Choosing an Online Payment System for Your Business
Determine Your Needs
While most payment processing needs are straightforward, small differences can make things easier for you and your business. For example, if you also sell items in person, getting a payment processor for your phone is also an option. Some companies will send you a card reader that can be plugged into a smartphone for an additional fee. If you are just seeking an online payment system, determine if their system can be easily implemented on your website to narrow down the search. The reason for this is that installing a system that isn’t compatible can take extra time and money, which is why many people prefer to start looking at compatible systems.
Find a Provider
There are hundreds of different online payment systems out there. However, finding one that works for you doesn’t have to be difficult. The best way to find a good service is by doing a quick internet search. By doing this, you can find a reputable provider which have lower costs, better security and even bonuses at a great rate. If you work in an industry that is not allowed by these larger processors such as the medical or some produce industries, you will need to go through a less-known company. A great way to find one of these lesser known companies is to ask other businesses in your industry what they are using, or check that yourself by visiting their website.
Verify the Costs
Due to the different pricing models in the online payment processing industry, you will need to calculate which pricing model is most effective for you. The basic pricing model is the most common. Most payment processing companies charge a flat setup fee, plus a percentage of each transaction. This is usually around 2%. Remember, if you sell a product without a 2% markup to make up for the difference, it will dip into your profit margins. Some companies offer a monthly payment option, which usually includes a flat monthly fee, plus a lower percentage, usually less than 1%, for each transaction. In some cases this could save you money. In others, it could end up costing you more. This model typically works best for high priced products, or companies selling in high volume.
Check for Proper Security
Security is one of the most important aspects to online payment processing. Any company that lacks proper security should be avoided. Checking for Secure Sockets Layer (SSL) security and other anti malware programs with the provider is important. A simple way to check for SSL security would be to look for a green lock on the left of the URL. Clicking on this link and making sure it matches the domain verifies that the website truly is SSL secure. Not only will this protect the identity and private information of your customers, but it will also prevent you from being involved in a lawsuit.
Implement the Service
Once you have gone through and found an online payment processor, the final step is to implement the service. If you chose to have a physical credit card processor, be sure to follow the instructions once it arrives. Setup for these is usually straightforward. For those who need a virtual processor, you will need to install it on your website. Some websites made with Wordpress might have plugins that make installation easy. Others will need to be added to the website code. If you don’t have the ability to do this, hiring a web designer to help save time and make sure it’s done properly.
