What a Startup CEO Needs to Understand About Online Payments
We live in the 21st century, in a time when technology is advancing so fast that we can barely keep pace. Since we started doing almost everything using the Internet, the main accent here is on buying and selling. Therefore, if you’re starting your own business or if you’re a startup CEO, you will need to understand online payments. There are several ways you can manage your payments and payment methods.
One of these different modes of payment is a combination of a merchant account and a payment gateway and processes it in the e-commerce world like “CyberSource”, “Merchant One” and so on. You need to connect your bank with the card holder’s bank to complete the transaction.
Another, slightly upgraded way of payment is using PayPal or other online company which is managing online payments. You have to pay annual fees, and they accept a vast variety of credit cards, which is good. Also, PayPal is the most used online payment system, so I will advise you to choose it due to its popularity.
And finally, the latest way of online payment is using an Irish technology company called “Stripe”. You don’t need to register a merchant account, or set up a payment gateway, therefore, lower fees for you to pay. These kind of companies are simple to use, but since they just started developing, there are a lot of flaws still.
Choosing the right gateway and processor
To determine the correct gateway means to ensure your customers about your trustworthiness and to make it easier for them to pay. In general, a payment gateway is what requests the payment from customers. You also need an Internet merchant account with which you can collect money from different bank accounts. In most cases they come in bundles, so you will get several gateways which your customers can use to purchase what you’re selling. You need to choose the gateway with which your clients are familiar.
PayPal is one of the hosted payment gateways, as well as being the most popular, which means it redirects your customers to the payment processor’s platform to input their payment information.
There are also integrated payment gateways, which allows their clients never to leave your site to fill in their information or submit orders like while using PayPal. Before you set up your gateway you need to check if you’re able to integrate with it.
You will need to be careful with how those companies charge their fees. They can charge one or more and fees can be very different in amount, so look carefully for those whose charge suits you the most. It also depends on what kind of goods you are working with. If it’s something that’s not too expensive the 2% fee doesn’t sound like much, but if it is something expensive then it’s a problem, imagine 2% fee on 2000$ jewelry!
Security and Customization of Business Demands
You will see that people find it hard to trust in online payment methods, especially older generations since we are still trying to adapt to a fast advance of technology and the world in general. You need to make your customers comfortable and to show them that it’s alright to buy online, in other words, that they can trust you and therefore, the eCommerce you’re using. You can assure your customers that every bit of their information is secured and that they have nothing to worry about in this case.
You can assure your customers that every bit of their information is secured and that they have nothing to worry about in this case. PayPal does this as well as PayZang and other companies will protect your customer’s information, it is also in their best interest to satisfy the user’s needs. I advise you to use SSL protocol to secure your and your customer’s information.
Some of the payment systems are even customized, so you can make it meet your client’s expectations. Processor and gateway must be compatible! Therefore, you need to do detailed research on what is compatible with what to make sure you don’t lose your money or your customers. You need to make sure that your country as well as the other countries (in your interest the more countries, the better) support the payment system you choose. Otherwise, you will not be able to do what you intended.
Easier Checkout and Payment Gateway Compatibility
There are several ways to simplify checkouts due to more efficient transactions and easier purchases. You can add more than one payment method so your customers could choose the one they prefer, or have already used. You can also not request the registration of the customer which can be easier as well, just make them a guest, for example like Apple did. Only ask for necessary information. Otherwise, you will repel some of your customers.
You must make sure that the payment gateway you choose is compatible with almost all devices such as Android platforms, Windows, iOS and so on. That way you can cover the vast variety of ways to get money from your customers, which is the main idea here isn’t it? Most used gateways usually support all the platforms, but you should check to make sure.
PCI DSS or Payment Card Industry Data Security Standard is something you should pay close attention to, because that is what makes sure all companies that process, transmit or store credit card information maintain some degree of security. It applies to every merchant and every organization that works with transactions and cardholder data. You can find PCI DSS documents on PCI Security Standards Council Website. This way if anything goes wrong, you can use these regulations in your favor to right the wrong.
Additional Ways to Improve Online Payments
- EMV Card Processing
- Mobile Credit Card Processing
- Apple Pay and NFC
- In-app Payments
- Recurring Billing
EMV Card Processing is a form of cards which stores their information in integrated circuits instead of magnetic stripes. Therefore, more information about your customer is available to you. In other words, these cards contain microprocessor chips which hold and protect cardholder’s data. Since people are starting to use this kind of cards, it’s advisable to get the reader for them and enable your customers to use them.
Mobile Credit Card Processing. The main idea here is to find easier ways for your customer to purchase something. All you need is an add-on for you smartphone and application on your phone. You will be able to read any credit card, from anywhere, which come in quite handy.
Apple Pay and NFC. Is a form of a virtual wallet which you can use in online payments. Only Apple products support this kind of payments. Apple Pay lets mobile devices make payments via contactless payment terminals and for those using Apple products is the easiest way of paying.
In-app Payments. You will have to utilize your application using the proper gateways to make it possible for your customers to purchase safely from you over their phones, tablets, and other gadgets.
Recurring Billing. In other words, it’s a classical subscription, an ongoing payment over particular time intervals like monthly, weekly or annually. Subscription is a magnificent thing both for you as a provider of goods and the customer, you will receive your payment on time, and your client will receive your goods or services as well.
Tweak Your Biz is a thought leader global publication and online business community. Today, it is part of the Small Biz Trends stable of websites and receives over 300,000 unique views per month. Would you like to write for us?
An outstanding title can increase tweets, Facebook Likes, and visitor traffic by 50% or more. Generate great titles for your articles and blog posts with the Tweak Your Biz Title Generator.