Like brick and offline shoppers, online shoppers also want to get some benefit from online shopping. Getting the product quality is icing on the cake but having a wide range of payment option make the customer comfortable and safe and hence, they increase their online shopping. Accepting credit and debit card on an online store increase the sales because it is more convenient to use rather than cash on delivery. It provides easy credit card processing. However, many business owners face some problem—confusion has arisen due to different choices available for payment.
Let me explain two methods of credit card processing:
Real-Time Online Credit Card Processing
In this method, the customer enters the card details and other payment information and it is processed through an online payment gateway. It takes few seconds for processing and payment deducts from a debit or credit card right away. It requires a high cost for credit card processing.
Card Present or Swiped
There is a credit card terminal or mobile card reader available at the retail shops where merchant collects the card details by swiping the card through it. Generally, people card swipe for a lower amount than an online transaction.
How Online Business Can Access Payment
For an online business, they need to have an online payment gateway and merchant account to accept the online credit and debit card. Moreover, just like other business owners, must research about the merchant account provider and select the one that feels right for you. Many local banks also provide merchant account facility, moreover, if you already have credit card processing machine, just ask the account provider to add this facility to an online store. With credit card processing, you can shop at almost all the online stores and pay online bills.
Considering credit cards it has been the most increased and convenient mode of payment in today’s world. If you have your own website or thinking to build a website and not yet had fixed the option for accepting debit and credit cards then you should, because you can’t think how much sales you will be losing not keeping this option as most of the customers pay online and think this is a secured mode of payment to pay for goods and services.
Why to do it?
In today’s world credit card has become the reliable and trust-able mode of payment to pay for goods and services. The development of technology has drafted changes in the minds of customers as well as the vendors, as discussed earlier by fixing the option of accepting debit and credit cards online you will not lose the current customers as well as the upcoming/future customers.
Just in terms of websites, debit and credit cards allow the vendor to take care of three type of customers.
1. The general customer: This is the average customer who wants to shop online goods and services from his desktop. After all, why to stand in a long queue in a retail or mortar store when there is option to pay online itself.
2. Impulse buyers: After stumbling on the website the visitor finally decided to buy the product which are in front of him/her. The plastic card seals the deal of the purchase he/she will make.
3. International customers: The internet has brought the world closer as well as your customers at doors, even if your customer is overseas. Initially differences in currency was the major issue in the past, but now why to wait for a check being cleared from your customer side when there is an option of paying it online on your website. This helps in not losing the customer just because he/she is residing in abroad.
Opening your business to debit and credit card payments
There are two ways of accepting plastic money on your website.
Using the merchant account: The merchant account helps you to accept payments from your customers via debit or credit card. Whether you create your own merchant account or enter into an agreement with a payment processor, who in turn operates merchant account, but you still need to have a business bank account. However, you need to have your merchant ID. Actually it will become the portal which will allow you to accept or decline your customer credit card payment. In essence it will become your virtual vendor terminal.
Using payment gateways: There are various independent companies who will accept credit and debit card payments from your customers on your behalf but take a percentage or charge a fees. They are also called third party merchants.
Which is the best method for you?
The methods of accepting credit card payments is entirely up to you, because both the methods has its own advantages and disadvantages. The cost of setting up a merchant account with a credit card processing is much higher. In fact, to use their services as an added incentive most of the third party merchants don’t have a setup fees at all.However, the transaction fees is much higher in third party merchant than merchant account.
If you are not sure how much money you will make on website, then the best method is to choose third-party merchant account. To just “test the water” third-party merchant accounts is the great way to go. However, this method involve the merchant also as it will be a time saver. The involvement of the merchant will be at the end of each transaction just receiving the payment. These merchants include PayPal, Digital Rivers and others.
Debit and credit cards have highly increasing become the preferred methods to pay for goods and services. As a merchant, we should be up to date with the current technologies and strategies available in the market. It is because when it comes to making an online payment, ease of access and security directly affect sales.
Keeping with the current advancements in technology in spite of the industry can be hard. The new payment gateway integration’s are one of the major areas, which we never let to get left behind, as offering security for our customers is a top priority. As a merchant, we should implement the most important card payment strategies now.
Importance of card payment strategies:
Developing and implementing the card payment strategy will help us perfectly plan for the upcoming years and keep speed with their competitors, as well as enhance their financial performance. Below, we mentioned some of the benefits of implementing card payment strategies now.
• Greater revenues
• Enhanced security over cash
• Minimized costs associated with the handling cash
• Improved reporting when compared with cash
Plenty of consumers are starting to use credit and debit cards because of its convenience similar to cash. Therefore, we must implement many new payment strategies to improve their comfort and flexibility in using cards.
List of payment strategies need to implement now:
We need to know about the following technologies and should work to implement them as well.
The biggest vulnerability with the card payment is thieves easily get access to use magstripe information. It is because of the data on the black strip of the card is unprotected. Europay, Mastercard, Visa (EMV) chips are one of the biggest steps towards eliminating this issue.
Radio Frequency Identification (RFID) is touchless card payments and it lets a card to recognize itself & make a transaction with no physical contact over a short distance. Apart from these, you can implement mobile wallets and NFC.
Now accepting checks by phone is as easy as accepting credit cards payments. By this facility, everyone gets ability to accept check through their mobile phones. You are able to accept checks by phone or online and also can deposit them on the same day. This technology also helps you to process checks to U. S. and on the same day, you can receive your deposits safely and securely from any device from all over the world.
There are some benefits of accepting checks via phone and we are providing you top twelve benefits here:
You can resubmit your NSF items automatically on any decided date and can get instant approvals for your payments.
Last minute payments, like convenience fee or overdue payments, can also be done easily by you.
You can increase sales reliably via offering an additional payment option to your customers.
You no more need to restrict yourself to particular industries for such tasks as it is web-based and a friendly gateway for users.
It improves cash flow. Also helps you to get funds within 48 hours of access.
Shipping the products faster with not any conditions of cash on delivery as such.
You can easily do online integrations as well as can set the dates of paying according to you.
Accessing is safe in check by phone by assigning your username.
It allows you to accept and deposited checks online on the same day.
You are able to access checks by phone at anywhere in the world through any computers or device.
There are not any limits on chargeback and admin return policies.
Virtual terminal and batch processing kind of benefits are also can help you to access your online checks accepting.
So you can now enrich your cash flow by accepting check payments via your own cell phone which is an instant way to check your transactions.
Business is off two types high and low risk, different size small, medium and large business entity. Businesses have different types of goods and services to offer or sell. Some goods and services are falls under special category which are known as high risk businesses. Any goods and services in which your business is trading whether it is fitness supplements online dating services, tobacco, money laundering, etc. is known as high risk businesses. These businesses face many issues with merchant payment processing system, because of chargebacks and risks. Companies with processing revenue lower than $1.2 million annually will find certain issues securing a high risk payment processor because most providers are focused exclusively on larger businesses.
Demonstrate Substantial Capitalization
One of the best ways to secure a payment processing provider, even for a high risk merchant, is being well-capitalized. With sizeable capital resources, underwriters and banks are more willing to provide payment processing services. For a business, substantial available capital signals to payment processors that your operations will be funded and any issues regarding fulfillment or payment can be addressed in a timely manner.
High risk businesses without money in the bank are at a particular disadvantage when seeking merchant payment processing services. Even with nearly six figures in monthly revenue, many banks and underwriters will refuse the business of many high risk industries, such as online gaming, credit rehabilitation services, and nutritional supplement providers. Without capital in the bank, underwriters and banks will worry that any issue, like a product recall or data breach, will result in significant financial losses.
The payment made by credit card involve the transfer of funds to a merchant account and you (the merchant) directly holds the payment in their bank. If you want to accept the payments through credit cards for your online store, you will need either a merchant account of your own or the services of a third party processor like PayPal.
Some quite different types of options are available while choosing online merchant account. Some of the organization or companies charge reliable fees for merchant account solutions while other charge enormous fees for setting up and processing fee.
Check out all the terms and condition while selecting the merchant account that is right for your business and suits your all unique business needs.
Our radiantpay.com provides an ideal solutions to Integrated a merchant account into your website. It also allow to accept credit card payments directly through your website and deposit payments directly into your personal or business checking account automatically and some time on same business day. We have relaxed transaction fees and monthly account maintenance fees. It’s easy to sign up, and once you are approved it’s easy to integrate your payment gateway page and only takes a few minutes to get started.
Merchant Account Solutions For Small Business Organizations
Governing a small business organization in this highly competitive world is not so difficult with online merchant account. If your business is on the internet and want to sell your products online you need to have an online merchant account and a payment gateway processor to accept payments via credit cards, debit cards and PayPal accounts. A merchant account is the right investment for a small business and retailer who need to accept credit card payment on their websites. Processing debit cards, accept checks, orders over the phone and generally make the ordering of products a smooth experience for the customer.
For startups and small business organizations it is very important to serve better services and experience over the online purchase to the customers. A secure and fast payment gateway services will gain the valuable trust and build a sound image of your online business in the minds of customers, resulting in higher returns and more profitability in business. The merchant account comes with all features that is essential for any online business. Without a merchant account and payment gateway you will not be able to run your online business.
Providing better services is the way to give a high payment security to your customers, the data they provide while purchasing a product online should be kept confidential. This will maintain good and close contacts with the merchant and customer in the future.