Entrepreneurs can be excited about opening an ecommerce shop. But you need to be careful. While most entrepreneurs aren’t experts on ecommerce payment processing they understand that customers need to be able to charge their cards online.
Finding the right payment processor is one of the most crucial decisions you will make when operating an ecommerce shop. Businesses that are looking to grow will find ecommerce payment processing essential. It allows you to accept payments online from customers and transfer them to your accounts.
Key elements of Ecommerce Payment Processing
Ecommerce payment processing is a simple way to accept payments from customers. This is accomplished through an encrypted gateway, which protects customer’s card information as well as establishes a secure connection between the merchant and the customer. These are the essential facts about ecommerce payment processing.
- Your ecommerce shop links to a secure payments processor
- The secure payment gateway encrypts card information before it is sent to the processor.
- To confirm that the funds are available, the processor sends a signal back to the bank.
- Once the transaction has been approved, it will go through. The amount is debited from the customer’s bank account.
It takes only a few seconds to complete the entire process, which you likely already know if this is something you’ve done before. Most cases, shipping costs include the cost of ecommerce packaging.
Difference between Ecommerce Payment Processors, Merchant Accounts and Payment Gateways
Understanding the terms payment processors, merchant accounts and payment gateways is essential to understand the entire process of receiving an electronic commerce payment. These terms may be familiar to you, but it is best to understand them.
What is an Ecommerce Payment Processor (Ecommerce Payment Processor)?
A ecommerce payment processor takes information from the payment gateway, verifies it and then processes the transaction. The processor verifies that the customer has sufficient funds and deposits them in your merchant account.
Understanding Merchant Accounts
Merchant accounts are opened by an ecommerce store at a bank. This account is where funds will be received once they have been processed.
What is a payment gateway?
A payment gateway acts as a link between your ecommerce shop and the payment processor. It is an integral part of your ecommerce payment processor solution. It transmits encrypted information from your ecommerce shop to the payment processor.
Secure Your Website with SSL and PCI Compliance
An SSL certificate is required to secure payments. No matter whether your ecommerce credit cards processor requires an SSL certificate, it doesn’t matter. You still need one. Either you can obtain one free of charge or you can purchase one to install on your site.
A SSL certificate builds trust and improves conversions. Your website should have an SSL certificate in this digital age.
You will then be PCI compliant. PCI compliance is a term that many ecommerce payment processors are familiar with, but don’t know the details. PCI compliance is simply the set of regulations merchants must follow to accept online payments.
The security layers used on your website will vary depending upon how strict you are about compliance. Since most ecommerce platforms do not accept payments on-site you do not need to worry about PCI compliance. However, if you do process payments on-site it is a good idea to speak to an expert about PCI compliance and payment gateway integrations.
Top 3 Ecommerce Payment Processing Companies For High Volume Payments
There are many payment processors available. This is a list of 8 top ecommerce payment processing companies that can process high volume payments.
1. PayPal
PayPal is the world’s largest payment processor. It was established in 1998 and has since grown to be a standard choice for ecommerce businesses all over the world. It is affordable and available in over 200 countries making it a popular choice for businesses all around the world.
2. Stripe
Stripe allows you to customize your payment solution. You can modify the API to create a payment system that suits your needs. You can accept payment in Bitcoin as well as cash. It is widely used by the biggest companies in the world and it is a great option for users.
3. Square
Square is not only ideal for ecommerce payments processing, but also offers a PoS software program that allows payment processing regardless of where you are located. It basically converts your mobile device to a payment processing tool.
It provides a variety of solutions that can be used by different types of businesses, making it an excellent choice for ecommerce platforms as well as SaaS companies and other businesses.
Conclusion
It is not an easy decision to choose the right ecommerce payment solution. It is important to choose the right processor for your business and to reevaluate your decision as your company grows. There is no “one-size fits all” solution. It’s wise to assess your needs before you make a decision.
