The Payment Processing Journey in E-Commerce:
E-commerce businesses can’t sell their products without processing payments. Whether you have just started selling or plan to expand your business, processing payments is a necessary evil that every e-retailer needs to go through. The good thing about e-commerce is that almost any business can get started with very little capital investment. However, this also means that it’s easier for new businesses to get overwhelmed by the costs and challenges of setting up operations. Many e-retailers don’t realize just how much they need to take care of in order to run their business efficiently and effectively – especially at the beginning. In this blog post, we will discuss the payment processing journey in e-commerce, its importance and why you should focus on it sooner rather than later if you want your business to grow.
What Is Payment Processing In E-Commerce?
The core function of a payment processing system is to facilitate transactions between buyers and sellers. This means that you have to acquire an acquirer, who in return provides you with a gateway to collect payments from customers. The acquirer acts as a middleman between sellers and customers, taking a percentage of each transaction. The Acquirer is the first step in the payment process for an online business. Here, the business enters into a contractual agreement with an acquirer to collect payments from customers. The Acquirer is responsible for acquiring contracts from sellers to collect payments from customers. The seller provides the bank account details of their customers and the acquirer makes the transaction with the customers.
Why Is It So Important To Have A Proper Payment Gateway?
There are several reasons why it’s important to have a payment processing system in place for your business. First and foremost, without a payment gateway, you can’t accept credit card payments for your products and services. This means that you’re unable to generate recurring revenue from credit card sales. Credit card sales are an important source of revenue for many businesses. In fact, credit card sales accounted for around $9.7 trillion in revenue in 2017, making them clearly one of the most important payment methods. Credit card sales are a great choice for many different businesses due to the fact that they tend to be more reliable than alternative payment methods like Click-to-Pay. They’re also a safe and simple way of collecting money from customers without the need for any form of additional paperwork on their part. Next, you’ll want to ensure that your payment processing system is PCI compliant. This means that your payment gateway is certified as being secure against external threats like hackers. You don’t want to deal with unnecessary expense and headache as a result of hackers taking advantage of a less-than-secure system.
Stages of the Payment Process in E-Commerce
There are five stages involved in the payment process. Let’s discuss each one in detail. – Acquiring: In the acquiring stage, the merchant enters into a contractual agreement with the acquirer. The acquirer receives a subscription fee from the merchant every time a customer makes a payment. The merchant also has to pay a percentage of transactions as fee. – Authorizing: The transaction goes through the processing network. – Settling: Once the transaction reaches the payment network, the merchant’s bank will receive a payment instruction and a corresponding amount will be deducted from the merchant’s bank account. – Clearing: The cleared funds will then travel through the payment network until they get to the payment network provider’s bank, where they will be deposited.
Steps to Take When Setting Up a Payment Processor for Your Business
As you can see, setting up a payment gateway is a bit of a lengthy process that requires a lot of planning and attention to detail. Here’s what you need to do to establish a successful payment processing system. – Conduct Market Research: Before you start setting up your payment processing system, do some research to find the best provider for your particular business type. You should also search online for reviews and experiences of other e-commerce business owners. – Choose the Right Payment Processing Platform: Once you’ve chosen a provider, you need to select the right one for your company. There are a number of factors you should consider when making this decision. – Test Capacity and Performance: Once you’ve selected the platform, you should start an A/B testing program and conduct capacity and performance testing. This will allow you to identify the best payment processing solution for your business. – Create Your Own Processing Rules: Now that the platform is in place, you need to start creating your own processing rules. This will allow you to optimize your process and provide the best service to your customers.
Which Provider Should You Choose?
There are several factors you need to consider when selecting the right provider for your business. Let’s take a look at a few of them. – Cost: You’ll want to choose a provider with low rates and a low rate cap to help you save money. – Ecosystem: You need to look for a provider with strong partnerships in place to allow you to accept multiple forms of payment. – Security: Check to make sure the provider you’ve chosen has the best security features. You’ll want to make sure the provider you choose meets or exceeds PCI security standard requirements. – Level of Support: You’ll want to feel confident that the provider you’ve chosen has strong support for your business. This includes technical support, billing issues and software updates.
Payomate: A Decentralized Payments Platform for E-Commerce Businesses. Why You Should Care?
Payomate is a scalable, decentralized and compliant payment gateway solution. This platform lets you easily connect your payment gateway to the blockchain while allowing you to set your own rules. You can also choose to use either the Ethereum or Bitcoin blockchain networks. You’ll receive a 10% bonus on your earnings when you sign up using this link https://www.payomate.com/register/1xbQ You’ll receive a 10% bonus on your earnings when you sign up using this link https://www.payomate.register/1xbQ
The journey of setting up your payment processing system can be a lengthy and frustrating one. Fortunately, there are plenty of helpful guides available online to help you navigate the process successfully. In this article, we have shed light on the payment processing journey in e-commerce and its importance. We hope that our article will help you better understand the process and ensure that your business is properly set up for success.