Given the rise of mobile wallets and online banking, it’s no surprise that ecommerce has been steadily increasing in popularity as well. According to Statista, $504.6 billion was spent on physical goods online in 2018 alone. The revenue from online retail sales is expected to continue to rise to $735.4 billion by 2023. That’s why choosing the right ecommerce credit card processing provider is so important. When your online payment methods are simple and stress-free, your customers will trust that their payments and card information is secure and they will be happy to frequent your business.
Because online retail requires the use of credit or debit cards, your business will need to implement an online checkout. This online checkout page will process the payments from your customers and then transfer the funds to you. Each month, you’ll receive a merchant statement. This works in much the same way as an e-statement from the bank that breaks down your monthly credit or debit transactions.
As a merchant, you’ll want to understand how the ecommerce credit card payment system works. Having a grasp on how the system operates and being aware of how your merchant statements break down your fees and consumer transactions will make you a smarter online retail owner.
To help you get started, we’ve compiled a list of things you should consider and questions you should ask to help you set up credit card processing on your website.
How to accept credit card payments on your website.
Whether you’ve been in business for quite sometime and want to offer your products online, or you’re hoping to get started as an online-only merchant, you want to make online payments simple and secure for your customers. First, you’ll need to choose an online merchant services provider and set up a payment gateway on your website. A payment gateway is what allows your website to accept and process credit card payments.
Similar to how payments via NFC readers and digital wallets in physical stores work, virtual payments and ecommerce merchant processing also uses encryption and tokenization to safeguard you and your customer from fraud.
Stay up-to-date on market trends.
Just as consumers are changing the way they pay because of new technology and advanced security, you should also be offering the most straightforward, easy-to-manage payment system possible. This means you’ll need a vast knowledge of how ecommerce continually adapts to consumerism.
Desktop and mobile accessibility are a must. Not only are more consumers purchasing goods online than ever before, almost 35 percent of those ecommerce sales happen on mobile devices, according to BigCommerce. That means your online retail platform will need to offer seamless online payment acceptance whether your customers are shopping on a laptop, tablet, or smartphone.
Your business’ online checkout should reflect the payment options offered in brick-and-mortar shops too. While you can’t accept cash online, you’ll want to offer your customers as many ways to pay including credit, debit, digital wallets, PayPal and more.
How to build customer confidence.
How you set up credit card payments on your website says a lot about how seriously your company takes the protection of your customers’ sensitive information. It’s important that you be as transparent as possible with your customers. Throughout the purchasing process, keep your customers informed of the advanced security that is used when it comes to accessing their cards or digital wallets to set their minds at ease.
When your customer purchases a product from your virtual store, he or she should feel comfortable with entering credit card information on your website. This means they should be reminded that their information will not be shared with or sold to any third parties. Buyer confidence when it comes to ecommerce credit card usage enhances customer satisfaction. Online shopping experiences should be convenient and the checkout process should be effortless and safe for your customers.
Choosing a payments partner.
Now that you have an idea about how ecommerce credit card processing works, you’re probably curious about how to choose a provider. When you’re researching payments companies, if you can answer yes to the following questions, that’s a good sign it’s a good match for your business.
Does the processor meet PCI compliance standards?
It’s crucial that any ecommerce payment processor you choose has security and fraud prevention at the top of their priorities list. To establish a common basis for secure online payments, the major credit card brands (Visa, Mastercard, and American Express) set forth standards called the Payment Card Industry Data Security Standard (PCI DSS). Ecommerce credit card processors must adhere to these standards for accepting payments, transmitting card information, and processing transactions. These standards hold companies accountable for keeping customer information safe during the window of time when payment gateways must store credit card information while the payment is being processed. If the merchant services company you want to partner with is PCI compliant, that’s a good sign the company can be trusted.
Is your provider’s back-end processor compatible with your software?
Disjointed websites that are half out-of-date, half up-to-date often leave customers with the impression that your business is not fully knowledgeable on how to maintain its online presence. Because so many things involve the internet nowadays, a fully functioning website is a must. When your online consumers are ready to pay, the process should go as smoothly as a credit card swipe in a physical store. Your ecommerce platform should reflect the design of your website and its software should work seamlessly with what you currently have in place.
Interested in learning more? Contact the experts!
At North, we’ve been partnering with merchants to help them grow their businesses since 1992. In fact, we help hundreds of thousands of merchants process more than $45 billion in transactions each year. We know that hassle-free payment processing is a vital part of how you conduct business and we’re here to make it as easy as possible for you to identify the customized solutions that are right for your particular business. If you’re interested in learning more about how our ecommerce credit card processing works, email us today. Or, call 877.840.1952.
