It’s not too late to find success in the world of eCommerce. Recent industry reports predict the market will continue to grow, reaching around $2.3 trillion in the next four years.
If you’ve already started building your store, you’ve probably wondered how you’ll get people to pay for their goods. The answer is to use a payment processor.
Here is a guide to choosing the best payment processor for your online business.
What is a Payment Processor?
When you set up any online store, you’ll want a safe and trusted way for your customers to pay for their orders.
You could write some code from scratch to do this, but it’d be complicated and expensive. And you’d be reinventing the wheel, as the technology already exists.
That’s what we mean when we use the term payment processor. It’s a third-party piece of technology that you can integrate with your online store to make the end-to-end payment system secure and streamlined.
A payment processor carries out this part of a customer’s order when they buy from your online store:
- Capture the billing details from the customer, such as their billing address
- Authorize bank and credit card payments
- Transfer the funds from the customer to the retailer
- Securely store and process card details (known as PCI compliance)
Although most payment processors offer similar features, they all have advantages and disadvantages. So we’ll explore some of these features in a bit more detail.
Payment Processor Features
All payment processors offer the basic ability to manage payment transactions. But it’s worth looking at some of the fine print to help you choose the most suitable processor for your website.
Security will be at the forefront of your customer’s mind when buying online. So you must ensure this is one of your priorities when choosing a payment processor.
You’ll need a processor that offers PCI compliance, an independent and international security standard for online payment systems. Going for a reputable payment processor with an exemplary track record for security and modern encryption technology is vital.
Online credit card fraud and data theft may hurt your customer, but it will hurt a business brand even more if you aren’t fully secure.
Customers have high demands when it comes to their online experience. They expect websites to be fast, and that includes the payment process.
A slow card transaction could encourage a customer to cancel and click back before the payment completes. Click the following link to learn more about how credit card transactions work.
Speed is also crucial for you as the retailer, specifically, speed of payments. You’ll want to ensure that payments reach your bank account as quickly as possible to help you maintain a healthy cash flow.
Ease of Use
There are two factors to consider when finding a usable payment process. First, is it easy for your customers to use? Second, is it easy for you to use and manage?
The best way to establish this is to test demos of different payment processors. You should look for any feature that gives the customer a feeling of convenience.
For example, some platforms offer a one-click payment, meaning the customer won’t have to enter all their details. Easy transactions make people more likely to buy.
You could also look at customer reviews to get a feel for any problems other retailers have with the platform.
An easy-to-use platform will help you secure more sales. That’s because it will help you deliver your customers a streamlined, quick, and easy buying experience.
How easy is it to buy and set up the payment processor? A simple solution will help you launch your payment system faster, so you can start making money immediately.
However, if you have a complicated online presence (for example, perhaps you sell B2B or handle high-value transactions), you might need to go for a more complex solution, which might take a bit more time to set up and customize.
You should always look for a payment processor with premium customer service support.
If you get a problem with your payments online and customers can’t buy from you, you’ll want a reliable company that will investigate and remedy the issue swiftly.
Good customer support can also mean excellent training to get you up and running. Technical support can also help you get the platform working correctly on your website.
It can be hard to compare the like-for-like costs of payment processors. That’s because you will often see upfront costs, like setup fees, monthly fixed costs, and per-transaction costs.
It’s the latter than can often make your costs challenging to predict, as it will depend on what you sell.
If you’re a new business, you could find it hard to choose the fee that gives you the lowest overall price but try to use some estimates as best you can.
There could be situations that arise in the future where you’ll need to switch your payment processor. A good example is if you decide to change your eCommerce platform.
However, some payment processors come with lengthy contracts, and it will be more expensive to move in this situation than with a provider who offers rolling monthly contracts.
Third Party Integrations
Finally, head to the websites of payment processors, as they will typically list their standard third party integrations. A typical integration means it will work with your online shop without you having to do any coding or heavy customization.
For example, suppose you run your website on Shopify. You could prioritize platforms that integrate directly with Shopify, which will help you get set up faster and at a lower installation cost.
Find the Best Payment Processor Today
Your online reputation could make or break your eCommerce business. So you must always ensure you have a secure and reliable payment system. Use this guide to choose the best payment processor today to get your business off on the right foot.
Head to our business section for more tips on launching and growing your online store.
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