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Saturday, November 27 2021

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eCommerce Payment Processing: Here’s What a Small Business Owner Should Know

Ecommerce

Selecting the right eCommerce payment gateway for your business and the features you choose to offer customers online can be fundamental to your sales performance and there are other aspects of the process that are just as important.

If you run a small business here is what you should know about eCommerce payment processing.

Understanding the three key elements

Once you have decided to take your small business online and you want to be able to sell to a wider geographical audience the solution is there in the form of an eCommerce payment gateway.

It helps to understand that there are three main components of eCommerce payment processing that will be supporting and enhancing your online store.

What you need to know is that the payment gateway acts as the vital connection between your website, which is where the customer is asked to enter the payment details and shipping information, and the payment processor you have partnered up with.

What your payment processor does is gather the information provided from that gateway and perform a series of verification checks on your behalf to confirm that the details are correct and the customer has funds in their account to pay for the purchase.

Once the transaction is complete they will deposit the money into your merchant account and the transaction is complete.

You will find that some merchant service providers will offer to manage the end-to-end process in its entirety, which means they handle the technical aspect of setting up the connections right through to depositing funds.

What is the payment gateway for?

You have a number of options when you create a payment gateway on your site. The main role of the service is to offer a simple gateway that makes it easy to gather the customer’s payment information in a secure way and connect with the financial institution responsible for collecting the money.

If you choose what is commonly described as a hosted widget, you will be using an embedded checkout page that you are not able to customize in terms of the look and feel of the page contents.

Using a hosted field is a popular way of creating an additional layer of security, (which always helps reassure customers) so that their credit card information has much less chance of being compromised.

Talk to your chosen payment provider such as Razorpay about your options so that you find the right solution that meets your needs and will allow you to process payments as smoothly as possible.

What to look for in a payment processor

There are a couple of critical points that you need to cover when choosing a payment provider.

Make sure they are PCI compliant, which is the payment card industry standard.

Check that they are able to offer the payment methods that you know your customers will want to use.

Clarify the fee structure that they charge to process each transaction so that you know what the costs are for using the service.

Confirm if they create tokens for sensitive payment data. Tokenization is a security measure that allows you to protect yourself and your customers from hackers.

Now you know a bit more about eCommerce payment processing you should be able to make an informed choice and get the right service and options that help to enhance your small business credentials.

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