If you want to have an ecommerce website for your business that is beneficial for you and easy for your clientele to use, then you must have a payment processor. There are dozens of payment processors out there, so it can be difficult to know which one is best for your specific needs.
If you are new to the world of ecommerce, then it can be a bit overwhelming. Since everyone has different needs and preferences, it may be necessary to have more than one payment method in place. So, to help you determine what payment processing option(s) will be best for your website, we have researched several options.
Accepting payments online has become increasingly popular for businesses – especially with many people opting to shop from home rather than venture into the store.In fact, every year nearly 230 million people shop online. And since the COVID-19 pandemic hit, that number has only increased, with a study in April showing that e-commerce increased by 49% compared to March sales; online grocery sales increased by 110% and electronics sales went up by 58%.
PCI Compliant Processors
With numbers like those above, one can’t help but realize that it is not only important to have a payment processor on the company website but to choose one that will work effectively for everyone. In addition to choosing a payment processor that effective and efficient, it is also important that the one you choose is also PCI Compliant (Payment Card Industry) to avoid the stress and headaches of those processors that do not.
Benefits of PCI Compliant Processors
Your system is secure and your customers can trust you with their information.
Your reputation is improved with clients and payment brands.
It is an ongoing process and is designed to minimize the risk of security breaches and data theft.
You will be better equipped to meet the standards of HIPPA, SOX, and other related agencies.
Improves your company’s IT infrastructure’s efficiency.
Boost the effectiveness of your company’s security strategies.
Extremely low risk of lawsuits, insurance claims, canceled accounts, payment card issuer fines, and government fines.
However, it should be noted that avoiding PCI Compliance liability by using a service that doesn’t require complicated questionnaires or quarterly website scans is a good thing to investigate for many businesses. Making your website and business PCI compliant is necessary for some payment processors. However, you may be able to avoid that headache by using payment providers who pass all payment data to a third party, such as Paypal or Stripe so you are not required to jump through PCI compliance hoops, which can be very time consuming and expensive. This means that because you do not accept sensitive payment info direct on your website, you are not liable should that information get intercepted or compromised. And you won’t have to complete annual questionnaires with very complicated technical information about your business’ security practices.
Pros and Cons of Popular Payment Processors
Consider these pros and cons of some of the most recognized payment processors out there.
Accepts all major credit cards plus digital accounts like Apple Pay and PayPal
Advanced Fraud Detection
Available in the U.S., Canada, Australia, the United Kingdom, and Europe
Works with companies of all sizes
Accepts payments from around the globe
Money is received and transferred to your bank on a two-day basis
Allows users to save card information and data for later use
Charges and initial setup fee of $49, an ongoing monthly fee of $25, plus the transaction fees of 2.9% plus $0.30.
You are responsible for PCI Compliance requirements
Works best with a merchant account
Quick Tips for Selecting a Payment Processor
It can be overwhelming to decide on the best payment processor for your company website. To help out, keep these tips in mind.
Take your time studying both the percentage rate and the per-transaction processing fees. In a perfect world, you want both of these numbers to be low. That said, since fees are inevitable, a good rule of thumb is that if you process a lot of small sales then that $0.30 fee adds up quickly, whereas if you have larger purchases then the per-transaction fee won’t be a problem.
If you have a low processing volume then choose a service like Square or Stripe or other payment processors that don’t charge monthly fees.
If you have a high processing volume then monthly fees won’t be an issue, but you will want to have as low a processing fee as you can get.
Selecting the right payment processor for your needs will take some time, but it will be time well spent. If you have questions about how to properly get set up to accept payments on your website, contact us. We’d be happy to help!