Third party payment
In today’s day and age, there are thousands options to choose from when it comes to payment gateways and payment processors, so, choosing the “best” one can be challenging. Unfortunately, this question can’t be answered fully without considering several different variables as they relate to your specific e-commerce site.
For example, the size and origin country of your online marketplace will play a large role in which payment processors will work with you. And if you’re a startup, there are some companies that won’t even consider partnering with your business. If you fall into the latter category, this article can help you to understand and overcome the payment processing hurdles many startups encounter: Challenges of Startup Merchants The series of articles linked to above goes into much greater detail, but here are some additional considerations you’ll have to think about when making your payment gateway selection: · Software: Although some processors offer free applications for startups and low volume needs, high-volume websites may have high costs up-front to purchase the payment processing software. Additional software costs include security upgrades, software patches and updates, and the costs associated with scaling the software along with business growth. · Equipment: This could mean mobile card readers (Square, etc.) or POS card readers if there is a brick-and-mortar store accompanying a website. (Some stores manually run credit card transactions for their online storefront) · Misc. Fees: Usually hidden in the small print, miscellaneous fees tend to pop up over time. These can be anything from installation charges to penalties for early service termination. · PCI Compliance Costs: Often the most expensive and important aspect of a website's ability to accept online payments, these expenses can be quite high for some e-commerce platforms due to the need for ensuring the security of consumer credit card data. · Chargeback Fees: Generally speaking, any time money is returned to a customer from a credit card transaction, the merchant must pay an additional fee to the payment processor. · Sales Processing Cap: Not every processor can handle monthly high-volume sales. Some specifically specialize in start-ups and small businesses for that reason. Knowing a processor’s standard sales volume limit is essential. · Online Transactions: Depending on how often the payment processor consolidates transactions for processing, merchants might pay weekly, monthly, or custom batch processing fees. · Monthly Maintenance: This category pertains to merchant account management, tech support, customer support, and basic operational costs for the merchant’s software. · Interest and/or Flat Fee per Transaction: Each time a merchant accepts a credit card payment, they must pay a per-sale fee. Some processors will also add an additional fee based on a fixed percentage of the total value of each sale.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. Archives
December 2018
Categories |