Merchant Services
Published November 03rd, 2016 by

Merchant Services Why Accepting Credit Cards Is Now a Must

Merchant Services Why Accepting Credit Cards Is Now a Must

Your company will soon look for the best merchant services in order to incorporate the use of credit cards in payments. In order for your business to turn into an effective e-commerce or retail site online, it must accept electronic payments instead of pay upon delivery. Pay upon delivery could still work, but the idea of merchant service is to provide ease to your customers, which is the number one thing to offer.

If you want more sales, you have to go with the flow of dotcom businesses advancement. For the past decade, e-commerce websites have grown from integrating common methods of payment to acceptance of credit cards.

At present, as an internet merchant, you should process credit cards that could be obtained through banks. In other words, the line of credit cards is somehow extended to you.

How Credit Card Processing Solutions Work

Credit card processing solutions are the keys for merchant service industry to survive. If you will browse websites, you will see nothing but credit card-based websites for it is what makes customer experience convenient and transaction faster.

Primarily, you have to understand the elements involved in the processing solution. First, there must a merchant website or the platform where products could be bought. An e-commerce website must have a product catalogue and the now-popular shopping cart.

Second, the customer must have a computer, tablet, or mobile phone to use in order to surf your website. The gadget should also be running in a web browser to launch your site. Commonly used web browsers are Google Chrome, Internet Explorer, and Mozilla Firefox.

Lastly, the process will not be complete without the payment service provider of (PSP). The provider is a company offering online payment services through bank, such as credit card, direct debit, or bank transfer among others. The proper works under a merchant service agreement wherein a software will serve a model for the payment gateway from customer to checking out.

PSP could connect to a network of payments, cards, and banks. This is the reason why most firms are now relying on PSPs than on financial firms for payment options. It could manage technical connections while reducing the time of establishing connections from one bank to another payment system during operations.

Once all the elements are set, credit card processing could already take place. Primarily, if the customer was able to choose a product, he or she could proceed to your website’s payment module.

The payment module will include a form where you will collect the card data of your customer. The completed form will be sent back to your customer by your online system.

After the site displays the data for your customer, he or she will then check for errors. If there is none, he or she will press continue or OK.

Once the customer presses whatever button to process, his or her computer will send the credit card information to the PSP. The PSP will then receive it and send to the payment system for authorization.

The authorization could be done by the PSP alone, merchant website, or both of them.

Credit card processing system is more secured at present, especially now that detection fraud is now possible. Card verification number or CVN is required before you could proceed into using the credit card. The CVN is usually located on the card’s back. The authority approving the customer’s account information could detect double-dealing if the CVN does not match the information stored in its accounts database.

Top Benefits of Accepting Credit Cards From Consumer

There are several reasons why you have to look for merchan service companies that could simplify your online payments system. Among these reasons are the benefits of accepting credit cards in your e-commerce site.

According to retail data on N Channel statistics on e-commerce payment systems, as much as 66% of online consumers abandon their shopping carts because of payment process problem.

From this given fact, you will now have an idea why credit card payments have been adopted by most retail sites.

Primarily, credit cards help legitimize your business. By simply displaying credit card logos on your website, you could already attract customers to deal with your business. It is a sense of trust that would encourage them to browse your product catalogue or buy the next.

Increased sales are another advantage of accepting credit cards in your retail site. Credit cards give people impulse to buy more. If your website only accepts cash, you will observe that your customer base will reduce little by little.

You will not only increase your business returns through opening doors to clients that can or cannot pay cash for products. Instead, you could also gain higher profit as you break geographical barriers. Having a credit card payment system could make your business cater to customers around the world any time.

The convenience is always there with a credit card payment solution. Rather than withdrawing money from ATM or getting cash, customers could use their credit card information to buy any of your products. Worrying about payment could be done later.

You play in the competition well if your retail site accepts credit cards. Businesses today are already accepting credit cards, based both locally and on the internet. In order to survive, you have to adapt with the advancement.

Even if you just a startup, cash flow improvement is also in your hands with best merchant for a small business. Credit card transactions typically eliminate the disadvantages of billing, clearance of checks, and payment collections from customers. You will be required to handle less cash since the proceeds of your sales will be directed to your bank account. Usually, it takes two days.

Credit card processing system may appear costly, but it is relatively inexpensive. With various providers of merchant services in the competitive industry, you will surely find a package that suits your budget. At present, even the processing rates of credit cards are low. Small businesses could also cover the costs involved.

Start Receiving Credit Card Payments for Higher Business Sales

You could start investing into credit card payments for your retail site. It takes more than reading the reviews of merchant services to make it happen.

First, you have to know who you are dealing with. You have to identify the issuer of the cards, which are banks and financial firms handling customer accounts. In addition to his, you have to be aware of the acquirer, which is an organization that handles the authorization, processing, and transaction settlement. Lastly, you also have to recognize the credit card scheme, such as MasterCard, Visa, or AmEx.

The costs matter in dealing with providers of merchant services. Most of the time, terminals will quote based on the credit or debit card processing, which works through chip and PIN transaction used in your country. This is considered the safest for it verifies whether the current person handling the card is the genuine holder by using the PIN. Since it is secured, it is offered with the lowest fees.

As mentioned earlier, security must be present in the credit card payments system. This will not just save you from losses, but keep your customers trust.

Most importantly, you have to be aware of the basic charges from merchant services. For a typical transaction, premium charges and authorization fees are added to determine the amount of transaction. The premium charges include processing costs for transactions. The authorization fee, which is also termed as bank statements, may also be added.

There must be an agreement enclosing the Payment Card Industry Data Security Standards, which ascertains your payment software and hardware are secured.

If there is a breach in the payment card ecosystem, many merchants will be affected, influencing the credibility of financial institutions. This could result to enormous fallout on financial liabilities and operations. Following this are reduced sales, legal settlements, fines, termination of credit card acceptance, and job cutoffs all at the same time.

The said consequences are just a few warnings for you to avoid violation of the PCI requirements. The agreement does not eliminate the possibility your data could also be hacked. Yet, credit card companies would consider this a fault on your site. To avoid problems such as data breach, some organizations pay for cyberinsurance.

Cyberinsurance is a financial assurance covering the damages caused by data breach to customers, donors, and constituents among others.  It manages the crisis after it happens.

Within a week of signing your agreement, your e-commerce site could already operate with credit card payments system. Experts just advised that before you make your website live for customers, you have to countercheck your business areas. For instance, double check if your finances are doing well and your tax returns are filed timely.

It would be quite difficult to choose the right provider of merchant services in a pool of companies. To help you with this, could give you trusted and unbiased reviews of merchant services that could get your business going with credit card payments.

Keith Moore

Keith Moore has worked with several leading Android development agencies to build customized mobile apps enabling businesses to extend the use of their services to smart phones and mobile devices.

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