The payment system is part and parcel of an ecommerce store and online stores are becoming popular nowadays. In fact, based on statistics, there were an increasing number of retail stores that were established online. This sudden increase in the number of online retail stores is due to the benefits that online stores can give to their customers.
An online store can offer convenience to customers, allowing them to shop in the comfort of their homes. They can shop anytime of the day, at their own pace. Even at night, they can visit different stores. Aside from convenience, they can also save you time and the hassle of walking around just to find a single item.
However, as an e-commerce entrepreneur, you need to consider the different methods of payment system options available for your customers. As a business owner, you need to understand that choosing the right payment system partner is very crucial for your business.
The Merchant Account
For all online stores, an online payment system must be established. Nowadays, one of the widely used payment processors is PayPal. It can be considered as the easiest method of receiving payments. As long as you have a valid e-email address along with your valid credit and debit card, you can make a transaction with PayPal. With PayPal, you are required to pay a higher transaction fee compared to the traditional merchant cost.
Setting up a merchant account is much more complicated compared to setting up a PayPal account. However, considering its long-term benefits, the merchant account will allow you to save more on the entire transaction cost. A merchant account is indeed a wise choice if you want to save a lot and maximize your profit.
E-commerce payment systems available for online stores include Google Checkout, WorldPay, SagePay, NetBanx, and SecureTrading. They are all well-known and thus, you can pick the right vendor that works best for you.
The Gateway Payment
A payment gateway is effective when you are using a debit card or credit card payment system. It is the most efficient and effective way to process the transaction since all payments will be directed to your business’ account. Thus, external platform, such as PayPal, is no longer needed – much more efficient compared to other means and much more customer friendly.
In most cases, banks are offering separate payment gateway for their clients with merchant accounts. You can also ask assistance from your bank in setting up the payment gateway.
Integrated Payment System
It is very common today for business owners to set up an online store and a physical store to increase profit. Thus, your customers will either visit your online store or physical store. In this case, you need to make sure that you have the integrated payment system in order for your customers to be able to pay conveniently and transact either online or in a brick and mortar store. In order to have an effective integrated payment system, you need to coordinate and ask for the assistance of your bank.
Here is the summary that would help you consider and pick the best payment system that is perfect for your online, small or large, business:
- For online and physical stores, have an integrated payment system set-up.
- Online payments such as Paypal offers convenience but then, consider the transaction costs.
- It is better that you set-up a Merchant Account to reduce cost and protect yourself from fraud.
When you run an online store, you must set up the best payment system that fits your business needs. Not only will you have an efficient store process, but you will also provide convenience and security for your customer’s online shopping experience.