What is the big deal about choosing credit card processors for e-commerce? You deserve a partner that wants what you want for your online business — success.
But with so many e-commerce credit card processing companies out there, it can be hard to find an ideal partner. That’s why we are giving you a clear breakdown on what to look for in a processor.
We will highlight key technical aspects of payment processing that affect your business.
However, the most critical part of this article will hopefully show you just how vital a good business partner is (using one of the best business partnerships in history).
Below are the topics we are covering for you.
- Simple breakdown of e-commerce payment processing
- Benefits of online payment processing
- Challenges to be aware of
- How to choose a provider that fits your online store
- Three frequently asked questions.
Alright, let’s get going…
Breaking Down E-commerce Credit Card Processing
The details of what happens when your customer hits your website’s “Buy Now” button matter a lot. So, let’s dissect this process that makes online shopping possible and convenient.
When a customer enters their card details at checkout, a secure digital process starts. The most important parts of the process are meant to keep both your customer and your business safe throughout the transaction.
First, the payment gateway (your store’s 24/7 “security guard”) encrypts the credit card information. This turns sensitive data into secure code that only authorized parties (i.e., banks, card networks, and processing companies) can read.
The encrypted information moves to the payment processor — the bridge between your store and the customers’ funding for purchases.
The processor checks with the customer’s bank to:
- Make sure the card is valid
- Confirm there is enough money available
- Look for suspicious activity
Modern technology makes this complex process happen in about two seconds. Very neat. However, that’s only the time it takes for the transaction to be approved. E-commerce merchants don’t receive the payment in their bank account until two to three days afterward.
Without the following security measures, merchants would worry constantly about funds arriving in their accounts:
- Strong data encryption
- Card verification codes
- Address verification
- Smart fraud monitoring
Payment processors handle relaying all the funds. The processor’s payment gateway is the digital “tool” that keeps transactions secure (safe from data breaches and fraudsters).
The payment gateway affects your business’s reputation because customers won’t shop with e-commerce stores that can’t protect their personal data and credit card info.
Benefits Of Integrating Online Payment Processing
In our fast-moving times, digital payments are simply the best way to keep up with customer demand and make your business super-efficient. No e-commerce owner has time for hassles that slow down their operations.
Not only that, but a helpful credit card processor for e-commerce can help you scale your business faster.
By accepting credit cards, you’re already giving customers their preferred way to pay. The bonuses are too numerous to even list, but we’ll start with convenience.
The reason e-commerce is so popular is your audience can shop from their recliner or kitchen table! By offering every payment method possible, you take convenience to the next level for customers.
Studies show that shoppers will abandon e-commerce stores that don’t offer their preferred payment method (i.e., Apple Pay or Paypal). Once a shopper is lost, how likely is it that they will return to your online shop? Way less likely than if they do make that initial purchase.
What about the valuable data insights you get from your payment processing platform? You’ll see exactly when people shop, what they buy, and how they prefer to pay. This information (especially patterns) helps you make smarter decisions about inventory, marketing, and sales strategies.
Below is a quick list of unexpected benefits of a helpful credit card processor for e-commerce:
- Every sale is automatically documented and categorized. This makes tax preparation easier for you or your accountant.
- Accepting credit cards is like a badge of legitimacy that helps you compete with larger companies.
- During unexpected events (like natural disasters), businesses with credit card processing can quickly pivot to online or contactless payments while cash-only operations might struggle.
- Fewer paper receipts, decreased bank visits, and reduced cash and check handling make credit and debit card processing an eco-friendlier choice.
Challenges With Credit Card Processors For E-Commerce
Are there things to watch out for when handling credit card processing in your e-commerce store? Yes.
First, security has to be your top priority. Unsecured transactions will derail the beneficial convenience of shopping online, leaving your sales in a slump or, worse, a freefall. The bad news is that there are more bad actors making a living through online fraud than ever.
The good news? The top credit card processors for e-commerce are better than ever at combating credit card fraud. The best payment processors can help you detect fraud before it happens. That’s a huge plus since it protects you from endless hassles that arise after fraudulent activity strikes (angry customers, loss of revenue, on the phone with authorities, etc.)
Of course, PCI compliance is there to protect customers and businesses from credit card and e-commerce fraud. Yet, don’t you want to go above the baseline for online payment security? A quality credit card processor for e-commerce will help you uphold your PCI compliance and provide fraud-prevention tools that set your online store above your competitors.
The elephant in the room with e-commerce payment processing is… fees.
Credit card processors are in business to make a profit, just like you are. The problem is the sneaky use of hidden fees that many processors slide into contracts.
All processors will tell you they are giving you the lowest rates. However, the only real way to see if they can back that up is if they offer a guarantee. National Processing has a $500 Guarantee. Plus, you can avoid signing a contract with our company.
Before we move on, take note of other credit card processors for e-commerce concerns:
- Chargebacks
- Returns and refund requests
- Integration with your other digital business tools
Choosing The Right Credit Card Processor In E-commerce
We can’t stress how vital it is to choose the best payment processor for your business. A solid provider will be your behind-the-scenes partner that helps make your business a stand-out success. It’s similar to Charlie Munger being in business with Warren Buffett.
Until later in life, Buffett was the partner who got all the attention for his brilliant business mind. Yet, Munger was just as wise. And without a loyal partner like Charlie Munger, Warren Buffett would not be the business goliath he is today.
Sure, Buffett would have been a success story. Without the perfect business partner, though, he and his company could not have become the gold standard in their industry.
The following quote from Mr. Munger may assist you in all your business decisions.
“It is remarkable how much long-term advantage people like us have gotten by trying to be consistently not stupid, instead of trying to be very intelligent.”
As for avoiding a bad decision on your credit card processor for e-commerce, focus on the tips below:
- Processing fees (calculate total fees, not just rates)
- Monthly transaction limits
- Top-notch customer service reviews
- Volume discounts
- Guarantees of lowest fees (in writing)
- Fast response to technical problems
- Set-up simplicity
- Security features
- Offers knowledge base for growing your online shop
Credit Card Processors For E-Commerce Wrap-Up
Credit card processing for your e-commerce business might seem complicated at first, but it’s simply about making smart choices that fit your business needs. A good processing partner will want to understand those needs in order to serve you best.
A great partner wants what’s best for your business because their business will grow if yours does.
Don’t forget that one of the unseen benefits of traditional business partners is filling in gaps. Partners that share their specific talents and expertise with each other fill in the gaps for any weaknesses or blindspots they have as individuals.
That protects their business from everyday hassles and major pitfalls!
National Processing has over 16 years of experience as a credit card processor for e-commerce. What we’ve learned in that time, we share with our customers. That helps them overcome e-commerce challenges and avoid hassles.
If our expertise can help a merchant grow their revenue by ten percent each year, that makes a big impact on their business. That’s not even considering the massive compound effect that kind of growth has over five or ten years!
You deserve the best credit card processor for your e-commerce business.
Join thousands of other business owners like yourself who have joined forces with National Processing for their payment processing.
Sign up today. Our $500 Guarantee means you will get the lowest costs possible.
No risk to you. If we fail to deliver, you get $500. Sign up to test our Guarantee.
FAQ Merchant Services for Online Stores
How do I choose the right payment gateway for my online store?
Consider compatibility with your platform, supported payment methods, security features, and pricing structure. Evaluate potential processors based on their ability to scale with your business. Ask how they can help you overcome competitors in the e-commerce arena.
What security measures should I use to protect my e-commerce store and customers?
SSL certificates, tokenization, encryption, and fraud detection tools. Partner with a merchant services provider offering the most up-to-date security solutions. A top-tier processing partner will care as much about protecting your business and customers as you do. A reliable processor will be ahead of the newest fraud tools used by online criminals.
How can I optimize my online checkout process to reduce cart abandonment?
Offer guest checkout. Having to sign up for an account often makes shoppers leave since they don’t have time to sign up. Today’s shoppers want a shopping experience that fits their preferences and they want lightning-fast convenience. That’s why Amazon invested heavily in the “one-click” checkout back in 1997 and patented that seemingly simple technology.
