Online credit card processing is helping small merchants to accept payments online. It is undoubtedly leading the online business forward. We are hanging out in the technologically advanced era. In this period, people do not have enough time to follow the traditional and time-consuming processes of making payments. In the 21st century, people are using digital payment modes. Those online payment modes are getting more preference than the cash transaction. Well, the small merchants are gradually understanding the current trend. Merchants who have enabled the online credit card processing services have already seen a remarkable rise in overall sales. As a result, the cash flow of the business has gone up.
Well, if you are running a small business and have not yet embraced the advanced payment equipment, you are actually following the wrong direction. However, you are not alone in this scenario. But, if we consider the current scenario, consumers are not leaving their house. They are making online credit card transactions and getting everything at their doorsteps. Therefore, the current scenario is actually hampering the growth of the business of the merchants who have not yet embraced the online credit card processing service.
Online Credit Card Processing
The online payment sector is quite complicated. Operating a business online and accepting online payments might be difficult for the new merchants. However, we understand this very well, and therefore, we will tell you the necessary angles associated with the online credit card processing service in an inextricable manner.
If we talk about it in the simplest way, online credit card processing service allows the merchants to accept payments from the customers online. The unique part is that the merchants will not have to pair their business with any sort of physical payment terminals to accept payments in such a situation. Online credit card processing services can accept all forms of payments such as digital wallet payments, debit cards, and credit card payments. It does not matter what card brand the credit card user is using while making the transaction, the online credit card processing service can accept all flawlessly. When cardholders make card transactions in physical store such as gas stations or grocery stores, they basically swipe their debit cards or credit cards on the card machine such as credit cards or debit card machines.
Similarly, in the case of online credit card processing service, the customers or the cardholders will have to provide the card details on the checkout page. It is a kind of digital card swiping. The main difference is that the merchants do not require any physical payment terminal to facilitate this online credit card transaction. If you are running an online business, this particular payment service will be very helpful for you.
How Online Credit Card Processing Works
Although you do not need any sort of physical payment equipment in the case of an online credit card processing service, there are certain other things that you must have. These are- merchant account, online payment gateway, and merchant processor solution. Online credit card processing service actually works in real-time. The merchants get the transaction amount in their bank accounts in just one business day. But, there are some behind-the-scenes that actually play the most important role in the case of online card transaction processing service.
If you are a new merchant, you should have proper knowledge about these behind-the-scenes. It will help you to solve some online transaction problems by yourself. We have explained this here. So, don’t miss to have a look at the following points:
- The customers will generally initiate the online credit card transaction on the checkout page. After putting all the necessary details of the credit card or debit card, the online payment gateway transfers the information to your merchant processor solution. This is a very secure process and so, you will not have to worry about any fraudulent activities.
- After receiving the required credit card debit card information, the merchant processor solution sends the same to the company that generally issued the cards to the customer.
- The company will check the information and then it will pass the same information to the bank that generally issued the credit card or debit card to the customers. The bank will check the balance in the card account.
- If the customer is maintaining enough balance in his account, the bank will approve the online transaction.
- After this, the bank that issued the credit card to the cardholders will send the approval notification to the company that issued the card to the customers.
- The company will then send the same information to the merchant processor solution.
As of now, you have certainly understood everything about the behind-the-scenes. Well, there are different types of card processing rates that are associated with this online card processing service in a very inextricable manner. We will talk about those rates later.
Why You Need This Card Processing Service
There are several benefits that you will get through embracing this online credit card processing service. Having advanced payment terminals and embracing online credit card processing services are different things. We have highlighted some of its benefits here. So, do not miss to run into the below-mentioned points:
Grow Your Business Easily
Small merchants across the world are constantly trying to generate more profits through their business. Unfortunately, not all of them are getting fruitful outcomes even after having a physical payment terminal. The main reason behind it is that they have not yet fully explored the ecosystem of online payment. Yes, you have gone through right. Having a credit card payment machine or debit card payment machine will not be enough for your business. You will have to take your business online. When it comes to accepting payments from your online business, you will have to integrate the online credit card processing service into your business.
If you take your business online, you will be able to extend the reach of your business. Online card processing service supports international payments. Therefore, you can do your business online.
Do More Business Even In The Pandemic Situation
The coronavirus pandemic has affected the growth of many businesses. It does not matter whether you are running a big business or small business, you have tasted the deadly impact of this COVID-19. However, the big businessmen know how to recover the loss. Therefore, we will specifically talk about the small merchants. Customers are unable to visit your physical store due to this pandemic situation. Moreover, cardholders are not giving much preference to card transactions through physical payment terminals. They want pure contactless transaction modes and the online platforms are offering this to them.
So, if you want to do more business even in this pandemic situation, you will have to understand the current scenario. As per the situation and requirements of the customers, you will have to make an alteration in your business strategy. You cannot rely on your physical store amidst this critical situation. Customers are spending most of their time online. So, you will have to knock on their doors online instead of offline. You can start your own online store and ask your customers to purchase from your online platform. You can integrate the online payment processing service into your digital store. In such a case, you will have to pair your business with any card processor company such as International Payment Solutions.
Remain Active 24×7
The best part of using an online credit card processing service is that your business will remain active 24×7. Therefore, there will not be any sort of interruption in your business anymore. The cash flow of your business will get an uninterrupted touch. In the case of a physical store, you cannot remain active 24×7. Moreover, you need a separate staff in your store for handling the transaction. The cash flow will be stopped after closing the door of your store. But, when you take your physical store online, the store will allow you to sell your products day and night. Moreover, the online credit card processing service will take care of your payment. The merchant processor will complete the online debit card and credit card transaction. You will get your transaction amount in your bank account within one business day.
Increase Customer Base
The online card processing service allows you to increase the customer base of your business. Most businessmen want to increase the customer base of their business. But, it is not as easy as it sounds. However, in the case of online business, the process of increasing the customer base becomes easier. Customer engagement will be enhanced. If you properly promote your business online, the chance of getting new customers will be increased. Moreover, your satisfied existing customers will promote your business in their personal network. Ultimately, the customer base will be increased.
When you are using a professional card processing service, the customers will not have to leave your website page while making a transaction. It will actually enhance the credibility of your business.
As of now, you have understood how the online credit card processing service is helping the small merchants amidst COVID-19. So, you should start using this service as early as possible.