Ecommerce has made such an enormous impact on the way businesses are conducted in the 21st century. With the advancement of technology, more and more businesses are have an online website where they take card payments once they have set up a merchant account.
The ease of setting up an online merchant accounts makes it easy for customers to visit your website, choose the product they want and order in the checkout with confidence. If you run an online store with an online payment gateway to take cash payments – your merchant services may even link to your instore ePOS equipment. This will allow information related to orders, stock, price, discounts and vouchers used in online transaction to be recorded. All these are only possible if the online business has successfully set up their ecommerce merchant accounts.
So in essence if you own a business-to-business (B2B) or business-to-consumer (B2C) website or shop, or maybe planning to venture into one, take your business a notch higher than your traditional competitors by linking your ecommerce website with a fully functional merchant account and make your customers shop with ease.
An Introduction to Merchant Accounts
If you know the concept of traditional banks, then understanding how merchant accounts work should be easy. Merchant accounts are special depository accounts that are funded simply from payments gathered through debit and credit card transactions. These merchant accounts hold the funds captured from various payment gateways and then transferred to traditional bank accounts, depending on the cut-off schedule which can be weekly or monthly.
An Introduction to Payment Gateways
One trend that is not going to change anytime soon is that customers are now paying more and more through credit and debit cards both online and offline. We now live in a “cashless society.”
To be able to process a sales transaction through debit or credit cards, information about the cardholder must be verified first. There’s a need to confirm if he or she has enough available funds or credit limit to pay to make the purchase. This is no different than in the past when you made a payment instore and the cashier will check if you had enough money before accepting your purchase whether this would be by cash or with a credit or debit card. Verification is needed in all payments.
Take this concept and apply it to an online ecommerce store, then you will get the basic picture of how an efficient payment gateway should work. When a sales transaction is done online, the payment is made through the payment gateways. The payment gateways act like as the ePOS that receives the sales payment transactions online, connects to the Visa or MasterCard, and verifies the cardholder’s issuing bank for the availability of funds or credit limit. Once sufficient money is confirmed to cover the amount of the sales transaction, the payment is then authorized and the cash is transferred automatically from the cardholder’s bank into the merchant accounts.
The Need For an eCommerce Payment Gateways
Every so often, merchant accounts and payment gateways are arranged and integrated into one payment facility. This merge between ecommerce merchant accounts and payment gateways is essential to the fulfil elementary consumer protection rights. Since the cardholders deserve to receive the goods or services they have bought on credit, they must have enough security. In the case that they do not receive the promised goods or services, they must be able to get their money back without
With the increasing popularity of credit and debit card usage worldwide, being able to provide customers with an easy and secure way of using their payment cards is an advantage to an ecommerce store taking card payments.
Tips on Getting eCommerce Merchant Accounts
Setting up an online merchant account could not be easier although there are a lot of important things that must be carefully considered like security, maintenance costs, annual fees, customer support, and government compliance.
Have a look at online reviews and other peoples experience with the merchant accounts provider. Make sure that they are reliable and dependable. As an ecommerce site that runs 24/7, you can’t afford delays in crediting of transacted funds. You can also look for providers that offer low service charges and reasonable chargeback processing fees. Confirm the service provider’s scope and coverage in terms of the market it operates in, currencies accepted, and countries supported. Additionally, security measures and regulatory compliance must also be taken into consideration to minimize risk exposures to your ecommerce business. Lastly, a good customer support must also be carefully considered.
There are many ecommerce merchant accounts service providers that are popular today. Check this list to see some of the best merchant accounts service providers on the market.