If you are selling products or services on your website, you will need to allow your site to accept credit card payments. If you have a small business or e-commerce site, it is instrumental that you can take card payments. With an increasingly online world, this may be one of the main ways that your business can thrive. With the help of a company like SEO Design Chicago, you can have the help you may need to either add card processing to your site or help update the current processing system you possess.
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What Sites Require Card Processing?
If your site has the ability to process a transaction or has an exchange of goods, then you need to have to be able to accept credit card payments. If you have an e-commerce site or any business where a transaction will take place, you need to look into how to set it up so you can process credit cards.
What Are Credit Card Processing Companies?
Credit card processors allow businesses to take credit card payments from their online stores. The credit card processing company allows the transfer of your data from your account or card to reach payment approval, which takes the funds from your account and transfers them to the business account. Without these companies, you are unable to process transactions of all kinds whether that be virtually or in person.
If your business is in need of credit card processing, it’s inevitable that you’re going to need that equipment in order to make it happen. If you have a physical store, you will need a POS, which is a point-of-sale system, a tablet, or a card reader. This will allow customers to swipe, tap, or insert their cards in order to complete the transaction. However, if you are only an online e-commerce store, you will need a virtual terminal instead.
Credit Card Processing Fees
Every single transaction will typically cost a business either 1.5% or 3.5% of each total transaction. For a larger company, these fees are just a drop in the bucket and are typically not substantial to them. However, for a smaller business, this can be a little bit more of a significant expense to them. There are some companies that are a little cheaper than the others, but you want to make sure you find a company that is safe and secure. You want to ensure that you maintain the trust between you and your consumers. Using a good credit card processing company will keep both your customer’s data and your data safe from scams and hacking.
There are a few fees that are included in the percentage the credit card company takes. The first fee is the interchange fee, which is the largest portion of the rate going to the bank that matches the credit card. The next part of the fee goes toward the card network, specifically Visa, MasterCard, or Discover. And the final fee, which is the payment processor fee will typically go to the company that manages the payments, in other words, the credit card processing company.
Example of Processing Fees
For example, Venmo is a great example of a transaction fee that we have all encountered. Once you have accumulated the money you desire into your Venmo account, you have the option to transfer that money into your personal bank account. You have two options: to allow three business days for the money to appear or to do an instant transfer. If you are choosing to do the instant transfer, you are then informed that Venmo will take a portion of what you are transferring and keep it. There is a 1.75% fee that the processing company will keep as their own from your total. Essentially, you could wait a few days for the money and receive all of it or get it within 30 minutes but lose a portion of it. While we may not see all transaction fees, they are always there and included in each transaction that is processed.
How to Accept Online Payments
There are many ways for online businesses to accept payments online. A few of the different ways are payment gateways, mobile payments, and recurring billing. Here, we will take a brief look at these methods of payment.
Payment Gateway
This method of payment is essential for businesses that accept digital payments specifically. Whenever customers complete the purchase, their personal banking information is transferred to the payment gateway.
Mobile Payments
This can occur whether you are in-store or online. Examples are Apple Pay or Google Pay or if you’re paying on your phone or through your computer, which also has your information saved. However, you can also pay in person at the store. If the store’s reader accepts mobile payments, then this is one of the ways they can allow it to happen. Another version of this is called contactless payments.
Recurring Billing
With this method of payment, it is something you sign up for and you continuously have to withdraw each month. Every streaming service you subscribe to is a form of recurring billing. Another example of this would be a gym membership.
How to Accept Digital Payments
First, you need to figure out what type of payment you would like to accept. Ideally, you will use the payment options that customers use the most. In order to avoid shopping cart abandonment and losing sales due to the lack of payment options, you need to ensure there are as many methods as possible.
For example, you will want a payment gateway to allow your business to accept additional payments. However, you’ll also need to identify a payment processor that is compatible with the different forms of payment you’d like to accept. If you are looking for a one-time payment, you do not need to find a company that has recurring payments. On the other hand, if you want to convert one-time buyers into returning customers, then finding a company that can provide that option is very helpful. If you are a site that sends products each month, then you want to look for a site that offers recurring payments.
Best Card Processing Sites
You will need to find a credit card processing company that meets your company’s needs. For example, you might need a company that specializes in e-commerce stores, high volume of sales, interchange plus pricing, or an all-in-one system. One of the more popular and well-known companies is Square. If you purchase a product from someone using their mobile phone as the POS system, they more than likely are using Square.
Whether you are using Square, Helcim, Shopify, etc., there are many sites that can help you get what you need. If you are unsure of where to start, SEO Design Chicago can help you guide your business forward. Contact one of our agents for help setting up the processing site or finding out which one works best for you.
FAQ:
- What kind of sites need credit card processing?
- What are credit card processing companies?
- How can you accept online payments?
- What are the popular card processing companies?
- How much are credit card transaction fees?
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