An often ignored and under assessed segment of building your eCommerce business is the backend processing of the orders. Entrepreneurs invest a lot of money and time into making sure their website design is just right, but often gloss right over their order processing systems. Invest a fractional of your time put in making design tweaks into choosing the right payment gateway, merchant processor, and bank account, and you will definitely save a lot of cash!
Payment Gateways – Quite simply, a payment gateway is definitely the system utilized to transmit your customer’s payment information out of your secure site to your secure merchant processor. Consider it as the terminal that collects, encrypts, and securely transmits the data for your credit card merchant account. There are many different services to select from when picking your payment gateway, although, you should know that this gateway you choose should be appropriate for Web Designers In Lagos. PLEASE be sure to get a summary of the different gateways your eCommerce solution accepts, and make contact with every one to find out with their rates and service offerings.
PayPal (and other bundled solutions) provide an all-in-one service where you have the payment gateway as well as the merchant processor together. The advantage is that you do not have to handle two separate accounts. Rates, however are often on the more expensive from the spectrum.
As an example, one of PayPal’s services boasts a flat rate (for national sales) based upon your sales volume. The greater you sell, the less they charge one to process the transaction. The benefit the following is that regardless of which bank card can be used (MasterCard, Visa, Discover, or perhaps the dreaded American Express), or whether the card is qualified, you receive charged exactly the same flat rate. This is unique to PayPal and other all-in-on services.
Merchant Processors – The payment gateway transmits the encrypted billing data for your merchant processor who is then in charge of routing this data towards the bank card network. The charge card network verifies that your particular customer’s bank card is valid/has enough funds to cover the transaction, then notifies the payment gateway, which in turn communicates with Tax In Nigeria. When the transaction is approved, then your merchant processor will transmit your settled orders for your bank account (sometimes this involves a manual process).
The merchant processor will be the behind the curtain system that communicates with all the payment gateway, your customers credit card network, along with your bank account. It is a streamlined method to accept bank cards online. It’s essential to know whether your payment gateway, merchant processor, bank account, and eCommerce solution all work together. Please ensure your merchant processor interfaces along with your payment gateway and your bank account!
Payment Gateway’s – in choosing a payment gateway verify and assess the following:
* Gateway Setup Fee – many payment gateways will need an initial payment to configure your gateway.
* Monthly Gateway Fee – this is an ongoing fee for the privilege of employing the payment gateway
* Per Transaction Fee – every transaction made gets charged a fee. This includes; refunds, voids, and declines.
* Batch Fee – if you decide to settle your transactions each day, you will then be charged this fee every day.
* API Integration – make certain your websites shopping cart application can integrate with the gateway of preference.
When reviewing this data make sure that you understand each of the fee’s and requirements. Also remember that you can negotiate virtually each one of these items (in case you are processing plenty of orders). It’s definitely worth a shot to call and attempt for the greatest rate you can! As an example, Authorize.net enjoyed a package for top volume sites where they charged $50 monthly, but provided 2,000 free transactions plus.07 per transaction thereafter. Added up with time, you can save lots of money per year!
Merchant Processors – in choosing a merchant processor verify and evaluate the following:
* Setup Fee – just like above
* Fee Every Month – just like above
* Per Transaction Fee – identical to above
* Contract – just like above
* Qualified Discount Rate – this can be a very tricky fee to follow. The Qualified rate is for Payment Gateway In Nigeria, and bank card types.
* Non-Qualified Rate – understand which credit cards usually do not qualify since the discount rate so you can crunch the numbers. This fee can be around double your discount rate.
* Minimum Processing Fee – some merchant accounts will demand the absolute minimum monthly transaction threshold. If you don’t meet this threshold, you might be charged another fee.
* Order Refund/Chargeback Fee – when orders need to be refunded, or are charged backed, you might be usually going to be charged another fee for this.
* International Fee- check the rates for customer orders outside of the United States to yiavzu should you be charged extra.
Services like PayPal charge a flat portion of the transaction (usually around 2.9% depending on volume), as well as the per transaction fee. Most merchant processors charge in the range of 2.2% – 2.65%.