What you need to know about accepting online payments
Today more and more consumers are doing their shopping online. Online sales have increased in large part due to the ease of being able to shop from the comfort and privacy of the home or office which appeals to more consumers then ever before. Studies show that the rate of online sales continues to substantially increase from year to year. This has led many different types of businesses to begin accepting online payments through their website. While there are more advantages then disadvantages for setting up online payments you should learn all you can about it.Before simply setting up a website and beginning to accept online payments there are certain factors that you should be aware of. Here is what you need to know about accepting online payments-
- Know how it works-In order accept online payments or credit card payment you will have to have an account with an internet merchant that has an acquiring institution. The institution will be the one that authorizes any purchases that are made. This is especially important when the payment is being made with a credit card since there are many fraudulent credit card purchases. The institution will also make sure that the funds are deposited into your account. You will most likely have to have an account (under your business' name), with the bank that will be handling this. It is important to know that you can set up online payments in a various number of ways. You will need to explore what your options are and determine which one will work best for your business and your customers.
- Know what it costs-It is important to understand that there will be costs with taking online payments. The cost of taking online payments will vary with how you decide to set it up. If you have a website then it may only entail adding a page or two to your website for your online store. If you don't have a website then you will need to set one up. The price for this can range from anywhere from free to several hundreds of dollars depending on the type of website and the hosting service that you use. There could also be a setup fee along with a month to month charge from the online payment service. You will need to shop around and determine where you can get the best deal. Keep in mind that certain online payment services will waive or reduce their setup fees. Finally, it is important to know that all online payment services will charge a small fee for every transaction. This is usually pennies on the dollar but you should still shop around for the best deal for this, as well.
- Know what the benefits are-One of the major benefits is the amount of convenience that it provides both the customer and the business that is selling. When an online payment is processed the amount of the payment is automatically verified and then transferred into your account. The customers who choose to shop this way like the speed of being able to enter their information and have their purchase automatically approved. Most businesses report a substantial increase in sales once they open their website for payment. Your customers are far more likely to choose to shop with you rather then your competition when you are able to offer online payment options. Finally, many businesses report an increase in productivity since their employees can fill orders faster and use their extra time to take care of other job duties. This can be especially beneficial for a business that is smaller and has few employees and limited resources.