An often overlooked and under analyzed segment of building your eCommerce organization is the backend processing of your orders. Entrepreneurs invest a lot of money and time into ensuring their site 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 may save a lot of cash!
Payment Gateways – Put simply, a payment gateway is the system used 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 in your processing account. There are many different services to select from when choosing your payment gateway, although, you should know the gateway you choose has to be appropriate for Website Designers In Lagos. PLEASE make sure to get a summary of the different gateways your eCommerce solution accepts, and contact each one to find out of the rates and repair offerings.
PayPal (and other bundled solutions) provide an all-in-one service in which you have the payment gateway and the merchant processor together. The benefit 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, among PayPal’s services boasts a flat rate (for national sales) based upon your profits volume. The greater you sell, the less they charge one to process the transaction. The main benefit the following is that irrespective of which bank card can be used (MasterCard, Visa, Discover, or even the dreaded American Express), or whether the card is qualified, you get charged the identical flat rate. This can be unique to PayPal along with other all-in-on services.
Merchant Processors – The payment gateway transmits the encrypted billing data to your merchant processor who may be then responsible for routing this data for the bank card network. The charge card network verifies that your customer’s bank card is valid/has enough funds to protect 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 requires a manual process).
The merchant processor is definitely the behind the curtain system that communicates using the payment gateway, your prospects charge card network, as well as your bank account. This can be a streamlined way to accept credit 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 with your payment gateway along with your bank account!
Payment Gateway’s – when choosing a payment gateway verify and review the following:
* Gateway Setup Fee – many payment gateways will need a preliminary payment to configure your gateway.
* Monthly Gateway Fee – this is an ongoing fee for that privilege of using the payment gateway
* Per Transaction Fee – every transaction made gets charged a fee. This also includes; refunds, voids, and declines.
* Batch Fee – if you choose to settle your transactions each day, you will then be charged this fee on a regular basis.
* API Integration – ensure your websites shopping cart application can integrate with the gateway associated with preference.
When reviewing this data make sure that you understand all the fee’s and requirements. Also remember that you can negotiate virtually each one of these items (should you be processing lots of orders). It’s worth a shot to call and attempt to get the best rate you can! As an example, Authorize.net had a package for high volume sites where they charged $50 per month, but provided 2,000 free transactions plus.07 per transaction thereafter. Added up over time, you can save lots of money annually!
Merchant Processors – when selecting a merchant processor verify and assess the following:
* Setup Fee – identical to above
* Fee Every Month – same as above
* Per Transaction Fee – same as above
* Contract – same as above
* Qualified Discount Rate – this is a very tricky fee to monitor. The Qualified rates are for Best Payment Gateway In Nigeria, and bank card types.
* Non-Qualified Rate – understand which bank cards do not qualify since the discount rate which means you can crunch the numbers. This fee can be just as much as double your discount rate.
* Minimum Processing Fee – some merchant accounts will demand a 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 gonna 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% according to volume), plus the per transaction fee. Most merchant processors charge in the range of 2.2% – 2.65%.