Payment processing software facilitates the secure transfer of funds between customers and businesses during transactions. It is used by merchants to accept payments in-store, online, or through mobile apps. It essentially acts as a middleman, to connect the customer’s payment method (like credit cards or digital wallets) with the business’s bank. The software is able to encrypt sensitive data to ensure privacy and prevent fraud. It also verifies the transaction details for accuracy, and authorizes the payment. 

Using payment processor software offers several advantages for businesses. There include, but are not limited to, the following: 

• Better Customer Experiences — Payment processor software automates the payment process and reduces the need for manual intervention. Customers can make payments securely and instantly, without hassle or delay, from anywhere and on any device. 
• Enhanced Security — Payment processors offer thorough security measures that help to protect sensitive customer information (like credit card details). Technologies like encryption and tokenization work to prevent fraud and data breaches. Meanwhile, fraud detection tools screen transactions for suspicious activity. ‍
• Global Expansion — Many payment processors allow businesses to accept payments in multiple currencies, making it easy for international customers to pay in their local currency. They also help by handling complex tasks such as currency conversion, international compliance, and tax regulations.

Common features of payment processors include: 

Payment processor software typically costs between 1.5% to 3% per transaction, plus a fixed fee of around $0.30. Some providers also charge monthly fees ranging from $10 to $50, depending on the features. For businesses with high transaction volumes, custom pricing may be available.