How to conquer transaction processing for a successful ecommerce?
As we know, Payment Gateway is a required element of any website that processes payments online. A business owner is fully in charge of choosing the service provider. Understandably, this is an important decision, as all the payments on your website will be processed by the selected company. Hence, this blog post is intended to equip entrepreneurs with the information needed to select the best payment processor for their needs.
State of Online Economy
Today, online stores play an important role in the lives of many businesses. The revenue from ecommerce retail sales is estimated at $394.9 billion dollars in 2016. Moreover, the U.S. Census Bureau reports a 15.1 % increase in online sales between 2015 and 2016. Overall, the percentage of online sales in the total economy is growing.
UPS Yearly Research
Businesses now have to offer a convenient way for their customers to purchase items online. Furthermore, every year a shipping company, UPS, conducts a shopper’s survey to identify current trends. Of course, their reports indicate that mobile users play an increasingly important role every year. In addition, many factors affect purchasing decisions, e.g. the availability of payment options, shipping and returns policies, as well as the speed of transaction.
Summary video of the recent survey.
Payment Gateway is not the same as merchant services
As soon as an online store is opened, it must be connected to a payment gateway which will process its transactions and secure sensitive information. Incidentally, payment gateway service is often confused with merchant services for in-store payment. Actually, these two services may be separate or provided under one umbrella. It is based on the agreements between companies, as shown in the table below. Meanwhile, banks that provide merchant services typically work with their preferred payment gateway company. They will sign you up with that company by default.
However, any online store can also independently select its payment gateway.
For example, the in-house payments at a restaurant might be processed by Oracle’s Micros Systems Inc, while Amegy Bank provides the merchant services. At the same time, to-go orders placed online on the restaurant’s website can be processed by Authorize.net, with balances transferred to Amegy Bank as well.
Choosing the ‘best’ payment gateway.
Actually, all payment gateways must comply with the same security rules, provide same set of standard payment choices, and competitive fees. No doubt, a better question to ask: ‘Will this payment gateway suit the needs of my business?’ Below are additional important considerations.
Where are your customers located? For example, PaypalPro is present worldwide. However, BluePay and WePay are present in US and Canada.
What is the expected monthly revenue from the online store? Stipe has a no monthly fee, BluePay will offer a more competitive transaction fee, and PaypalPro provides volume discounts.
What is your website’s content management system (CMS)? Each CMS, e.g. WordPress, Shopify, OpenCart, and others, have preset hustle-free solutions.
What is your client’s pain point and is there an opportunity to overcome it using ecommerce?
Comparison of Payment Gateways
Ultimately, most payment gateways provide quick books integration, and are PCI compliance ready. Moreover, to be among the most popular payment gateways, it is common sense to offer all major credit cards as a method of payment.
As a result, we reviewed the best payment gateways and prepared this infographic.
Would like to read more?
- Merchant Maverick overall, and the article about Payment Gateway Features in particular.
- BluePay Blog.
- 2016 UPS Pulse of the Online Shopper™ Report.
- 38 Indispensable E-commerce stats to inform your 2017 multichannel sales strategy.
To learn more helpful hints, subscribe to our blog!