After a lot of hard work, you finally launched your business and your e-commerce site. It was not easy. Nobody said it would! As an entrepreneur itself once upon a time, Jeton Company has passed through obstacles and difficulties just like you did. Therefore, we are aware of what you have experienced so far and we appreciate your effort. Now it is time to think about what we can do to develop your business and expand your target market.
As a merchant, naturally, the most important system requirement you need to invest in is management tools for payment processing. In this globalized world with no borders and no hesitation, it is more than crucial to keep up with the up to date technology and provide various online payment systems for your customers. To make it clear for you, we better start with common terminology for online payment tools.
Let’s get in on the ground floor to make it all clear. Basically a transaction includes two sides: A client, in other words a consumer and a merchant. The merchant stands for your role in payment processing. On the other hand, a consumer can be simply described as a buyer who will purchase for your services or products. According to your current online payment system, they will insert their personal and financial details to your website. Since your online shopping site will hold hopefully thousands of client information, you are under the obligation to keep their data safe and private. We are sure you have heard many fraudulent incidents where customer data was stolen. Such a loss of trust can be irreversible and finally devastating for many establishments.
Therefore, it is crucial to shape a reliable and secure merchant account. What is a merchant account exactly? This is a bank account type which enables businesses to process payments in multiple ways. The other crucial term is ‘’Payment Processor’’ meaning paths for merchants to operate transactions from various channels such as e-wallets, credit cards and debit cards.
Other two security methods are payment gateways and VPN (Virtual Private Network). A payment gateway is a process of authorization where consumers must input required information to conclude the payment process successfully whereas VPN stands for data encryption against any kind of malicious payments and unauthorized attempts.
The Terminology For Payment Processing
In order to have an accomplished selection of payments processor, you must know the customer habits in your target market. The most common payment methods you may like to place on your e-commerce sites are:
Wire Transfer Payment Processing: A wire transfer is a method of electronic funds transfer from one person or entity to another using a network such as the SWIFT (Society for Worldwide Interbank Financial Telecommunication) or Fedwire. They can be done domestically and internationally. Although they are super quick and safe, they can cost pricey fees and costs for sender and receiver.
Debit Cards and Credit Cards: This is one of the most applied payment processings in the industry due to the low fees, high security and convention. Once the bank approves the payment, the amount will be sent to your merchant account.
ACH (Automated Clearing House) Payment: Being an electronic bank-to-bank payment option, ACH transfer is pretty common in the United States. The reasons to choose ACH for your business are low cost, high retention and openness for everyone. Basically, anyone with a US bank account can pay via the ACH mechanism. However, unlike bank wire transfers, they can take several days to settle.
E-wallet Payment Processing: Users of E-wallets are rapidly rising. The biggest reason for this is the wide usability of digital wallets. Once you create an account in a reliable E-wallet company such as Jeton, you do not need to write your bank account details every time and it is easy peasy to check your transaction history on your application. Plus, an E-wallet service is double secure compared to other payment processing options above.
What exactly happens in payment processing?
Stages can be basically categorized under the titles of Authorisation, Sale and Settlement.
Authorisation: When the client inputs their payment information (e.g. PayPal or credit card details), the payment gateway sends that information to the payment processing company and the company checks the customer’s bank to confirm if they have sufficient sources to make the purchase.
Sale: After the confirmation, the money is taken from the customer’s bank account and kept by the merchant’s payment processing company. Then, the subject payment gateway approves the sale to both the merchant and the clients.
Settlement: At the predetermined time everyday, the payment processing company sends the amount from all the merchant’s sales to their merchant accounts.
Now you are more familiar with how an online payment system works and you can choose the best option for your target market. Choosing the best payment option meeting your needs is not easy! However, there are various criterias such as fees, security, transparency, quickness and usability you can consider to make your mind up.
Jeton payment processing is a great alternative for those who are open to innovation and functionality for their businesses. We provide mutually beneficial payment solutions for merchants and individuals. With the help of our professional crew and our remarkable experience in the sector, Jeton is ready to assist you to reach large crowds and expand your business day by day.