It can be difficult to figure out the options that will suit best to complete the payment procedures with credit cards online and choose the proper payment processor.
This step is the spine of your online business and a crucial point to keep in mind when retailing online. After all, if you can’t process payments properly online, you’re out of business.
Did you know that before we get directed to the payments page and place an order:
- More than one-third of shoppers are hesitant to buy things online due to security worries.
- Every year, fraud costs the typical company 5% of its sales.
- 50 percent of small business owners are at fraud in their ongoing business operations at some point in time or other.
- The average cost of resolving fraud is $114,000 per time.
The processing of your credit card option can impair your brand’s capacity to expand abroad because of the conversion in currencies, fraud, and external fees.
Do buyers coming from abroad have faith in the solution you’ve chosen?
Is that solution even compatible?
You might face a hugely complicated decision by looking at each provider’s costs, contracts, and fine print. A variety of elements must be considered, as well as how they are affecting your organization. There is no incorrect or correct response; apart from the solution that best suits your situation.
Before deciding on a system for accepting payments through debit and credit cards, make sure to take up some comparison shopping.
This article will guide you with the processes and provide you with all the relevant information that you’ll require to determine the best fit for your company, including:
- How will your business generate revenue and how to give it a start?
- How they are handled by MasterCard and American Express, and find out how much to pay a minimum.
- The fraud types and the risks that might come along the way and how to overcome it.
- How to resolve problems, and why eliminating your fraud risk lowers your chargeback risk.
- What are the benefits of consumer financing, and what payment options provide it?
- Tips for expanding and selling overseas, as well as picking a globally known payment source.
Before we get started, it’s important to understand that payment processors are divided into three categories: payment gateway + merchant account, simplified credit card processors, and all-in-one solutions. Here’s a basic rundown of each one.
Payment Gateway + Merchant Account
To collect payments online a combination of the merchant account along with a payment gateway has traditionally been used. SecureNet (USA), eWay (Australia and UK), and Authorize.Net (USA) are examples of this type of provider.
A merchant account is a type of commercial account at the bank that allows you to accept credit cards as a payment method.
An online payment gateway links your store to your serviceable merchant account, allowing the many parties involved in the transaction of your payment to complete the transaction more efficiently. Consider it the internet equivalent of an in-store coupon.
There are some fees associated with the merchant account as well as the payment gateway. Luckily, there are several other options available, that don’t charge for transactions or setup.
Payment gateways may also provide more control and safety regarding security regulations and customization while you set up payment by credit card, making it a better option for large companies that require a more customized response.
There is this particular thing to keep in mind when combining a merchant account with a payment gateway is that you’ll be required to raise a request in both, which normally entails filling out papers and submitting financial information.
This is because the process of completing your applications requires some time, and you may not start receiving payments immediately. After your applications have been accepted, link your registered account to the desired gateway, and then the gateway to your store. This usually entails setting up your retail store with some shared secrets, tokens, and API keys.
As the providers are enormous enterprises with large support teams, you normally get more hand-holding and specialized customer attention when you utilize a payment gateway. Getting someone to reply to your asked questions with a solution over the phone is possible.
There is more flexibility in terms of security standards and customization in payment gateways, making them a better choice for large enterprises that require a more customized solution.
Integrated Solutions
These systems, such as PayPal Commercial Platform, integrate both the payment gateway and an account into one package, making setup faster and effortless.
These solutions usually offer a price structure that is easy to manage and accept most registered credit and debit cards. Furthermore, many don’t charge a cost monthly, while some services do charge fees monthly for specific extra features.
Setting up is faster and enhanced with services like PayPal. They also accept all registered credit cards, as well as alternative payment options (such as PayPal), and typically provide inexpensive transaction fees.
One disadvantage was that they didn’t always provide a flawless checkout experience in the previous years. Customers might often be redirected to another site from your site to complete the payment for an order, depending on how your solution was set up. This no longer holds. You, being the owner of the business, have the option to choose how your customers checkout with PayPal which is powered by One-Touch technology.
This is significant since PayPal is extremely popular, with over 286 million users who are currently active. We advocate integrating PayPal along with some other services so that customers who want PayPal can do so, while those who don’t can choose another.
Online platforms like PayPal and Payoneer have simplified the procedure of accepting online payments.
You don’t have to install a merchant account or a payment gateway, which means lesser fees (and suppliers) to keep track of.
The rates are comparable to those offered by every solution in one, and many of the processors that are new don’t charge any fee for setup or on a monthly basis. The method is simple: the customer’s credit card number is given, and the procedure of payment is processed.
