Online payment processing services are really playing an important role in the 21st century. If we consider the present situation, we will get to know that COVID-19 has hampered the growth of small businesses. Well, people are unable to go outside for shopping. They are maintaining social distancing. On the other side, businessmen having physical stores are compelled to shut down their business. The number of overall sales has been decreased. As a result, it has hampered the overall cash flow in the business.
Online Payment Processing
Well, we are living in the 21st century where technology is playing an impactful role. People in this modern era are using credit cards, debit cards, and mobile wallets. Therefore, in this technologically advanced era, if your business is still following the same old traditional methods of accepting payment, you are actually making a big mistake. You will have to change the structure of your business as per the situation.
Pairing your business with an online payment processing service is one of the best ways through which you can accept online payment. The best part of enabling such a payment service is that it allows you to accept payment in various forms. People are now giving importance to mobile wallet transactions, credit card transactions, debit card transactions, and many more. Therefore, your business must have the capability to accept these forms of online payments.
Considering the present situation where people are avoiding cash transactions, this online payment processing service can keep you ahead of your competitors. It supports cashless transactions and therefore, customers will be able to make transactions from anywhere.
How It Works
If you are planning to embrace online payment processing services, you are actually going in the right direction. However, if you don’t have knowledge about it, you might face difficulties in the beginning. Therefore, we have elaborated how online credit card processing services work. So, if you want to pair your business with an online payment processing service, you must go through the following points:
- Well, the online payment processing services basically complete the transaction online. The customer initiates the transaction by swiping the debit card or credit card on the credit card machine. Well, a virtual terminal can also be used in such a case. After initiating the transaction, the online payment gateway securely sends the transaction details to the payment processor. The payment processor will then check the information.
- After checking the information, it will pass the information to the credit card issuing company. The company will verify the card details and then it will send the transaction details to the credit card issuing bank.
- The bank will check the available balance in the card account. Depending upon the available balance, the bank will approve the transaction.
- After this, the card-issuing bank will send the information to the card-issuing company. The card issuing brand sends the same to the merchant processor. So, this is how the transaction is completed.
Important Things To Know
There are certain things that you must know before getting into online payment processing services. We have highlighted some of them here. So, you must run into the following points.
Selection Of The Payment Processor
Well, enabling credit card processing service is not as easy as it sounds. You will have to follow a few steps to enable it in your business. First of all, you need a merchant account to start using this service. If we consider the present situation, you will get to know various merchant processor solutions. The different payment processor offers different credit card processing rate. Depending upon the rate and the requirements of your business, you can choose the merchant processor solution for your business. For getting the best outcome, you can go with International Payment Solutions. The platform offers an affordable credit card processing rate. Moreover, you will get your business account within 1 or 2 business days.
Different Types Of Credit Card Processing Rates
Knowing different types of credit card processing rate is also very important. Different merchant processors come up with different types of credit card processing rates. These are flat-rate processing rate, interchange plus processing rate, and many more. In the case of a flat-rate processing rate, the merchant processor will charge a specific rate for every transaction. It does not matter what card is being used to make the transaction, the credit card processing rate will remain the same every time.
If you have a small business, you can go with this pricing structure. On the other side, if you have a large business, and if your business is accepting too many credit card payments every day, you should go with an interchange plus pricing structure. In the case of an interchange plus pricing structure, you will have to pay a different credit card processing fee for a different transaction. The entire matter depends upon the payment modes being used by the customers. However, the interchange plus pricing structure is very transparent. You can know different charges issued by the merchant processor.
Various Types Of Payment Terminals
Without having advanced online payment terminals, you cannot accept payments online. There are different types of payment equipment available in the market such as credit card machines, debit card machines, virtual terminal, pay at the table payment terminal, point of sale system. If you are running an online e-commerce platform, you can integrate the online payment processing service to your website. Thus, customers will be able to make payments directly from their homes. However, if you are running a physical store and wants to accept the cashless transaction in this critical situation, you can go with other payment terminals. Depending on the requirements of your business, you will have to choose the payment terminals.
Advantages Of Using Online Payment Processing Services
As a businessman, you will have to realize the value of your customers. Even in this pandemic situation, if customers are choosing your business or platform for purchasing items, you should consider yourself lucky. In the 21st century, the market has become competitive and amid this situation, you will have to do something different to deliver the ultimate satisfaction to your customers. If you ask your customers to choose a payment method that they do not like to use, sooner or later, you will lose your customers. If the customer base of your business gets hampered, your business will go down.
You will have to understand that your customers are preferring online payment modes. In such a situation, your business must have the options through which you can accept payment online. The online payment processing service will provide your business with such options. Along with it, you will also get some other benefits if you pair your business with online payment processing services. We have highlighted some of them here. So, do not miss to run into the following points:
Mitigate The Overall Labour Costs
In the case of accepting offline payment methods, you will have to hire staff to manage those transactions. Moreover, you need a professional one to track sales and managing the cash counter. However, the scenario is completely different in the case of an online transaction. The process is completely automatic. Moreover, the advanced payment terminals are capable of tracking each and every transaction. So, if you choose an online payment processing service, you will not have to keep extra staff in your shop. As a result, it will reduce the overall labor cost.
Online Payment Is Easy
Online payment does not have any sort of complications that you usually encounter in the case of offline transactions. Yes, you have heard it right. It is simple and quick. You will get all the transaction amount in one business day in your bank account. The customers will also feel satisfied when they will get their preferred payment method while making a transaction in your business. Moreover, the advanced payment terminals also make the process easier. Even some months or years back, people would have to enter the card pin to complete the transaction. But, now, the customers will have to hover the card over the credit card machine and the transaction will be completed.
Zero Risk Of Theft
Well, when it comes to online payment processing, there will be zero risks of theft. Yes, you will get the transaction amount directly in your bank within one business day.
More Cash Flow
If your business is offering multiple payment options to the customers, the customers will feel happy. The customers can make payments in whatever way they want. As a result, you will never miss a single payment. The customers will also share their experiences with their personal networks. As a result, you will be able to grow your customer base. So, it will ultimately enhance the cash flow in your business.
Grow Business Easily
When you are operating a business online, the chances of getting more customers will get enhanced. Yes, you can do business domestically and internationally as online payment processing services can accept international payment.
As of now, you have probably understood how online payment processing services are changing the ecosystem of online payment. So, don’t just wait. Get in touch with a merchant processor as soon as possible.