Online commerce is getting better by the day and one of the major area that has improved over time is that of payment options and processing. They are now more payment options than we use to have before now.
As an entrepreneur in e-commerce the stakes are just getting better and better; and for you to be really successful you must offer your customers more flexibility as to how they pay for their online purchases and that is in your e-commerce website.
The current study reveals that online stores that uses three or more additional payment options apart from the use of credit card recorded higher sales and more conversion rates than those who only offered a single payment option apart from credit cards.
This simply implies that the more payment option you offer on your online store, the higher your sales and conversion rates which variably means you will make more money. Here are some of the online payment options you can offer in your online store.
Credit card payments have been the dominant forms of payments online. The use of credit cards as payment option is still a popular way of paying for goods and services online. You will only be able to use this payment option, MasterCard, Discover, Amex, Visa Card and more on your e-commerce site after you have register as an online merchant.
How to register is quite simple. Just register for an online merchant account with your local bank. Note it that you will have to register online merchant accounts with two separate banks before you can be eligible to process payment from all major credit cards in your e-commerce website. The major reason for this is that many of the banks only deal with some of the credit cards involved.
In another way, you can register an online merchant account through a third party merchant account provider. Some of them are Moneris, Beanstream, InternetSecure or PSiGate.
The benefits of registering through a third party merchant account provider is that you will be free from making any security deposits as required by banks. They set up with a third party merchant account provider are very fast and are flexible, enough to allow for bundled e-commerce service packages which will include internet gateway needed for credit card processing which is equivalent to POS terminal with a shopping cart.
Where the disadvantage is, is the cost. Their discount fee is usually high compared to when you register your online merchant account with your local bank.
At whatever place you choose to get your online merchant account, you will still need to get an internet gateway service. This gateway helps to verify information, transfers requests and authorizes credit cards use in real time. The four aforementioned companies offer these credit card processing services too, but they are quite a number of companies that do too like PayPal and Moneybookers.
PayPal as become an all-in-one online payment solution. With their current website payment standard program, they let online merchant accept Visa, MasterCard, Discover, and American Express credit card payments and more so bank transfers and offer PayPal as well. This offer is available to merchants with no monthly fees, setup or cancellation fees. They will only charge you a fee of 1.9 to 2.9 percent of all transactions with 30 percent per order, depending on your company’s sales volume.
With PayPal, you can also upgrade from the Website Payment Standard to Website Payments Pro, where your customers can check out right on your site rather than going through PayPal. This offer is currently available for U.S. citizens.
Option 3 – Moneybrookers
Just like PayPal, Moneybrookers also offer an all-in-one online payment solution. With an addition of a API code provided by them on your e-commerce website, you can immediately process credit card payments from all major credit cards straight to your e-commerce website without delay. You can also link your Moneybrooker account directly with any of your local bank account through the SWIFT network.
How to choose an online payment service provider.
Here are some questions you need to ask yourself when deciding on picking an online payment service provider.
1. Do they provide secured payment processing? As an online merchant one thing you should consider before choosing a payment service provider is are they offering secure payment methods which enable your online shoppers to make purchases through your site safely and securely without any worry of fraud, identity theft or other security breaches.
2. What customer service platforms do they offer? It’s important to select a provider that answers all your inquiries and questions in a timely, polite, and comprehensive manner.
3. Does the payment gateway support your shopping cart? While a good, reputable shopping cart should be able to support a myriad of shopping carts, it’s important to make sure it’s compatible with your particular shopping cart before you sign up with the payment gateway.
4. How much do they charge? Make sure you do your homework to find out of the provider offers competitive pricing and inquire about any extra, possibly hidden
fees.
5. Do they offer dispute resolution?If there is a dispute between you and a buyer, does the payment services provider offer a dispute resolution solution to help solve the issue?
6. Are they PCI-Compliant? Look for a provider that is PCI-compliant and has adhered to such guidelines and offers a secure environment to store and transmit the payment information of your customers.
7. What types of reporting do they offer?Before you sign with a provider, have them offer a demo or show samples what types of reporting they offer, whether it’s batch reporting or reports in real-time.