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 perplexing subject. There are lots of complex issues to start with, specifically regarding the fundamentals of payment processing, payment gateway configuration, plus some facets of third-party payment processors. Before we get down to the best payment processors, here are a few necessities about payment processing itself.
About Payment Gateways
A payment gateway is a third-party company, like a bank, which connects your e-commerce software in your processing account. This real-time facility lets you accept bank cards, debit cards, along with other types of online payment. Though not essential, a payment gateway has several benefits, such as:
• You will find a feature which will provide your customers real-time feedback on their payment status, most significantly if the payment card will not be accepted for any excuse.
• You ride on speed and efficiency. Should your business conducts large transactions, then you definitely benefit by speed, efficiency, and significantly lower processing fees.
• You start straightaway. No waiting time is needed to start your small business. A payment gateway starts accepting debit or charge cards immediately. To summarize, payment gateways accepts information, encrypts it, and transmits it over the internet.
Setting Up Gateway Configuration
Setting up your payment gateway essentially consists of two steps.
• The first step involves your credit card merchant account along with your gateway provider. You need to provide accessibility gateway provider 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 would be to log in, proceed to configuration and payment methods, then pick the payment gateway. You may ask whether you can configure different checkout choices. Yes, you can. You can either authorize funds or ask the client to help make real-time payment during actual checkout. Your decision will depend upon your business model. Real-time payment mandates that you ship the merchandize within a specified period. For those who are unable to do so, picking out the other alternative is actually a more sensible choice. The choice of “Authorize Funds” allows you to put a temporary hold on the customers’ funds till you ship your product.
Understanding Third-Party Processors
Simply put, a third-party processor is a vendor who charges your customers’ credit cards for your benefit and then transfers the money electronically for your account. Many online merchants choose to have both third-party processor and also the payment gateway. By doing this, you can ensure that your prospective buyer has her or his preferred payment method and is not turned away. Now that you hold the basics, we can focus on what features the very best payment processors have.
A good payment processor
• Provides merchant account services efficiently. Good customer support is essential. Availability of 24×7 help provides lots of reassurance that there is someone to troubleshoot your problems.
• Comes with an effective antifraud solution in place. You hear a great deal about bank card frauds going on nowadays. Charge 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. In addition, card security codes are set up to confirm that this buyer actually owns the card. • Gives you accurate financial information.
• Features a recurring billing feature. This basically means automatically collecting payment installments after a fixed duration.
• Have reasonable rates and fees. However, you must remember that every payment processor may have different groups of rates. For instance, they may have an assortment of rates, such as discount rates, chargebacks, or transaction rates, along with application fees, ongoing fees, and settlement fees. Choosing the best 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 lack of customer confidence, and this results in loss of business. There are many dependable and well-known payment processors out there. The only thing you cgigrs to perform is assess the benefits and downsides each processer has.
A number of the well-known names in the business are Google Checkout, PayPal, MiraPay, and Authorize.net, to mention a few. They may have survived your competition and they are thriving because they have built customer trust through providing a dependable, secure, and fast payment environment.