Importance of Online Payment Credit Card for E-commerce Websites
Electronic payment method is used by e-commerce websites to collect payment from customers when they purchase a product or service. Paperless transactions have revolutionized how online businesses operate. It has not only reduced paperwork but also brought down labor costs and transaction costs.
There are different modes of electronic payments such as debit card, Smart Card, EFT (electronic fund transfer), e-money and credit card payment which is considered one of the most common and safest modes of payment. When the card is used by a customer to buy something from the website, the card issuing bank makes the payment on behalf of the customer. A certain period is then provided to the customer to make the payment to the bank and this amount shows in the credit card bill.
It is very easy for e-commerce websites to set up a credit card account. In order to accept payments by credit cards, the merchant can either use their own account or invest in a quality payment gateway account which is mainly a third-party merchant. A gateway is like an online credit card processor that is responsible for handling credit card verification and transfer requests. It establishes an interaction with the card issuing bank for authorizing the credit card in real time when someone makes a purchase through the website.
How does a payment gateway function?
Payment gateway is an e-commerce application service that processes credit card payments for online retailers and e-businesses. It is like a middleman between the company providing the product and the purchaser. This application gets its revenue from the merchant to whom they are providing these services. It has to share the merchant fee with the payment system company and the bank. There are several benefits of investing in a payment gateway; however, make sure you have chosen a reputed application provider.
In case you don’t have a merchant account, your payment gateway provider can help you set one up. Online payment credit card process is quite simple; however, the cards aren’t processed cheap. If you have a start-up, you will have to spend on monthly processing fee and transaction fee for each transaction. Even a start-up fee is charged by many providers.
With the advancement in technology, many online stores have started accepting credit card payments. If you are also planning to have an online store, here is how you can get started. Remember, you will need to set up at least one payment processing option before opening your online store for business. It is also necessary to talk to the web developer before starting the selection process for a payment processing solution. Talking to the web developer is required because he or she will be able to tell you which option will work best for your website.
For an e-commerce website, real-time online credit card processing is done. In this process, the payment information is submitted by the customer and the website processes the payment right away.