Today, going online has become a common choice among various businesses. The myriad of benefits it provides is unavoidable if you run an online business. Nevertheless, there are some precautionary measures that should be taken care of, before entering into online business arena. Before we get deep into such preventive measures let us widen our horizons and learn some nuances of online business; also referred to as e-commerce.
E-commerce is the term given to an online commercialization of your products and services. If you run a physical business and want to cover the global customer base; you would like to expand your business on the world-wide web to reach out to those customers and make your presence felt at global level. For conducting the business on the electronic environment, the prerequisite for any business is the availability of a user-friendly, vibrant, and cutting-edge e-commerce website. An e-commerce website can be integrated with other websites using the HTML editor.
Know the Types of Cards before you Accept them on your Website
Credit card: Most widely used payment card that creates a line of credit for the cardholder.
Debit card: At the use of such cards the payment is made directly from the bank account of the cardholder.
ATM card: Such type of cards is used in an ATM machines for the deposits as well as cash withdrawal.
Charge card: It is similar to the credit card besides that the cardholder is asked to pay the required fund of the monthly-statement-amount.
Stored-value card: Unlike debit card, Stored-value card includes the fix amount of money that can be withdrawn from the corresponding account. However, it is similar to debit in other aspects.
Fleet card: This type of card is mostly used for the payment at the gas/fuel stations.
Other types: Gift card, Scrip, Electronic Purse
Significance of Accepting Credit Cards
With the wide usage of credit cards many businesses have now switched to the card payment mode of transaction. Accepting credit card has become a basic requirement particularly for online business and physical businesses in general. Every business man strives to provide their customers with the best online payment solutions. In fact it is more convenient mode of payment from the buyer’s perspective as well. There are numerous advantages added with accepting credit cards. Firstly, accepting credit cards has become a popular choice as eliminates the risk of accepting a bad check. Secondly, getting a set-up for online payment is quick process. Thirdly, a buyer can purchase the product and make payments at any given point of time, thereby boosting your sales. Fourthly, the seamless transactions it provides improve your cash flow; encouraging buying in general and impulse buying in particular. Fifthly, it is considered as an inexpensive business expense. Sixthly, accepting credit cards legitimizes your business. Lastly, the most important aspect of accepting credit cards is that it provides you the level playing field with your competitors.
Things you need to know before you accept credit card on your website:
Accepting credit cards’ payments could sound like an arduous job but with the help of an efficient online payment solution your work could become less stressful, on the other hand you could exploit its advantages. As e-commerce website involves online financial transaction, utmost care should be taken, before providing such online payment processing solutions.
Helpful Link: Benefits to merchants
Compatibility: There are numerous cards available on the market that serves the payment purpose. So, before you make any choice of the online payment solution, consider the compatibility of that payment solution with the type of card you would like to accept.
Equipment- In order to process any credit card, business needs equipment which enables their website to capture credit card details. Internet Processing Software is the most popular merchant’s choice. You should look for a provider that allows your website to automatically process credit card orders securely whenever your customers enter them, 24 hours a day, 7 days a week. It is rare to find a processor that lends the equipment without any charge. What happen mostly is that companies need to buy them. Depending on the type of technology it uses, the equipment could cost you somewhere from $200 to a few thousand dollars. However, this cost could vary from brand to brand; otherwise, you can also lease the equipment if your budget doesn’t allow you. Nevertheless, before signing any lease, look for the time period it is valid. Additionally you can take help of the internet search and explore your options before you land at any solution.
Set-Up Cost- Many providers will offer you some start-up fee which is for used as an application fee. This fee again differs from brand to brand which could range somewhere $50 to $100. However, there are also some representatives that do not charge any start-up cost i.e., no application fee.
Discount rate: This discount rate is referred in context to the percentage of each sale that the merchant processor keeps to itself and not the discount that represent to the business. To understand it in more detail- when the customer swipes the card or enters the card information in order to buy something, the merchant processor is authorized to take two fees in which first one is the discount rate that could be anywhere from 1% to 5%. Such fees are, however, negotiable. Once your business grows, you get the leverage to negotiate for the reduction in their rates.
Transaction charges: for every authorization of a credit card a business will pay some charges. These are fixed prices that are charge on the business.
End-of-month fees: Such fees look minimal when looked separately, but enormous when considered for the whole moth. Hence, be careful before choosing any provider to do business with.
However, it is advisable to be very specific about your needs before you choose any particular provider to do the business with, as you are going to handle very valuable information. There are various market players, who provides the most powerful and flexible method of merchant account credit card processing, for example charge.com. Last but not the least, go through the references, read fine prints, and sort out your queries, make sure what you’re getting before you start accepting credit cards on your website.