Launching your own ecommerce business involves making numerous pivotal decisions. Out of all of them, however, probably the most important may be your choice of a payment processing company. Partnering with the right one can set the stage for long, lucrative relationships with your customers and will help establish the strength of your brand.
What are credit card processors?
If you intend to accept online payments from customers via credit cards, you need to establish a relationship with a card processing company. In effect, this entity acts as a middleman who facilitates the movement of funds from your customer’s bank account into yours. This is accomplished by coordinating with all of the various players in the online payments universe, including your merchant bank, the cardholder’s issuing bank and the credit card networks or associations (Visa, Mastercard, Discover, etc.).
What do processors do?
Wondering why selecting a high-caliber payment processing vendor is so important? You need only to look at a description of the vital tasks they accomplish for your business.
- Verifying your online customer’s billing information, including the authenticity of their credit card details.
- Taking steps to ensure that the customer has sufficient funds in their account for each transaction before completing it.
- Approving payment requests and then providing your customer with an order verification number.
- Transferring the funds from approved transactions into your merchant account and eventually your bank account.
- Providing robust encryption that prevents your customer’s sensitive payment details from being breached by data hackers.
Think about what might happen if even one of these steps were bungled by this intermediary. In the end, it would be you and your customer who suffered the worst of the consequences.
Earning and maintaining trust.
When someone opts to buy a product sight unseen online, they are making a leap of faith, often relying on their best judgment to get the convenience that ecommerce offers. If you tie your online business to a shoddy payment processing company with sketchy practices or lax security that compromises your buyer’s identity or payment details, you will almost certainly lose them once and for all. Even more sobering, you could put the integrity of your entire business in peril.
Your processing company is a vital link between you and your clients. Your reputation is only as solid as that of your card payment vendor. Do not make the mistake of putting your success at risk by placing your livelihood in the hands of a shady charlatan just because their prices are low. Instead, conduct thorough research, settling for nothing less than an experienced partner that provides the documented security profile and customer service you should demand for your ecommerce store. You, your valued customers, and your success are worth it.
