storefront or through an e-commerce website. Any business that accepts payments in a method other than cash can benefit from payment processing software. By completing transactions quickly and securely, payment processing software ensures that business proceeds as normal and that merchants are paid efficiently.
Payment processing software often includes or integrates with payment gateways, since the gateway is used by e-commerce software to collect a customer’s payment details and securely transmit them to the payment processor. As a result, payment processing software is often used in conjunction with e-commerce platforms and retail POS software.
To qualify for inclusion in the Payment Processing category, a product must:
- Collect customer payment information and relay it to a bank for approval or denial
- Transmit approval or denial of a transaction back to the customer or merchant
- Provide payment data to merchants
- Allow merchants to send or receive payments using a variety of methods, such as credit cards, online wallets, or other digital payment methods