One key business solution merchant website owners look for is a dependable payment processor to accept payments for online transactions. To the uninformed, however, payment processing is a complicated subject. There are lots of complex issues to begin with, specifically with regard to the fundamentals of payment processing, payment gateway configuration, and some 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 actually a third-party company, like a bank, which connects your e-commerce software to your processing account. This real-time facility lets you accept charge cards, debit cards, along with other types of online payment. Though not essential, a payment gateway has many benefits, including:
• You will find a feature which will provide your customers real-time feedback on their payment status, above all in the event the payment card is not really accepted for any excuse.
• You ride on speed and efficiency. In case your business conducts large transactions, then you benefit by speed, efficiency, and significantly lower processing fees.
• You start out straightaway. No waiting time is needed to start your business. A payment gateway starts accepting debit or credit cards immediately. To summarize, payment gateways accepts information, encrypts it, and transmits it over the web.
Setting Up Gateway Configuration
Putting together your payment gateway essentially consists of two steps.
• Step one involves your merchant account and your gateway provider. You should provide access to the gateway provider through making available all needed information.
• Within the second step, the payment gateway will configure with the payment processor. All that a payment processor will ask you would be to log in, proceed to configuration and payment methods, and 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 make real-time payment during actual checkout. Your decision will depend upon your business model. Real-time payment necessitates that you ship the merchandize within a specified period. In case you are unable to achieve this, choosing the other alternative is a better option. The choice of “Authorize Funds” allows you to put a short-term hold on the customers’ funds till you ship your product or service.
Understanding Third-Party Processors
Simply put, a third-party processor is really a vendor who charges your customers’ charge cards on your behalf and then transfers the cash electronically for your account. Many online merchants choose to have the third-party processor and the payment gateway. By doing this, you can ensure your prospective buyer has his or her preferred payment method and is not turned away. Now that you have the basics, we can concentrate on what features the best payment processors have.
A good payment processor
• Provides processing account services efficiently. Good customer service is essential. Accessibility to 24×7 help provides plenty of reassurance that there is somebody to troubleshoot your problems.
• Posseses an effective antifraud solution in position. You hear a whole lot about credit card frauds happening today. 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 put in place to confirm the buyer actually owns the credit card. • Offers you accurate financial information.
• Has a recurring billing feature. This means automatically collecting payment installments after having 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 a big selection of rates, such as discount rates, chargebacks, or transaction rates, in addition to application fees, ongoing fees, and settlement fees. Finding the right payment processor will entail evaluating all financial aspects of the costs and fees.
• Is dependable in all respects. Any weak link within the payment processing system means loss in customer confidence, and this results in loss of business. There are lots of dependable and well-known payment processors out there. All you cgigrs to accomplish is measure the benefits and drawbacks each processer has.
A few of the well-known names in the market are Google Checkout, PayPal, MiraPay, and Authorize.net, to name a few. They have survived competition and they are thriving because they have built customer trust by offering a reliable, secure, and fast payment environment.