E-commerce Processing payments could be the most stressful component of running an online business. It not only keeps the lights on at your business, but it also handles critical consumer information. The benefits of picking a payment processing system that best meets your and your consumer’s needs can be significant: operational efficiency, client retention, improved revenue, and more.
What is eCommerce payment processing?
When a firm takes payments from clients via an eCommerce portal, the process is known as e-commerce payment processing. It’s done through a secure terminal, or gateway, which protects consumers’ sensitive financial information while still providing a channel for payments to be sent from them to the merchant.
What is an eCommerce Payment Gateway?
A payment gateway is a software program that allows for the safe transfer of card/bank information from a website to the payment network in order to process eCommerce payments. Then it returns transaction data and payment network answers to the website. Although online transactions seem to be quick and simple, multiple processes work together in the backend to transfer payments from buyer to seller in a flawless and safe manner.
Payment gateways are designed to make payment processing more efficient, secure, and convenient. Instead of sending money, the payment gateway approves monies sent to the vendor in a safe and secure manner for the customer. Payment gateways even adhere to PCI compliance criteria in order to avoid fraud, employing a variety of security measures as required.
How does eCommerce payment processing work?
Many online payments begin when the consumer submits credit or debit card information during the checkout process, which is commonly done via a form integrated with your website or mobile app. The payment gateway sends encrypted payment data input on your website to the processor. The processor then alerts the bank that issued the customer’s credit or debit card to check that adequate funds are available in the connected account and that the transaction is either allowed or rejected.
Key Points to Keep in mind While Choosing a Payment Gateway Provider
The following aspects should be addressed before making any choice to pick an eCommerce payment gateway provider, depending on the business and functional needs of the eCommerce firm:
Pick the Right Product
When selling items and services online, every website must have a payment gateway provider. It enables customers to purchase a product or service while making it easy for company owners to collect payments. To select the best product, businesses should assess how versatile their payment system is while keeping security in mind.
Card types that are permitted
The most generally used credit cards are Mastercard, Visa, and American Express. The majority of payment gateways accept all of these card kinds. However, if your clients often pay you with another form of a card, such as a debit card or a Diners Club card, you must ensure that your payment gateways handle that card.
As you are handling sensitive financial details while receiving online payments, the privacy of your payment gateway needs to be a major priority. Keep in mind that various payment gateways adhere to varying security requirements. Check that the gateway you select is PCI DSS level-1 compliant. Some gateways provide fraud detection and other screening capabilities to safeguard your business from unauthorized transactions.
According to a poll, more than a quarter of customers will abandon a transaction if they are required to create an account in order to finish it. If the checkout method involves the usage of a third-party shopping cart that includes an enrollment procedure, ensure that merchants may make it an optional feature that allows for “guest” checkout.
Similarly, the payment gateway should allow shops to remove unnecessary form information for a faster checkout experience. Big eCommerce companies anticipate that reducing redundancies, such as requiring customers to provide payment and shipping information even if their postal addresses are the same, would increase conversions by up to 50%.
Depending on their company’s demands, online payment gateway service providers give a variety of capabilities. Assume shops provide their goods and services all across the world. In such a situation, the payment gateway should offer a global solution and accept several credit cards, debit cards, and currencies from various nations. Payment gateways also have an influence on the efficiency of a website.
To securely handle payments, your website will require an SSL certificate, also known as a secure sockets layer certificate. An SSL certificate is a piece of code that is installed on your web server and adds a “layer” of security to online communication and transactions. The SSL certificate encrypts the connection when a client’s web browser accesses your company’s website, thereby safeguarding consumer information from prying eyes. After you’ve installed an SSL certificate on your website, check to see if your eCommerce payment provider is PCI (payment card industry) compliant.
Select a payment software company that has help ready to reply to your needs whenever you need it. 24/7 assistance is really beneficial, but businesses should exercise caution when advertising this feature. If the service is headquartered in a different time zone than your company, its help may be limited outside of work hours. This may slow the process of resolving urgent concerns.
Choosing the appropriate eCommerce payment processing system is one of the most critical decisions a business owner can make. To find the ideal solution for you, examine all of your business and client demands, as well as your financial situation. Detailing these concerns in advance and comparing them to the offerings of various providers is one of the most certain methods to make the proper decision.