Choosing a Payment System for your Online Store: Main Options and Tips
Payment System for your Online Store – Comfort, security, and payments in two clicks – all these are just basic benefits for customers using payment systems at online stores. Site owners enjoy plenty of benefits, too. Without the online payment feature, you’ll lose hundreds of potential buyers to competitors, while Google won’t be showing your ads, causing even more damage to your business. Add simplified accounting, and there will be no reason to neglect online payments. But if so, then how to choose the appropriate one? Let’s figure this out.
How to Tell if the Payment System is for You
First off, you got to make sure your system to-be fits five main criteria:
- Pricing. Some operations may come with a fixed percentage or be free on certain conditions. The tariffs are constantly changing, but they’re always available for comparison on providers’ official websites.
- The target audience. The main task of payment systems is to speed up payments for customers. so their preferences and location are the two major factors. For instance, it’s no secret that Amazon Payments without a strong tie to banks is now booming in the US. The lifestyle of your TA also matters. Regardless of the location, your customers may prefer classic PayPal or Masterpass.
- Speed. It’s great when your customers can pay in two clicks, but it’s even better if you can withdraw these funds just as quickly.
- Complexity. Most payment services have ready-made modules for connecting to popular CMS and APIs for more complex integrations. Some service providers even offer help with connecting their payment systems.
- Features. Depending on your business, you may need to implement multi-currency, mass, or recurring payments. Exactly has all and comes with free tech support.
Types of Payment Systems
You can choose between four main types: Internet acquiring services, payment gateways, e-wallet operators, and aggregators. The final choice depends only on your tasks and target audience, as each option has its advantages and disadvantages.
It’s a classic option of payment by card with the transfer of funds between the buyer’s and seller’s accounts through a secure processing center. It’s the safest money transfer method using 3D-Secure and state-of-the-art data encryption. But only a legal entity can use Internet acquiring, and transactions take longer than when using other services, due to a thorough check of the data.
An e-wallet is an alternative to a bank account, but its principle of operation is similar. You also need to conclude an agreement but only with the operator and integrate the payment system into your website. As for pros, customers who use the e-wallet you integrated will have little-to-no difficulties with payments, regardless of their location. On the other hand, some operators have restrictions on the amount you can withdraw at a time.
Payment gateways are universal intermediaries that redirect the transaction to your bank. They’re not tied to banks and wallets and work not only on sites but also on terminals. All data is encrypted. The more your turnover, the lower the commission. As for the downsides, connecting the gateway itself and coordinating work with different services will take more time than integrating just one option. In addition to the commission, you have to pay for a subscription to services.
These are intermediary services that, unlike gateways, first accept the client’s money to their account, and then send it to the destination. Aggregators are the easiest to integrate, but they come with a double commission (one to the aggregator and the other to the bank), and the level of transaction protection is mediocre, to say the least.
The payment system for an online store should suit you and your customers. Find out the preferences of your target audience and compare the rates and conditions of various services. Make sure that your site meets the requirements of the payment system, while the latter meets your needs.
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