Taking a leap and starting your own business indeed requires numerous preparations. So, after the decision is made on what products you’ll sell, the next thing to consider is the eCommerce payment processing and what tools you’re going to use. It’s an essential step unless you’re thinking about running a cash-only enterprise. If that’s not the case, then you surely need to check how credit card payment processing for e-commerce works.
What Is eCommerce Payment Processing?
There are numerous small business ideas and even more different types of business, so if you have inspiration and are thinking about starting your own enterprise, now it’s the best time to do it. However, if you want to survive in such a competitive market like it’s nowadays, you need to have good customer service. All this means you’ll have to ensure the customer who makes an online purchase has an effortless experience.
And to achieve that, you should know what payment processing for e-commerce is first. To simplify things, it’s practically the process when an electronic payment is accepted for an online transaction. Besides that, you’ll have to find the most reliable merchant processing company and consider all the fees there might be, like credit card convenience fees.
Know What Payment Processor, Payment Gateway, and Merchant Accounts Are
Probably one of the biggest mistakes enterprise owners make is not knowing the three most important elements of e-commerce payment processing. And even though every enterprise is different, the objective is to ensure secure transactions and make virtual experiences as seamless as possible. So, here are the three elements you should consider:
A mediator between the merchant account and the store.
Customers use platforms like Shopify, Magento, OCC, and others, to make online purchases, and the payment gateway is the online service integrated into these platforms.
Connected to your enterprise, and it’s there to accept different card types.
What Factors to Consider When Choosing the Most Suitable Processor?
When you understand the importance of this topic for your enterprise, you surely have to know how to choose the perfect processor. It will become an even more relevant question when you consider that more than 80% of US adults own one or more credit cards, according to the Federal Reserve. So, check the following factors you definitely should take into account:
#1 PayPal – One of the Most Reliable Credit Card Processing Companies for Seamlessly Transactions
If you’re looking for transparent and fast transactions, PayPal is among the best. Almost everyone heard of this company, founded in 1998. So, we can easily say that they have many years of experience and have gained numerous entrepreneurs’ trust so far. And it’s not just because PayPal makes payments a lot easier when it comes to handling an enterprise. It’s also one of the most secure options out there.
This means that after you consider all the best places to open a business, you should know how PayPal actually works. The good news is that it can be integrated into your website, which makes it truly flexible – you can use it to process transactions via the physical store and app and not only via the online store.
PayPal Isn’t One of the Most Cost-Effective Options But Is the Easiest to Use
Many entrepreneurs see PayPal as a staple in the whole online marketplace because customers don’t have to provide their credit card information to online sites. It has also become an essential option for making transaction processing a breeze, especially if you’re new at online selling. Its effortless settings make it the most suitable for newbies.
However, for merchants, it’s surely not the most cost-effective option to choose. In fact, you should definitely check at what price you get to enjoy all of its features. Besides merchant services rates, there are a few merchants who will pay once the purchase has been made with PayPal, and it’s 2.9% with 30 cents per sale. But, when you consider the hassle-free integration to your website with a gateway for each customer that eases the whole transaction, fees surely won’t be on your mind.
In the video below, check out some pros and cons of using PayPal if you’re still not sure this is the best option for you.
#2 Square – A Great Solution for Offline and Online Selling
If you’re looking for some PayPal alternatives, then you surely stumble upon Square. It’s a great solution for all newbies in the eCommerce world. Square payment fees are cheaper, but on the other hand, its technical capabilities are highly-rated and are able to handle your needs. And, unlike PayPal, you won’t be charged any monthly fees when wanting to use all of the tools. This means you’ll have more budget for some other fees, like PCI non-compliance fee and overall small businesses tax deduction.
And when it comes to expanding your business, Square is a very popular option for small company owners. And one of the reasons is that the physical card isn’t needed for in-person purchases. Instead, mobile POS apps can be used to scan QR codes. And probably the best feature is the fact it’s user-friendly. You can manage all kinds of transactions mobile, in-store and online, from just one account that’s free.
#3 Stripe – User-Friendly Processor With Numerous Different Features
Stripe is another popular and second-largest option you can find. In fact, many consider it a leading mobile app for online transactions, making it a perfect replacement for PayPal. Its greatest feature is the possibility to customize e-commerce payment options and the fact that it’s compatible with every platform. However, there’s still a lot of room for improvement when it comes to credit card mobile readers.
Also, one of the great jobs Stripe has done is effortlessly solving any issues that occur. And they did it by simply organizing the customers and keeping transaction history updated. So, if there’s any kind of problem, it will be quite easy to find the transaction in question by simply finding the customer.
Why Is Stripe So Popular, and What Are Downsides?
Nowadays, when online businesses are thriving, having an e-commerce tool that will process payments is more important. And if you’ve never used one, then you surely will look first for the most popular ones, right? Stripe definitely is one of them. And here are some of the reasons why:
- Easy to sign up the account,
- Effortless when integrating a website, whether it’s CMS like WordPress and Shopify or a native-coded site,
- Excellent user experience with numerous different paying methods,
- Secure and safe.
When it comes to popularity, Stripe surely is well-known in the market. However, the reviews and comments are mixed. For starters, Stripe isn’t a platform suitable for all categories. In other words, it’s not universal and doesn’t have the much-needed personal assistance, which means you’re on your own when it comes to customizing it.
Stripe has another disadvantage – its in-store and mobile transactions are a bit more pricey. However, fees for online transactions match the ones PayPal has. Also, with Stripe, there are offers for recurring payments at competitive fees.
#4 Venmo – Send Money to a Recipient Directly Without Transaction Fees
If you need an app that will satisfy both categories – those who want to use it for personal purposes and those who want to use it for their businesses, then Venmo isn’t the greatest option. For example, it doesn’t have all the features that PayPal has.
However, although it doesn’t have all the elements other apps have, in the last few years, it has become more popular, especially during the pandemic. In fact, it’s become one of the highest-ranked apps, with more than six million downloads. And the reason is quite simple – you can send money to a certain recipient without a worry about transaction fees. However, there’s a payment limit – of $3,000. Compared to PayPal’s $10,000, it’s significantly lower.
That’s why this is a peer-to-peer application for payments, and many people say it’s a millennial’s favorite. In fact, there’s even the phrase Venmo me which is a common expression in the vocabulary of millennials.
Is Using Venmo Safe?
Before you accept Venmo, you should know one crucial piece of information – there’s no protection offered for sellers or buyers. It’s mostly because this app was designed for using it among people of trust and friends. But if you consider that each mobile and the digital transaction is risky, then this shouldn’t be a step back if you’re relying on the Venmo app. However, having this info in your mind, it’s best for you not to store larger amounts of money on it.
As technology improved, Venmo did a lot to fix the safety issues they had. In fact, nowadays, Venmo is relatively safer to use than before. We should thank data encryption that protects customers’ accounts. And for extra security, Venmo users can see the PIN code each time they log in.
#5 2Checkout – Maximize the Revenues and Ease the Online Sales
Each customer who wants to know the secret to some of the most successful small businesses should have all the information and services available. But, not only do you need to think about high-risk businesses, but also about a high-risk merchant account. However, when you have all the right answers, you’ll have to accept the fact that a suitable tool for e-commerce payments will be more than just needed.
So, if you’re looking for a company that covers international markets but with cost-effective processors, then 2Checkout could be the best option for you. Its platform is surely the most popular one for its online shopping carts and is designed to meet the following needs:
- Global payments acceptance with supporting over 200 countries,
- Compliant and safe gateway in 15 different languages and 87 currencies,
- Digital commerce from mobile and online platforms,
- Subscription billing
- Financing service with global tax.
Know the Best Credit Card and eCommerce Online Payment Processing for Your Business
Everyone who has a company or wants to start one surely wants to be successful, right? And to achieve that, you need to accept one simple step – payments. When you understand how the whole process works and what are the features you just must-have for an effortless payment solution, trust us, other things will be much easier.
And besides choosing the merchant that will suit both sides – you and your customer, it’s also important to have reliable merchant services credit card processing company as well. That way, you’ll be ready to step into the world of successful businesses.