One key business solution merchant webmasters always look for is a dependable payment processor to accept payments for online transactions. To the uninformed, however, payment processing is a perplexing subject. There are numerous complex issues to start with, specifically with regard to the fundamentals of payment processing, payment gateway configuration, and a few aspects of third-party payment processors. Before we get down to the best payment processors, here are some essentials about payment processing itself.
About Payment Gateways
A payment gateway is a third-party company, like a bank, which connects your e-commerce software to your credit card merchant account. This real-time facility lets you accept bank cards, debit cards, along with other forms 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 importantly if the payment card is not accepted for any reason.
• You ride on speed and efficiency. If 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 bank cards immediately. To summarize, payment gateways accepts information, encrypts it, and transmits it over the internet.
Establishing Gateway Configuration
Setting up your payment gateway essentially includes two steps.
• Step one involves your merchant account along with your gateway provider. You should provide access to the gateway provider simply by making available all needed information.
• Within the second step, the payment gateway will configure with all the payment processor. All that a payment processor will ask you is always to log in, proceed to configuration and payment methods, and after that choose 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 choice depends 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, selecting the other alternative is really a better option. Deciding on a “Authorize Funds” allows you to put a temporary hold on the customers’ funds till you ship your product or service.
Understanding Third-Party Processors
In other words, one third-party processor is a vendor who charges your customers’ bank cards on your behalf then transfers the money electronically in your account. Many online merchants would rather have both third-party processor and also the payment gateway. In this way, you can ensure your prospective buyer has his or her preferred payment method and is also not turned away. Now you hold the basics, we can focus on what features the best payment processors have.
An excellent payment processor
• Provides merchant account services efficiently. Good customer service is essential. Availability of 24×7 help provides lots of reassurance there is a person to troubleshoot your problems.
• Has an effective antifraud solution set up. You hear a whole lot about charge card frauds happening nowadays. Bank cards are stolen, lost, or misused by false information. The best payment processors verify billing and shipping addresses with those supplied by MasterCard/Visa. Additionally, card security codes are put in place to confirm that the buyer actually owns the credit card. • Provides you with accurate financial information.
• Has a recurring billing feature. This basically means automatically collecting payment installments following a fixed duration.
• Have reasonable rates and fees. However, you have to remember that each payment processor may have different sets of rates. As an example, they may have a variety of rates, such as discount rates, chargebacks, or transaction rates, in addition to application fees, ongoing fees, and settlement fees. Picking the best payment processor will entail evaluating all financial elements of the charges and fees.
• Is dependable in all respects. Any weak link in the payment processing system means lack of customer confidence, and this results in lack of business. There are numerous dependable and well-known payment processors available. All that you cgigrs to accomplish is assess the benefits and disadvantages each processer has.
A number of the well-known names in the market are Google Checkout, PayPal, MiraPay, and Authorize.net, to mention a few. They have survived the competition and therefore are thriving because they have built customer trust through providing a dependable, secure, and fast payment environment.