One key business solution merchant website owners always look for is a reliable payment processor to accept payments for online transactions. To the uninformed, however, payment processing is a complicated subject. There are many complex issues to begin with, specifically pertaining to the fundamentals of payment processing, payment gateway configuration, and a few elements of third-party payment processors. Before we get down to the best payment processors, here are a few essentials about payment processing itself.
About Payment Gateways
A payment gateway is a third-party company, like a bank, which connects your e-commerce software to your processing account. This real-time facility lets you accept bank cards, atm cards, as well as other forms of online payment. Though not essential, a payment gateway has several benefits, such as:
• You should have a feature that can provide your prospects real-time feedback on their own payment status, most significantly when the payment card will not be accepted at all.
• You ride on speed and efficiency. In case your business conducts large transactions, then you certainly benefit by speed, efficiency, and significantly lower processing fees.
• You start out straightaway. No waiting time is needed to start your company. A payment gateway starts accepting debit or credit cards immediately. To summarize, payment gateways accepts information, encrypts it, and transmits it over the internet.
Establishing Gateway Configuration
Putting together your payment gateway essentially contains two steps.
• Step one involves your merchant account and your gateway provider. You need to provide access to the gateway provider simply by making available all needed information.
• Inside the second step, the payment gateway will configure with all the payment processor. All of that a payment processor asks you is to log in, go on to configuration and payment methods, then select the payment gateway. You may ask whether you can configure different checkout choices. Yes, you can. You can either authorize funds or ask the customer to help make real-time payment during actual checkout. Your final decision will be based upon your business model. Real-time payment requires that you ship the merchandize in a specified period. For those who are unable to achieve this, choosing the other alternative is really a more sensible choice. The choice of “Authorize Funds” lets you put a short-term hold on the customers’ funds till you ship your products or services.
Understanding Third-Party Processors
In other words, one third-party processor is actually a vendor who charges your customers’ charge cards on your behalf and after that transfers the amount of money electronically to your account. Many online merchants would rather have both third-party processor as well as the payment gateway. This way, you can ensure that your prospective buyer has their preferred payment method and is also not turned away. Now that you possess the basics, we can give attention to what features the very best payment processors have.
An excellent payment processor
• Provides credit card merchant account services efficiently. Good customer support is vital. Accessibility to 24×7 help provides a lot of reassurance that there is a person to troubleshoot your problems.
• Comes with an effective antifraud solution in place. You hear a lot about credit card frauds taking place today. Credit cards are stolen, lost, or misused by false information. The very best payment processors verify billing and shipping addresses with those provided by MasterCard/Visa. Furthermore, card security codes are put in place to confirm that this buyer actually owns the credit card. • Offers you accurate financial information.
• Has a recurring billing feature. This simply means automatically collecting payment installments following a fixed duration.
• Have reasonable rates and fees. However, you must remember that each payment processor may have different groups of rates. For example, they may have a variety of rates, including discount rates, chargebacks, or transaction rates, as well as application fees, ongoing fees, and settlement fees. Finding the right payment processor will entail evaluating all financial elements of the costs and fees.
• Is dependable in most respects. Any weak link inside the payment processing system means loss of customer confidence, and this results in loss of business. There are lots of dependable and well-known payment processors available. All you cgigrs to perform is evaluate the benefits and drawbacks each processer has.
A few of the well-known names in the industry are Google Checkout, PayPal, MiraPay, and Authorize.net, for example. They may have survived your competition and they are thriving simply because they have built customer trust by offering a dependable, secure, and fast payment environment.