A sale is not a complete sale until the funds change hands. To get in on the $601.5 billion (and boosting) of retail purchases that perform via the internet. Your eCommerce business needs to accept credit card payments online.
Small businesses can accept credit cards online by using an online payment gateway, setting up a POS system with a merchant account, or using a mobile card reader to accept credit card payments online via a mobile app. Understanding how to accept card payments online can assist small businesses to enhance their sales. Improving cash flow, and offering a better experience for their customers. But recent research found that 55% of small businesses in the US don’t accept card payments online.
Small businesses interested in taking credit cards first have to do some research and decide what credit card payment modes work best for them. These are the moves to follow to initiate processing credit card payments:
Firstly, decide how you’ll enable your customers to pay using credit cards. These are the three primary ways to accept online credit card payments.
If you are a freelancer who usually executes business with customers remotely via email and mobile phone. Also accepting online card payments may be the only way your small business needs. If you have a physical store that markets products to customers. You’ll have to take in-person credit card payments at your online store.
And if you are a contractor or landscaper functioning on-site for your customers. A mobile card reader may be the most simple payment method since it enables customers to pay from the job website with a card reader powered by your mobile phone.
After knowing how you’ll take client credit card online payments, you will have to prefer a merchant service provider. Merchant service providers are companies that offer businesses the products and services required to take credit and debit card payments. When assessing merchant service providers for your business, it is necessary to ask yourself the given questions:
Select a merchant service provider that fits the exact requirements of your business and charges fees you are easily paying.
A payment gateway is a technique that enables merchants to process the transaction including credit cards, debit cards, and alternate payment methods such as eWallets. The term “payment gateway” also consists of physical tools like credit card terminals. So professionals distinguish between payment gateways and online payment gateways.
In this blog, we will concentrate on online payment gateways which offer the software eCommerce merchants require to receive payments via their websites.
How does an online payment gateway function? Here is the procedure a payment gateway performs to assist a merchant in accepting credit card online payments:
This complete procedure and up to the settlement is actually immediate. (On the other hand, settlements can take some days). The payment gateway serves as a link between your customers, your website, and the payment networks that perform online funds transfers possible.
When an online payment gateway enables merchants to accept credit card payments online via their websites. Even the payment cards are not the only way customers will prefer to purchase your products.
To accept credit cards online, you will have to sign up for an online credit card processing service. This service functions by processing your customer’s online payments for you and assessing a processing fee for every credit card transaction your business receives. If you prefer a cloud-based accounting service. Maybe you already have the facility to accept online credit card payment solutions via app integrations within your online accounting software.
To accept in-person credit cards, you will require a POS (point-of-sale) system. A POS system consists of hardware (like a credit card reader) and software to accept in-person credit card payments. Customers can insert or swipe their credit/debit card in a card reader and the transaction will instantly be authorized or rejected. After the approval of a transaction, your merchant account will then accept the funds. And then forward them to your business bank account within a few days.
To accept mobile credit card payments, you will require a mobile card reader. A mobile card reader is a movable device that pierces into your smartphone and teams with a credit card app to accept credit card payments online anywhere, as long as there’s an available internet connection.
Accepting online credit card payments delivers leniency and convenience to your customers and can also provide advantages to your business. The advantages of receiving credit card payments for small businesses are:
Credit card transaction fees are assessed by the payment processor every time a business takes credit card payments. There are two kinds of fees assessed for every credit card payment that’s performed: the processing fee and the transaction fee.
The processing fee is an amount charged for every payment on the basis of the business’s average transaction amount. Whereas, the transaction fee is a flat fee assessed every time a business accepts credit card payments.
In this digital market, it is familiar for most online businesses to accept credit card payments online. Moreover, credit cards are a fast and easy way for customers to pay for products and services. However, businesses can take advantage of improved cash flow and sales ratio. While there are some risks and charges included in using this payment mode, the advantages mentioned above in this article overshadow those scams. Contact Instantcharge today if you are interested in knowing how we can assist you in protecting your customer’s sensitive payment details, following PCI DSS compliance rules, and boosting your business.
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