When you have an eCommerce site, you will need to have a payment processing method, at least one but the more the better. Studies have shown that the more options people have to pay for goods, the more money they are likely to spend, and they are more likely to make a purchase. This latter idea is important. One of the biggest problems that affect sales for an online merchant is shopping cart abandonment, and one of the biggest reasons for this is not offering your customer the payment option they are most comfortable with.
Using payment aggregators
Because of the popularity of online auctions, there are many people who like to use the payment system they are familiar with at auction sites. People often have a balance in their account that they can use to buy goods online. However, not everybody likes to use these types of payment systems. The truth is that there are not very many of them. In fact, the top two or three payment systems are usually all you have to offer your customers. You can do your own research on which ones are best for your business, but as long as you offer something that people like this will be sufficient.
The problem with aggregate payment services
The reason that many people do not like using these third party companies for paying is that they take you away from the site you’re at to make payment. For people who are not accustomed to this, it can be off-putting. Although you don’t need to have an account with these third party payment businesses, most online buyers don’t understand why they are going to another website for payment. All you need is your credit card, but who exactly is the credit card number being given to? There are people who may be ready to buy from you, but the third part payment service you use is a deal breaker.
Get a merchant account
You can take credit cards just like any local business in your community does or any of the large websites on the Internet. Like any other business, you need to have a merchant account set up. The good news is that you don’t need to go down to your local bank to open a merchant account. There are many good online banks that are ready to help you. In addition, there are different merchant account services for different types of companies. If this is your first time with a merchant account, there are banks that specialize in helping the new business owner. Also, if you anticipate low volume sales, there are banks that are geared toward helping the eCommerce business owner with low sales. This is important because merchant accounts will usually have a minimum deposit to open the account and a minimum amount of monthly transactions. When you shop around for a merchant account, keep this in mind.
After you have found the bank you want to do business with, they will have a process where you deposit funds into your account to get started, but before you do this, you will need to make sure that your gateway program is compatible with your shopping cart. All of the best online shopping carts can integrate with all of the popular gateways.