Establishing payment processing services so that you can accept online payments is one of the most challenging aspects of launching an ecommerce business. Even though brick-and-mortar businesses are familiar with some aspects of payment processing, they may not be familiar with how online payments work. To get started with ecommerce payment processing, you need to know some terms and payment methods that you can accept.
Online shopping is becoming more popular, even as brick-and-mortar retail continues to exist. There is an increasing trend towards ecommerce businesses among modern consumers. You can increase revenue and better serve your customers by selling your products and services online. A successful online store relies heavily on the success of its payment processing. A robust payment solution is essential if you want shoppers to make purchases through your website.
With a wide range of ecommerce solutions, credit cards, debit cards, as well as custom web stores, you can accept payments online when in-person payments are not possible. You can easily allow your customers to checkout directly from your website whenever they are ready. Your customer can go to the checkout page after adding items to their cart. They can then process their payment digitally by entering their debit or credit card details. By setting up the process correctly, your customers can complete their entire purchase process without ever leaving your website.
Online shopping is becoming more popular, even as brick-and-mortar retail continues to exist. There is an increasing trend towards ecommerce businesses among modern consumers. You can increase revenue and better serve your customers by selling your products and services online. A successful online store relies heavily on the success of its payment processing. A robust payment solution is essential if you want shoppers to make purchases through your website.
With a wide range of ecommerce solutions, credit cards, debit cards, as well as custom web stores, you can accept payments online when in-person payments are not possible. You can easily allow your customers to checkout directly from your website whenever they are ready. Your customer can go to the checkout page after adding items to their cart. They can then process their payment digitally by entering their debit or credit card details. By setting up the process correctly, your customers can complete their entire purchase process without ever leaving your website.
Ecommerce Payment Processing: What Is It?
The process of accepting payments through an ecommerce portal is called ecommerce payment processing. It involves a secure terminal, or gateway, that shields customers’ sensitive financial information and facilitates the transfer of funds from them to merchants. Although most customers may believe the ecommerce payment process only takes a few seconds—following the click of a button—in reality, it involves numerous points of interaction between multiple players: customer, merchant, payment processor, merchant account service, and both the customer’s and merchant’s respective banks.
Traditional vs. Ecommerce Payment Processing
In traditional payment processing, an ecommerce merchant integrates a third-party payment gateway during checkout. Customers are redirected to an online payment page on that third party’s website, where they enter their payment details to complete their purchase. Meanwhile, your business’s own website integrates ecommerce payment processing. Customers and merchants are able to build a higher degree of trust through this one-stop shop. It is more likely that customers will abandon their online shopping cart if they are redirected to a third-party site in order to complete a transaction. A study by the Baymard Institute found that 18% of users are likely to abandon a checkout flow because they don’t trust the site.
How Does Ecommerce Payment Processing Work?
At the checkout stage, users enter their credit or debit card information, usually through a form embedded in your website or mobile app. Your website’s payment gateway sends encrypted payment information to the processor. After this, the processor contacts the bank that issued the card to ensure sufficient funds are available in the account, and either authorizes or declines the transaction. Ecommerce merchants receive authorization or decline information from the payment processor, which is communicated back to the payment gateway. Upon authorization, the customer receives an email confirmation of the order. As soon as the payment has been made, the funds are deducted from the customer’s credit or bank account, and transferred to the merchant’s account.
How to Choose the Best Ecommerce Payment Processing?
Selecting and integrating the right payment gateway provider isn’t difficult or expensive if retailers understand their business needs. When done correctly, the brand’s customer experience and profitability can be immediately improved. But what should you look out for when looking for an ecommerce payment solution? Here are a few factors to start off with:
- Compatibility: Is the payment service provider you want to use compatible with your eCommerce platform? Almost all have integrations with major ecommerce players. To find out if there is an integration available, simply Google your ecommerce platform plus the name of the payment processor.
- Security: Since the service provider stores your customer’s card information, they must meet certain industry standards to qualify as an accredited payment gateway. The PCI compliance standard is generally met by all major payment processors, but you should still check if you’re considering a smaller less well-known company.
- Customer Support: What level of support do you require? Would you prefer basic email support or to speak with an account manager over the phone? Most payment processors cater to both types of customers, but higher volume accounts often receive phone support only. Be sure you qualify for phone support before enrolling if this is very important to you.
Apart from this, here are some other factors to consider when choosing an ecommerce processing platform:
- Device Compatibility: There will be a variety of visitors using different devices depending on what you sell and who you sell it to. Certain payment gateways work well on all devices, while others are buggy on certain platforms. Take the time to check out how the gateway works on different platforms and operating systems before committing. Additionally, knowing your website visitors’ breakdown in advance is helpful as well.
- Smooth and Easy Integration: Payment gateways cannot operate on their own. Gateways are part of an infrastructure, so you need to figure out if your chosen gateway will work with your website platform. The platform for your website may be Woocommerce, Shopify, Magento, WordPress or a custom-built one. The first step is to ensure your platform is compatible with the integration.
- Pricing: As with any product, the price will be the biggest thing you consider. There are a number of factors that influence payment gateway pricing. You need to consider your business model, types of payments, monthly/annual income and more before opting for any ecommerce payment processing platform. You should first assess how much money you’re accepting on a regular basis before trying to find a payment gateway, and this will be impacted by the way you operate as a business.
Payment Solutions to Fuel the Growth of E-Commerce
Nowadays, ecommerce payment solutions are convenient, flexible, and quick. Investing in the right ones can really enhance the shopping experience for your customers. In the age of new age technologies, such as UPI, ePOS, and payment links, users have been able to look beyond conventional payment methods. eCommerce has grown steadily while being supported by payment solution providers, particularly during the pandemic. Digital payments have led to a change in consumer behavior. There is an increasing trend towards seamless online and offline payments these days. In response, retailers are updating and improving their payment infrastructure to provide seamless shopping and payment experiences to consumers. As technology advances to ensure digital security, the industry is undergoing significant transformations.
Reduce PCI scope with secure eCommerce payment processing
All businesses that process, store, or transmit any information listed on a credit or debit card must comply with PCI DSS. Merchants who accept credit cards on their website must assess their compliance annually. A different level of assessment may be required depending on the volume of your transactions. A merchant with a low transaction volume may be able to assess its compliance on an internal basis. Regardless of whether you store credit card numbers in full (which you should not), if those numbers travel through your network en route to a payment gateway, then PCI compliance must still be proven. Although it is not a legal requirement to comply with PCI, any bank or processor that acquires PCI data is still responsible for enforcing compliance.
Limiting the scope of your PCI compliance can reduce your costs and risks associated with it. It is possible to eliminate this risk by using an ecommerce payment method where the full credit card number never travels through your network. Although you still have to go through the PCI compliance process, it does reduce your risk and simplify the requirements. Some payment methods work this way by redirecting your users off your site at the end. Payment methods such as this are gaining popularity among users, but they can also cause some confusion and cart abandonment. PCI compliance scope can be reduced while users remain on your website with new ecommerce payment methods.
Oceanpayment ecommerce payment solution
Oceanpayment is a one-stop ecommerce payment solution that is trusted by a number of companies worldwide. Ecommerce payment solutions offered by Oceanpayment are safe, convenient, professional, and simple for merchants conducting global business. Whether you’re a small business or a large corporation, Oceanpayment can help you process payments to maximize business opportunities and revenue. With Oceanpayment, merchants can accept over 500 payment methods across multiple channels, anywhere in the world, with just one platform. Providing a diversified portfolio of value-added payment-centric services and solutions to the customer through global presence and expertise, Oceanpayment has developed sustainable partnerships with acquirers, payment service providers, and merchants worldwide. With an unwavering commitment to providing secure, convenient, and easy-to-use products and services, Oceanpayment is dedicated to constantly improving the customer experience through innovative and reliable ecommerce payment solutions.
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