Guide for processing credit card payments online

In 2018, the leading credit card processors (Amex, Discover, Mastercard, and Visa) collectively reported over $3.8 Trillion in transaction volume. This represents a significant shift away from traditional cash-based sales. Customers today are looking to transact with companies that offer them streamlined payment options.

In this digital landscape, learning how to process online credit card payments can be an invaluable tool in expanding your business. With credit card use increasing at an unprecedented rate, this is the perfect time to learn more about processing credit card payments online.

Importance of Processing Credit Cards Payments Online

A lot of business owners ignore the growth of digital mediums because they feel more comfortable handling cash the conventional way. However, sticking to the conventional approach can result in major losses for your business. Across the US population, credit card transactions amounted to over $17.1 Billion in 2021. This figure represents a significant chunk of consumer spending and makes it essential for your business to consider offering an online card payment provider to your customers.

Benefits of Accepting Online Credit Card Payments

As your business starts to grow, it is natural to consider venturing into digital sales. Online credit card payments allow you to expand your customer outreach and increase your revenue.

Here are the biggest benefits of accepting online credit card payments.

Secure Payment Management

Conventional payment handling can often be marred by the inefficiency of the cash handling process. From accumulating cash to accounting, there are a ton of steps you need to take to process your revenue. Cash handling also leaves your payments exposed to mismanagement and malicious attempts from external factors.

Offering online credit card payments allows you to receive payments in your account securely. These payments are backed by verified authenticators and keep your transactions secure from external influence.

Increased Efficiency

Thanks to the scalable nature of processing credit card payments online, you can seamlessly manage a larger number of payments compared to conventional methods. You’re also no longer limited by the number of cash tills and cashier processing. The ability to simultaneously process multiple payments increases efficiency and saves you a ton of time and money.

The configurations of options like automatic payment management help your company generate revenue without manual intervention. This automation helps you focus your human resources on critical areas and benefit from enhanced efficiency.

Cashflow Improvements

Due to the faster processing speed of online credit card payments, you can benefit from faster cash flow management and build up your capital. You can also continue payment management on conventional bank holidays, including weekends, in contrast to conventional options like cash or cheques.

Transparent Accounting  

Shifting to online payment management allows you to have a much better track of your financial operations. With digital dashboards, you can review past transactions and shift to an improved bookkeeping regime that is not reliant on conventional data. You can also seamlessly sync and connect your datasets to other avenues.

Costs of Setting up Processing Credit Card Payments Online

A key hurdle that stops small businesses from adopting online payment processing is often the cost associated with processing credit card payments online. This is often a result of inefficient implementations and unreliable 3^rd party companies. Having an understanding of the key variables can help you have a better understanding of what to expect when you implement online credit card payments.

Here are some of the key components associated with online payment management.

• Transaction Costs – These are the costs associated with processing every single transaction by the payment provider. Even though these costs vary on the basis of provider, the primary structure of the costs is similar for most companies. You can expect to pay a minor fixed transaction fee or a percentage-based fee depending on your chosen vendor.
• Card Network Fees – Card network fees are charged by the card-issuing networks for processing the payments. These fees are often a significant percentage of the fees charged on online transactions.
• Payment Cancellation Fees – Even though these fees are primarily charged by lesser-known 3^rd party vendors, they can add a significant cost for online businesses. Payment cancellation fees are imposed in the scenario where customers cancel their orders from the business due to any acting reason.
• Monthly Fee – Monthly subscription fees are charged by some payment processing platforms in exchange for monthly payment integration and management on digital websites. This fee has to be paid on a regular basis in exchange for the services procured to manage payments.

Aside from these transparent costs, shady payment processors often have hidden fees and pricing structures that can have a detrimental impact on your profitability and digital business. Your ideal option is to go with online card payment providers that are upfront about their costs and charges. This allows you to evaluate and compare your options and go for a provider that meets your requirements.

Even though it seems like a simple process, the payment provider you choose will have a major impact on your profitability. Make sure you review your options before making a financial decision.

Conclusion

With consumers shifting towards digital payments, offering online credit card payments can allow your business to have the edge over the competition. The convenience of seamlessly receiving payments allows you to focus on business scalability and delegate the management process to a popular provider.

However, processing credit card payments online can be challenging if you don’t have the right insight. 3^rd party partners can often overcharge you on every transaction. This adds significant overhead to your business costs. Working with an experienced partner can help you implement sustainable payment processing and help you decrease costs significantly.

Oceanpayment is a leading payment solutions provider focused on simplifying digital payments with cutting-edge solutions. We’re helping companies go digital with easy-to-use solutions and accessible services designed to connect stakeholders from around the world. Our qualified team and years of experience make us the ideal partners to help you manage online credit card payments.