Understanding Online Credit Card Processing in Layman Terms

Ecommerce customers look for comfortable payment options. It’s vital to the success of an online store. With varied options like Google Pay and Apple Pay, customers look for convenience. They want to convert more options for themselves. This is where online credit card processing gets into the picture.

Without this option, you’ll end up getting baffled about the whole situation. You already know why you must use credit card processing. But, you might not be sure of how you set it up. How much will it cost? What is in the application process? 

You’ll get answers to all these questions in this quick guide to credit processing.

Online credit card payment processing is a process used to accept payments. Customers can pay via MasterCard, Visa, American Express or Discover. When you swipe a card at your local gas station, you feel at ease. Online shoppers get a chance to swipe with online credit card processing. The major difference is that there isn’t any physical terminal for facilitation. That’s where online card processing comes into play.

For a bigger picture, you must understand it’s also known as having a merchant account. The chain of events needs a payment gateway. The payment processor shares and moves the information online. This is to make sure that the business owner receives the customer payments. The transaction might take a few seconds but there are a lot of behind scenes in this picture.

The question now is – Should you use Paypal or sign in for a merchant account? There are many businesses that opt for Paypal services, while some go for Google wallet. That’s because of the convenient setup. But, such backups also have their drawbacks.

Reasons Why You Must Go For Online Credit Card Processing:

Customer Convenience – 

With a merchant account, the credit card process gets quicker. If you accept only Paypal, the customers will leave your site. Log in to their own Paypal account and create one to finish the transaction. Every customer wants to avoid the delay. Nobody has the patience to wait that long. Most of the customers aren’t willing to take that extra step. That’s why you must opt for credit card payment online processing services.

Quick Payments – 

With a merchant account, you can receive the payment in less than two days. Funds are directly transferred to your bank account. But, with the third-party services, it might take longer than 3-4 days. This is a headache for the clients. Especially, when you’re trying to settle up at the end of the month.

Sustain Business Growth – 

As the business grows, third party services look lame. They are no longer cost-effective. Because of the high transaction fees. As the customer base expands, you’ll need the payment options to satisfy the demand. For this, you must opt for online credit payment processing services.

Personal Support – 

With a merchant account, you’ll receive personalized customer support. The third-party services phone support is available for the highest tiered customers only.

Moreover, using third-party services like PayPal will hinder customers’ perception of the business. If you aren’t accepting credit cards via your site, it will dampen your credibility. The entire e-commerce operation leaves shoppers wondering whether it’s legitimate or not.

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