How to Choose the Right Payment Processing for your e-Commerce Business

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How to Choose the Right Payment Processing for your e-Commerce Business

Ecommerce is one of the fastest growing businesses around the globe. In 2017, the industry accounted for $2.3 trillion in sales, and this number is expected to almost double by 2021! To remain competitive, your growing ecommerce business will need to process credit cards as an online payment. In fact, it’s clear that without an ecommerce credit card processor, you’re losing money—and lots of it.

A credit card is one of the most popular payment methods for virtual shopping. Processing these types of payment is crucial to success for an ecommerce store. You need the right payment processing to excel in today’s hyper-competitive economy.

So, just how do shop owners choose the right ecommerce payment processing platform? Believe it or not, the first obstacle you may encounter is the high risk associated with this industry. Let’s take a look at what this high risk entails so that you can build profits while keeping your customers’ information safe.

How Does eCommerce Payment Processing Work?

Ecommerce payment processing, at its most basic level, allows an online store to get credit card payments.

A customer’s credit card information is sent through a payment gateway to the payment processor who then notifies the card-issuing bank. The truth is that there are many pieces, like a jigsaw puzzle, that need to work in harmony in order to build a successful platform.

A payment gateway is software that links the card processing network to your website’s shopping cart. This is essential to accept payments online. In essence, a payment gateway is like a virtual terminal and can be compared to the physical terminals used at brick-and-mortar stores. A hosted payment gateway sends your customer to a different website to enter their payment details.

A payment processor, or merchant services, is the go-between from a merchant, their bank, and the customer’s card numbers and card transactions, and their bank. If funds are available, the transaction is approved.

Merchant accounts are a specific type of bank account that act as the middle man between the bank that is linked to the credit card, and the business. Merchant accounts for ecommerce accept the funds after the transaction has been authorized and settled. The money is then transferred to the company’s bank account in approximately one to two days.

You many be surprised to discover that not every store located on the World Wide Web accepts credit card payments. There are a lot of fears surrounding this: some fear that their bottom line will be affected by the extra rate charges and transaction fees, while others they have been denied a merchant account.

Either way, it’s clear that not accepting these payment methods is detrimental to their profits and perceived services. Customer surveys have shown that over 80 percent believe it’s important to get the option to pay with a credit card, and 35 percent will choose a different business that does accept such payments.

PayPal is another payment option that a growing number of consumers are looking for. This platform uses its own gateway and allows payments for subscriptions. Many companies also use PayPal for invoicing and estimates. While PayPal is an important payment service for a virtual business, you should still offer both credit and/or debit card checkout options.

Why is eCommerce Credit Card Processing Considered High Risk?

Ecommerce businesses are often considered high risk when it comes to credit card processing. Why? The inability to accept a payment in person leads to an increase in fraud. In fact, in 2017, 92 percent of fraudulent online transactions involved a credit card.

Point-of-sale, or in-person fraud is much less likely to occur. When a card is not present, as with ecommerce credit card processing, there is more than an 80 percent increase in the chances of fraud occurring. Part of the reason for this is due to EMV technology.

Today, the majority of credit and debit cards now have EMV chips. These chips generate a unique one-time code each time they are used, making it nearly impossible to duplicate. Of course, without a physical card present, as in online sales, it is impossible to use an EMV card reader.

A subscription service requiring recurring payments can also raise a red flag and increase the risk per payment processing services. A payment processor may reject an application for many reasons, including the type of company, the high volume, or even the check averages.

For this reason, many low-risk  merchant service providers decline applications from business owners in the ecommerce sector.

How Do You Choose a High Risk Payment Processor?

Many ecommerce businesses turn to high risk payment processors in order to obtain credit card payment options for their customers. Here’s what to look for when searching for your best options:

  • Do they offer secure detection systems and a payment gateway that provides secure payment solutions? With the growing concern for fraud, it’s important your customers know that you are doing all you can to make the information they share with you, including their credit card accounts and online payments, private and inaccessible. If you are accepting these types of payments, you must also be PCI compliant. Make sure this feature is included with your merchant accounts.
  • Is the ecommerce credit card processor compatible with your cart and does it provide a seamless experience for your customers? Is the process to gateway a payment easy and simple?
  • Are the rates and fees associated with the merchant account outrageously expensive? Some high-risk payment processors take advantage of those that are unable to obtain low-risk credit card processing for ecommerce.
  • Is online credit card processing available from any device?

Why is High Risk Pay the Choice for eCommerce Businesses?

High Risk Pay uses secure detection systems to stop theft. All transactions are SSL-encrypted, so our payment gateway protects everything from customer information to login credentials. Our merchant account lets you remain compliant with existing Payment Card Industry Data Security Standard regulations.

Today’s customers look for a seamless internet experience that makes successful purchases a breeze.

If the process is unclear, or they have doubts when they get to the payment transactions, many will simply leave their purchases in the cart. This is known as cart abandonment, and the average rate is just under 70 percent. That means that per every 10 online shoppers, 7 will not complete their transaction.

At High Risk Pay, we have a services support team that is available to ensure that your account is problem-free, allowing your customer to check out with no issues that stop them in their tracks.

In addition, our payment gateways are easy-to-use and compatible with most major shopping carts. As an account processor, we work to ensure most every payment form is accepted, including a streamlined mobile payment option.

Once you have a merchant account, you’ll enjoy security and fast online payments. Get started accepting credit cards today for a more successful tomorrow.

We Can Get You Approved!

Having trouble getting approved for your high risk merchant account? Did you know HighRiskPay approves 99% of all applicants!