How To Accept Credit Card Payments Online
A business, whether big or small, must be able to accept credit card payments. Doing so will increase sales and revenue as it provides better payments experience for customers, especially when selling online.
Also, providing more payment options as online credit card processing enables enterprises to grow and reach more customers in other parts of the world.
Picking the ideal credit card processor for your operation can be challenging if you do it all on your own. But if you choose the best payment processor that understands your business and industry well, then getting started with accepting online payments will be a lot easier.
Types of payment processors
There are three types of credit card processors that you can acquire. Carefully consider each feature and study how it can positively assist the operation of your business.
- Merchant Account + Payment Gateway
Combining a merchant account and payment gateway is a conventional method of accepting payments online. It is offered by major companies in the US such as SecureNet and Authorize.Net.
A merchant account is a type of business bank account that allows your enterprise to process and accept card transactions. A business partnership with a merchant acquiring bank is needed to facilitate all transactions and communications during an electronic payment.
On the other hand, an online payment gateway links your merchant account with your store. It assists the payment’s processing between your acquiring bank and the card issuer’s bank.
Using a merchant account and payment gateway comes with various charges. The good thing is, you can choose from other providers offering low transaction and charge setup fees.
Also, if you choose this type of payment processor, note that you are required to apply for both by completing certain forms and giving financial details of your business, such as tax returns, its payment model, the activity of your venture, and your banking information.
Your applications will be processed in a few days that can affect your operation. Upon approval of both, you are required to link your account to the payment gateway. After this, you must connect your gateway to your store, configuring it with tokens, API keys, and other risk management tools.
One of the advantages of availing the services of a payment gateway is it comes with great customer service. They can immediately assist you with all your concerns and offer tailored solutions.
- All-in-One Solutions
2Checkout and Paypal are popular all-in-one solutions that offer mobile credit card processing. They merge an account and gateway into a single solution, providing a fast and easy setup.
They accept all major credit cards with reasonable transaction charges. It is also one of the preferred online credit card processing for small businesses, as this type doesn't charge fees monthly, unless you add a certain feature, and during setup for basic accounts.
Before, some all-in-one solutions don't always offer an ideal checkout experience. Some customers experienced rerouting off a business’ website while paying for an item or service they availed. It caused them confusion and questioned the site’s security features.
Today, with the help of added safety and technology, the checkout process is faster and more convenient.
- Integrated E-commerce Platform offered by Etsy, Ebay and Shopify
Setting up an e-commerce platform is a good choice if you plan to receive a majority of payments online. These platforms have an automatic payment processor built in their system. Your customer’s Etsy, Ebay, or Shopify credit card processing is guaranteed safe and convenient.
To avail of their services, you just need to create an account, then set up your payment details. In setting up your store, you may use the features they already offer, or build your e-commerce website based on your preferences.
Other things to consider before choosing a credit card processor
Now that you’re familiar with the types of available credit processors your business can avail, listed below are some points that you must consider to help you narrow down your choice.
- Additional fees that you will encounter
Credit card processing comes with different charges. Always ask your payment processor what these are about, and always verify if there are other hidden charges.
The regular fees may include:
- Interchange fees - this ranges from two to three percent and will apply to every transaction.
- Monthly statement fees - charges that payment processor companies use to cover the expense for mailing your billing statement.
- Monthly minimum fees - Also known as “monthly minimum”, the majority of merchant account providers impose a minimum transaction fee in case the total transaction processing fees for a specific month do not add up to a minimum amount.
Note that the amount of a minimal transaction fee depends on the payment processor provider, but it usually costs around $10 to $35.
- The acceptable payment methods
Aside from honoring all major credit and debit cards, your chosen payment processor must also be versatile in accepting prepaid or gift cards and digital payments from Google Pay, Samsung Pay, and Apple Pay. Doing so will attract more buyers as you offer convenience through a variety of payment options.
- The security it can provide
Always consider a processor’s fraud protection as it can secure your business from many illegal activities present in the digital world today. Also, to avoid legal discrepancies, make sure that the processor of your customers’ data complies with the Payment Card Industry Data Security Standard (PCI DSS) and have the most recent certification.
- Must be compatible with the system you are currently using
If you already have a reliable point-of-sale (POS) system, make sure that your chosen payment processor matches with your current equipment.
Also, you must identify the specific need of your business. For example, if you only accept online payments, you have to avail of the service of an established processor known for their efficient and seamless system that you and your customers will benefit from.
Make sure to pick a processor that can provide everything you need. Availing services from two separate companies is time-consuming and could cost you a lot.
- How they can provide your business with an efficient customer support service.
Choose a company that offers reliable customer support 24/7. Issues such as billing concerns, processing of payments, technical error, etc. can happen anytime, causing disruptions in your daily operations.
Allied Payments knows exactly what online payment solution is best for your business. Talk to our team of experts to find the best solutions and get started today.