E-commerce has changed the big picture in the global economy. Due to the improvement and technological developments today we can buy whatever we want just with a simple click from our smartphones or computers. It is possible to order a japanese matcha tea from the local producer. These excellent opportunities also made room for a lot of businesses to step into global markets and grow. Many individuals took initiatives and started their own business whether it is a sale of local products or dropshipping from overseas countries such as China or India, and many businesses made a lot of profits from e-commerce.Some existing businesses also started to digitalisation and stepped into the e-commerce world. However this global connectivity came with a cost. A lot of complex procedures have arisen from handling and shipping to payment operations. If you have an e-commerce business you can relate the challenges that we are talking about.
After all those exhausting days, brainstorming, financial issues, heavy regulations, concerns and calculations, you are finally here. No matter if you are exporting cold-press olive oil or selling tractor plough, the path you have come through was full of obstacles. As entrepreneurs once, we can put ourselves in your shoes and understand what you feel exactly.
You may think that all difficulties have passed and smooth days are waiting for you. But, to be honest, it has just started! Frankly, there is no “done” in expanding your company and there will not be. You will need to renovate your ecommerce site frequently and keep up with the latest trends. Considering the non-stop innovations for the business sector, the only way to stand in this competitive environment is to serve the best and most updated service.
Obviously, no matter how superb products you present or how smooth your product placement layout is, if your ecommerce payment solutions are inadequate, you can not provide a functional business with conventional marketing systems. payment methods and check out page design will carry your website to the next level. But how to improve ecommerce payment processing and what are the most popular ecommerce payment processing options today?
Understanding the whole concept of how ecommerce payment processing works is an essential part of establishing an online business. OK! We all know that the terms are quite confusing and unless you are a financial wizard or familiar with technology, you might think the ecommerce payment processing is chaotic and hard to navigate. Here we are explaining to you the fundamentals of ecommerce payment processing to guide you through.
What is e-commerce?
E-commerce is the abbreviation for electronic commerce which means buying and selling of goods and services digitally. There are various types of transactions included in e-commerce such as online shopping or electronic payments.
How Payment Processing for Ecommerce Websites Works
Today in order to facilitate complex international transactions, many online payment providers offer new solutions and tools to merchants from all over the world.
Before going deeper, there are three terms we need to know:
– Merchant Account: This account enables merchants to accept online payments from their clients. Once the transactions have been authorized, the amounts from clients’ accounts are transferred into this account. A merchant’s business banking account will usually have this purchase amount within 1-2 days.
– Payment Gateway: A payment gateway can be simply defined as a process of authorization where clients must input required information to conclude the payment process successfully. In other words, it is a medium that transfers the data between the ecommerce website and the payment processor.
– Payment Processor: This term refers to a financial institution opening paths for merchants to operate transactions from multitude channels such as debit cards, credit cards and e-wallets. These intermediaries administrate the transaction information between the main pillars including a merchant account, an issuing bank and an acquiring bank.
– Security and Fraud prevention: E-commerce payment process involves sensitive data treatment. This data should be protected and must be inaccessible without authorization. When payment volume rises also the risk rises. Fraud dedication is a must. Payment processors typically implement security measures, such as encryption and tokenisation, to protect payment data and prevent fraudulent transactions.
These components are generally interconnected. Depending on your business needs, you can choose to combine these different components. You can choose to work with a payment processor that provides all components or if you have an inbuilt system you can integrate your tool with the offered services.
Main e-commerce payment methods
Credit and debit cards
Without a doubt the most popular and valid payment method is credit or debit cards all around the world. When customers buy from online stores, a processor contacts the issuer (such as Visa, Mastercard, or American Express) for authorization. The funds are transferred to your bank account when approved. However credit and debit cards are the most targeted tools by cybercriminals. Nowadays these methods require higher security measures. It is important to check the security layers of your payment provider.
Mobile payments
Smartphones have become an irreplaceable part of our lives. We use mobile payments not online in physical shops. Mobile payments are the second most popular method around the world. Today more than half of all ecommerce transactions happen using a mobile device. Online shopping is one of the most popular areas where mobile payments are used. Popular mobile payment methods such as Apple Pay, Google Pay, and similar payments make it easier for mobile shoppers to buy online.
Buy now, pay later (BNPL)
Some individuals don’t prefer to pay for products in full upfront. BNPL services split the cost into different transactions and automatically bill a customer when their next payment is due. You don’t need to have a credit card to use this type of service. Most of them are interest free. You don’t need to pay any account fees either. These Payments offers Installments—a way for customers to break their purchase down into smaller payments. You still receive the total order amount upfront. Most of them don’t have any fee or a small fee. We recommend you to read T&S carefully before using these methods.
Bank transfer
Another common method is bank transfer. With this payment method, a customer signs into their online banking app and manually sends money to an ecommerce business. Some e-commerce businesses share their bank account information and customers send money directly to their bank account. Especially for international transactions this method may charge additional fees.
Choose your side E-commerce Payment processes or Traditional payment Processes?
Everybody has purchased at least one item online. We all know how this process works more or less. You put your item in the shopping cart then go to the checkout and click the pay button. Traditional payment processing is connected to third party payment gates. Due to this reason you are redirected to a separate page to complete the payment. However sharing all your personal information with a third party might be questionable.
If you are on an e-commerce site where an integrated payment process is offered, you can just click and share your payment details directly with the merchant that you buy from. This scenario sounds more reliable and faster. From a merchant point of view, offering e-commerce integrated solutions to your customers will enhance your relationship with them.
Today merchants may offer direct payments to their customers on their website including credit cards, debit cards, mobile payments, bank transfers and buy now pay later. These options definitely will increase over time.
What to look for when choosing the best Ecommerce payment platform for your business?
Before adopting a payment solution to your business, there are important things that you need to be aware of. Security is a must. Both for your business and your customers safety in the digital world definitely will enhance your business. Carefully check all the security features provided by the payment gateway. It is essential that you evaluate the accepted payment methods in your target market. If the payment processors are not offering the local payment methods that you are looking for then it might not be a good option to work with them.
Analyzing costs and fees will give you a clear picture of your expenses. Generally payment providers will charge you set up fees or monthly subscription fees. Also generally providers charge you a small % per transaction. To avoid additional fees or hidden costs will save you time and money. If you offer crypto payment options to your customers, it is essential to check if the payment provider provides blockchain services.
If you have a loyal customer base, for recurring payments you will need tokenization services. Instead of saving your customers financial details, some payment gateways will generate tokens to save client data within your system. From then on, your platform uses the token instead of card numbers when charging customers.
The Best Payment Processor for Ecommerce
Whilst payment processors play such a tremendous role in the process, it is wiser to choose a functional, seamless and trustworthy payment processor for your ecommerce site like Jeton online payment. With our high-experience in the online payment industry and our seamless customer support, Jeton Company is surely ahead compared to its opponents. There are some questions which may assist you in this challenging continuum and have already guided us through the stages to build up hassle-free Jeton payment processing for businesses.
It is essential to have a strategic plan for the market that you operate in. In order to create a map for your payment proceedings it is important to define business priorities. If you don’t know where to start we can guide you with a couple of simple steps. Start to research popular payment methods in your target market. Then consult your payment provider if they are able to provide you with the integration of local payment methods that you want to offer to your customers.
To start with you can also ask yourself these basic questions:
What is the best payment processor for my target market?
Make a market research and check available payment methods in your target market.
Is this payment processor reliable for my business and my clients?
Read online reviews and opinions about the payment processor. You can have an insight from other users’ experiences.
Which country is my target market located in?
Check with the payment processor if they are operating in your target country. Some processors are operating globally however they might be having issues in your target market.
Is this payment processor smooth and useful for my business?
We recommend you to test the payment method before you adopt it to your business. Simply go to another website where they operate and make an online purchase or payment to see if the operations are smooth and useful. It is important to put yourself in the shoes of your clients.
Once you have your answers regarding your payment processor, then you are one step closer to find the best fit for your business.
Jeton is a splendid example of how a payment processor is supposed to be! Providing tailor-made solutions for every single ecommerce business and creating a totally secure zone for both owners and consumers, Jeton has become one of the most preferred payment processors recently. With a user friendly interface and high security measures for both merchants and their customers, Jeton aims to meet all your needs as an innovative payment solution provider.
Jeton offers fast integration and an easy to navigate innovative platform. Our set up fees are highly competitive. Moreover, we are available in more than 100 countries through 70+ payment methods around the globe. You will find the right local payment solutions within our large portfolio for your business. Join Jeton today and go beyond your dreams with us! We will walk you through all the steps towards your success. If you have any more questions you can visit our blog or reach out to our customer support via the Live chat section on our website.
