Terms

Payment Processors

What are Payment Processors?

A payment processor is a company or service that facilitates electronic transactions, such as payments made with credit cards, debit cards, or digital wallets, between businesses and their customers. They enable businesses to accept various forms of payment securely and quickly, handling the logistics of moving card data between customers, payment networks, and banks. Payment processors play a crucial role in ensuring transactions are completed efficiently and securely, while also providing support for multiple currencies and popular local payment methods to facilitate global business operations.

How Payment Processors Work

  • Payment processors work by securely transmitting transaction details between parties, ensuring the customer has sufficient funds and verifying their identity.
  • They use encryption and comply with PCI DSS for data security, coordinate the transfer of funds, and credit the merchant account.
  • Additionally, payment processors provide data for business insights, monitor transactions for fraudulent activity, assist in handling disputes, and support multiple currencies and payment methods for global transactions.
  • Popular payment processors include Stripe, Helcim, Square, Shopify POS, and PayPal, each with its own fees and offerings.
  • Modern payment processors often use a software-as-a-service (SaaS) model, offering regulatory compliance and a single electronic portal for various transactions, reducing costs and improving transaction quality.
  • Future trends in payment processing include the rise of vertical-specific processors, accelerated adoption of contactless payment methods due to COVID-19, and a movement towards customer choice and autonomy in payment options.

Examples of Payment Processors

Examples of popular payment processors include Stripe, Helcim, Square, Shopify POS, and PayPal. Each processor has its unique offerings and features, catering to different business needs.

Stripe, for instance, is known for its robust API and developer-friendly tools, while Square is popular among small businesses for its easy-to-use point-of-sale (POS) system and flat-rate pricing. Helcim offers transparent interchange-plus pricing, making it a suitable choice for businesses seeking cost-effective solutions.

Shopify POS is designed specifically for e-commerce businesses, providing seamless integration with the Shopify platform. Lastly, PayPal is a widely recognized and trusted payment processor, offering a range of services, including online payments, invoicing, and POS solutions.

Benefits of Using Payment Processors

Payment processors offer numerous benefits to businesses, including cost savings, efficiency improvements, and enhanced customer satisfaction. By choosing the right pricing model, businesses can save on transaction fees, especially those with large sales volumes.

Payment processors streamline the logistics of card payments, ensuring prompt and secure transactions, which in turn improves overall efficiency. Furthermore, offering multiple payment options through a reliable payment processor enhances the customer's shopping experience by providing convenience and security during transactions.

Other terms

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Process Automation

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Process Automation

Request for Quotation

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Request for Quotation

Amortization

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Amortization

Operational CRM

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Operational CRM

Gated Content

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Gated Content

Sales Sequence

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Sales Sequence

Platform as a Service

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Platform as a Service

Cybersecurity

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Cybersecurity

Unit Economics

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Unit Economics

Lead Conversion

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Lead Conversion

Competitive Advantage

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Competitive Advantage

Customer Lifetime Value

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Customer Lifetime Value

Lead Velocity Rate

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Lead Velocity Rate

Value-Added Reseller

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Value-Added Reseller

Sales Presentation

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Sales Presentation

SFDC

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SFDC

GDPR Compliance

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GDPR Compliance

Pipeline Management

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Pipeline Management

Buying Committee

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Buying Committee

Shipping Solutions

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Shipping Solutions

Time on Site

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Time on Site

B2C2B

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Lead Scoring Models

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Lead Scoring Models

Email Engagement

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Email Engagement

Content Delivery Network

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Content Delivery Network

Customer Retention Cost

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Customer Retention Cost

Serverless Computing

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Serverless Computing

Customer Journey Mapping

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Customer Journey Mapping

Interactive Voice Response

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Interactive Voice Response

Generic Keywords

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Generic Keywords

Purchase Buying Stage

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Purchase Buying Stage

Dynamic Segment

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Dynamic Segment

Enrichment

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Enrichment

Monthly Recurring Revenue (MRR)

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Monthly Recurring Revenue (MRR)

Lead Enrichment Tools

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Lead Enrichment Tools

Persona-Based Marketing

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Persona-Based Marketing

Revenue Intelligence

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Revenue Intelligence

Payment Gateways

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Payment Gateways

Zero-Based Budgeting (ZBB)

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Zero-Based Budgeting (ZBB)

Event Marketing

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Event Marketing

Lead Generation Funnel

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Lead Generation Funnel

Customer Data Platform (CDP)

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Customer Data Platform (CDP)

Email Cadence

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Email Cadence

Artificial Intelligence in Sales

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Artificial Intelligence in Sales

Deal-Flow

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Deal-Flow

Call for Proposal

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Call for Proposal

Nurture

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Nurture

Account-Based Sales

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Account-Based Sales

Annual Recurring Revenue (ARR)

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Annual Recurring Revenue (ARR)

Account-Based Analytics

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Account-Based Analytics

Social Proof

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Social Proof

User Interaction

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User Interaction

B2B Marketing Attribution

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B2B Marketing Attribution

B2B Demand Generation

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B2B Demand Generation

Warm Email

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Warm Email

High Availability

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High Availability

Lead Scoring

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Lead Scoring

Deal Closing

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Deal Closing

Inside Sales Rep

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Inside Sales Rep

Inside Sales

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Inside Sales

Sales Manager

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Sales Manager

Customer Data Analysis

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Customer Data Analysis

Regression Testing

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Regression Testing

Lead Qualification

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Lead Qualification

Target Buying Stage

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Target Buying Stage

GPCTBA/C&I

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GPCTBA/C&I

Business Intelligence

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Business Intelligence

Lead Magnet

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Lead Magnet

AI-Powered Marketing

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AI-Powered Marketing

Predictive Lead Generation

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Predictive Lead Generation

Sales Operations Analytics

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Sales Operations Analytics

Sales Script

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Sales Script

Behavioral Analytics

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Behavioral Analytics

Account Click Through Rate

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Account Click Through Rate

Microservices

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Microservices

Decision Buying Stage

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Decision Buying Stage

Expansion Revenue

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Expansion Revenue

Cold Email

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Cold Email

Cold Calling

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Cold Calling

Request for Proposal

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Request for Proposal

Net Revenue Retention (NRR)

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Net Revenue Retention (NRR)

Contact Discovery

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Contact Discovery

Lead Enrichment Software

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Lead Enrichment Software

Escalations

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Escalations

Outbound Lead Generation

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Outbound Lead Generation

Sales Compensation

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Sales Compensation

Software as a Service

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Software as a Service

Customer Data Management (CDM)

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Customer Data Management (CDM)

ETL

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ETL

Rapport Building

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Rapport Building

Sales Dialer

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Sales Dialer

Average Customer Life

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Average Customer Life

Trigger Marketing

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Trigger Marketing

Sales Engagement

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Sales Engagement

Value Chain

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Value Chain

Programmatic Display Campaign

Learn about programmatic display campaign, including how programmatic display campaigns work, & benefits of programmatic display advertising.

Programmatic Display Campaign

Sales Pipeline

Learn about sales pipeline, including building a robust sales pipeline, key stages of a sales pipeline, sales pipeline vs. sales funnel.

Sales Pipeline

Positioning Statement

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Positioning Statement

Integration Testing

Learn about integration testing, including benefits of integration testing, best practices, challenges and solutions, & tools and resources.

Integration Testing

Inbound Sales

Learn about inbound sales, including principles of inbound sales success, transforming leads into customers, & inbound vs. outbound sales: a comparison.

Inbound Sales