Understanding E-commerce Credit Card Processing

E-commerce credit card processing has opened up a new market sector as online retail sales are expected to total $6.3 trillion this year. Merchants within this growth are seeing benefits, but successfully running an online business requires smart decision-making. 

One of those decisions is choosing how to accept credit cards online. Accepting credit cards online successfully is an important aspect of building a robust online business and keeping up with the latest payment trends. Now, there are more options for accepting credit cards online than ever before. Researching for the right payment processor will help you choose one that’s right for you. 

Understanding e-commerce credit card processing 

Get mobile 

As smartphones become smarter and more universal, more customers will shop — and buy — online. 76% of U.S. adults say they shop online using a smartphone, while 69% say they make purchases via computers. 

Accordingly, it’s important for an online merchant’s payment gateway to function on a customer’s mobile phone. The right payment gateway will ensure that you’re able to capture sales from mobile while keeping your customers’ information secure. With the right payment processor, any mobile browser or mobile app can become a secure credit card portal. 

When a payment gateway is optimized for mobile, it allows customers to make credit card payments using their devices securely. This makes it convenient for customers to purchase from anywhere, at any time, increasing the chances of getting those sales. 

Getting mobile is important for e-commerce credit card processing because it allows merchants to offer a convenient payment experience to customers. This increases the likelihood of successful transactions and customer satisfaction.  

Preventing e-commerce fraud 

It’s essential to protect your customers’ personal and financial information, maintain their trust in your business, and avoid costly chargebacks and losses. Here are some tips to help you prevent e-commerce fraud: 

  1. Use a fraud prevention tool: Consider using a fraud prevention tool, such as a fraud detection system or a payment gateway with built-in fraud protection. These tools can analyze transactions and detect fraudulent activity. 
  1. Verify customer information:Collect and verify your customer’s information, such as their name, address, and contact information. You can use address verification services to ensure that the billing and shipping addresses match and ask for additional identification. 
  1. Implement strong password policies: Require your customers to create strong passwords and encourage them to change their passwords regularly. You can also implement two-factor authentication to add an extra layer of security. 
  1. Monitor transactions: Keep a close eye on your transactions and look for any unusual patterns or activities. 
  1. Educate your customers: Give helpful tips on how customers can protect themselves from fraud. For example, they should check their credit card statements regularly and report any suspicious activity. 
  1. Train your employees: Teach your employees how to verify customer information, detect suspicious transactions, and handle chargebacks and disputes. 

New kinds of processors 

There is an increasing number of simplified payment processors available that don’t require a merchant service account or payment gateway. With these processors, the customer enters their card number, and the payment is processed — that’s all.  This streamlined process means there are fewer fees for merchants and more competitive rates.  

Simplified payment processors integrate with your checkout pages, making it so your customers never have to leave your website. This is essential for a seamless and reassuring checkout experience in e-commerce credit card processing. They’re easy to set up and can help you get up and running and accepting payments quickly. Many simplified processors don’t offer the same level of support as traditional processors, as they’re simple enough to not need it. 

Learn about cryptocurrencies 

Another hot topic these days is bitcoin, a digital currency that can be sent from one user to another anywhere in the world. Unlike the U.S. dollar, cryptocurrencies are not backed by any physical tokens. Bitcoin is gaining popularity and is accepted by over 100,000 merchants worldwide. 

There are a few unique advantages to accepting bitcoin through your payment processor:  

  • Transaction fees are much lower than credit cards 
  • Payments process very quickly because there’s no bank acting as a middleman 
  • There’s less security risk because no customer information is attached to bitcoin payments (meaning there’s no risk of chargeback fraud, as there is with traditional credit card payments) 

There are also some unique risks associated with accepting bitcoin:  

  • It’s an unstable currency, and its value fluctuates wildly from day to day. Some economists believe bitcoin’s value is largely due to speculation, and its value has dropped significantly since its rise. 

Many payment processors allow merchants to accept bitcoin as a payment option with just a simple plug-in. If a bitcoin holder doesn’t want to hang onto it, it’s simple to convert it back to their currency of choice.  

How can PAYARC help? 

There are plenty of new payment options to choose from, but one thing hasn’t changed: the importance of asking questions. Be sure to inquire about fees, customer service, and security. The new digital world of credit card payments is here to stay, so choosing a processor that gives you the options your business needs is a must. 

Reach out to us to start your ecommerce credit card processing journey today!