Credit Card Processing for E-Commerce: Top 5 Benefits for Online Merchants
People prefer using their debit or credit cards because it is quick and easy. They don’t want to go through the hassle of transferring money to an account from their bank; they just want to dip their card and pay. That is why so many online businesses these days accept credit and debit cards.
Most business owners probably don’t think about using the best credit card processing companies before starting their business. There are so many important things to do when starting a company. However, most people don’t consider credit card processing as one of them. You can’t just plan on dealing with cash in hand when running your business. You are bound to have customers who want to pay by credit.
It’s so easy to accept a credit card online. That’s why more and more businesses are looking for the cheapest way to process small business credit cards. Once you set it up, all you have to do is log into your account and approve or decline the transactions. To help you make the right decision, here are five reasons to use an easy card payment processor.
- Secured Payments
Most merchants are concerned about their security when they accept credit cards online or in person. When using a third-party merchant service provider like PaymentCloud, PayKickstart or PayPal, they take on the risk associated with accepting credit card payments from customers who may not pay their bills.
This means that if someone tries to use an invalid credit card number or has been hit with fraud charges because of any illegal activity, then it is up to them (not the merchant) to cover any losses incurred by these transactions. The processor takes care of all the sensitive information, so you can focus on growing your business.
- Fraud protection
The most common issue that online merchants face is frauds. As they receive payments through different channels, they need to be careful about the security of their customers’ data. With an effective credit card processing system, you can make sure that your customers’ data remains safe from any kind of fraud or hacking attacks.
With credit card processing, you’re protected from fraud by the bank or company that handles your account. If someone charges your account without permission, your processor will cover the cost of any unauthorized charges and return them to your account. This way, you won’t lose any money if a charge isn’t authorized by the customer.
- Quicker Transactions
When a customer uses a credit card to pay for your product or service, the money from their charge will be available in your account within minutes. If you accept checks or money orders, this process can take weeks or even months, depending on how quickly the check clears. This means that if you’re selling something online now, you’ll miss out on potential sales if you don’t accept credit cards as well as other forms of payment.
- Less Setup Costs
You may have heard about the interchange fee that banks charge merchants who accept credit cards. This fee indeed exists, but there are ways to reduce it. Monthly fees and setup costs are nonexistent when using a merchant account. Credit card processing companies don’t charge any monthly fees or setup costs because they want to ensure you’ll continue using their services monthly.
Most credit card processors don’t charge any monthly fees for processing or maintaining an account with them — unlike merchant accounts that are typically required for offline businesses like retail stores or restaurants that accept checks and cash but not credit cards directly from customers.
- Guaranteed Positive Cashflow
The biggest benefit of credit card processing is the improved cashflow it provides. When you use a merchant account, you get paid immediately when customers purchase with their credit cards. This means you can sell more products, pay your workers and pay your bills quicker than if you used cash only.
The money you earn from credit cards is already in your account, while checks and money orders can take up to two weeks to clear. This gives you more time to pay bills and other expenses, which means less stress on cash flow and more money available for future expenses like payroll or expansion.
The world of electronics and technology is rapidly changing, and retail businesses must keep up or risk being left behind. From the get-go, credit card processing can help businesses make more money because it eliminates the need for cash transactions.
As with all businesses, it’s important to gauge the risk of signing up with any service. Before making your final decision, ask yourself the following questions: How much is this credit card processing company charging me? Are they offering discounts for signing up? How reliable is their system? Is the company reputable and stable? Are there any hidden costs? And what is their track record with helping other businesses like mine succeed? By asking these questions and doing your due diligence, you should have a better idea of whether or not to proceed.
Perhaps one of the most beneficial aspects of credit card processing is the things you gain access to. You get to work with companies who know what they are doing, while making sure your business is secure. When choosing a credit card processor, research each company thoroughly to ensure that you have made the right choice.
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