Business owners of small businesses are more likely to accept in-store and hard cash payments. There isn’t anything bad in it. However, nowadays, people prefer making payments with credit/debit cards mostly. So, you might be missing out on a fair range of customers and profits if you are not opting for online payment processing services. You might ask yourself, why do I need online payment processing solutions for my business? It will help you widen your audience and expand your business more than traditional payment does. If you are looking for processors, you need to know a few things about them first. Let’s see what those are.
1. You Need a Merchant Account
To get your online payment to work, you need to register a merchant account first. A merchant account allows a business to accept payments using credit/debit cards or e-wallets. When your customer pays by card or the e-wallet, the card details are sent to your merchant account. The acquiring bank that holds your business’ merchant account sends transaction messages to the card issuer. A card issuer is a company that is giving you credit/debit card services, for instance, MasterCard, Visa, etc. The issuer then forwards the information to the customer’s bank to check on the funds. If your customer’s card has enough money, the money will be deducted, and their bank will send a “transaction complete” message.
2. There Are More Than One Ways of Online Payments
You can utilize the system and offer online payments in three ways, payment gateways, pay by link, and virtual terminal. A payment gateway is the most well-established payment system out of three. Your customers make online payments through your website using a payment gateway. Think about ecommerce websites, online shopping websites, etc. Pay by link involves creating an invoice and sending it via email to your customer with a link. When your customer clicks the link, they are taken to the payment page. This is suitable for businesses that don’t need a website or an online shop but still accept online transactions. Virtual terminal lets you enter your customer’s card details online. You need to have a secured page in order to do so. While your customer in on the line, you fill-up the card info they provide.
3. They’re Super Safe
Online payments are used by customers as well as companies and businesses because they are safe to use. Online payments protect both your and your customer’s details when making online purchases. The security systems used will vary from company to company. Some businesses use 3D technology where a customer is asked for their security password before a payment is issued using pay by link or gateway solutions. Others might use virtual terminals with high-security checks to ensure the payment is taking place from a valid source. The SSL certified payment gateways are necessary as it protects both the client and the company’s details.
4. Customers Like Online Payment Methods
An annoying thing for most of us when we pay the bill using cash is the spare change. This can be irksome and time-consuming to gather the change. By online payment, a customer can easily pay off the amount without roaming around for a change. A credit/debit card is safer and more convenient to use. You can store an immense amount of money on the card without bulking your wallet with paper money. This increases the risk of robbery and theft. Using a card or e-wallet, the criminal won’t be able to access your money so easily.
Now you know why using online payment services is necessary for even a small business. Using online payment services is vital if you want to expand your business to online paying customers.