An often neglected and under analyzed segment of building your eCommerce organization is the backend processing of your orders. Entrepreneurs invest lots of money and time into making sure their internet 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 selecting the right payment gateway, merchant processor, and bank account, and you will definitely save yourself a lot of cash!
Payment Gateways – Put simply, a payment gateway will be the system employed to transmit your customer’s payment information from your secure website to your secure merchant processor. Consider it as the terminal that collects, encrypts, and securely transmits the information for your merchant account. There are many different services to select from when choosing your payment gateway, although, it is important to know that the gateway you decide on has to be suitable for Website Designers In Lagos. PLEASE be sure to get a summary of the various gateways your eCommerce solution accepts, and make contact with each one of these to find out with their rates and service offerings.
PayPal (and other bundled solutions) provide an all-in-one service in which you obtain the payment gateway as well as the merchant processor together. The advantage the following is that you do not have to control two separate accounts. Rates, however are generally on the high end in the spectrum.
For example, certainly one of PayPal’s services has a flat rate (for national sales) based upon the sales volume. The greater you sell, the less they charge you to process the transaction. The benefit the following is that regardless of which charge card is utilized (MasterCard, Visa, Discover, or perhaps the dreaded American Express), or whether the card is qualified, you get 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 in your merchant processor who is then accountable for routing this data towards the bank card network. The credit card network verifies that the customer’s credit card applies/has enough funds to pay for the transaction, then notifies the payment gateway, which in turn communicates with Tax In Nigeria. If the transaction is approved, then your merchant processor will transmit your settled orders in your bank account (sometimes this requires a manual process).
The merchant processor is the behind the curtain system that communicates with all the payment gateway, your prospects bank card network, and your bank account. This is a streamlined approach to accept bank cards online. It’s vital that you know whether your payment gateway, merchant processor, bank account, and eCommerce solution all work together. Please make certain your merchant processor interfaces along with your payment gateway and your bank account!
Payment Gateway’s – when choosing a payment gateway verify and assess the following:
* Gateway Setup Fee – many payment gateways will require an initial payment to configure your gateway.
* Monthly Gateway Fee – this is an ongoing fee for that privilege of utilizing the payment gateway
* Per Transaction Fee – every transaction made gets charged a fee. This includes; refunds, voids, and declines.
* Batch Fee – if you choose to settle increase your transactions each day, you will then be charged this fee every day.
* 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 of the fee’s and requirements. Also remember that you can negotiate virtually each one of these items (if you are processing plenty of orders). It’s definitely worth a shot to call and check out to get the best rate you can! For example, Authorize.net experienced a package for top volume sites where they charged $50 a month, but provided 2,000 free transactions plus.07 per transaction thereafter. Added up as time passes, you can save 1000s of dollars each year!
Merchant Processors – in choosing a merchant processor verify and review the following:
* Setup Fee – just like above
* Monthly Fee – identical to above
* Per Transaction Fee – identical to above
* Contract – same as above
* Qualified Discount Rate – it is a very tricky fee to monitor. The Qualified rates are for Best Payment Gateway In Nigeria, and credit card types.
* Non-Qualified Rate – understand which charge cards tend not to qualify as 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 require the absolute minimum monthly transaction threshold. Should you don’t meet this threshold, you are charged another fee.
* Order Refund/Chargeback Fee – when orders must be refunded, or are charged backed, you are usually going to be charged another fee for this particular.
* International Fee- check the rates for customer orders outside of the us to yiavzu in case you are charged extra.
Services like PayPal charge a flat amount of the transaction (usually around 2.9% according to volume), as well as the per transaction fee. Most merchant processors charge inside the range of 2.2% – 2.65%.