Credit card processing online has become more valuable to businesses large and small. It simplifies and speeds up the process of ordering. For instance, takeout ordering apps have greatly benefited customers and restaurants. The process is now very easy and streamlined. Anything too complicated and a business risks losing a sale. Customers can get frustrated easily and will move on to another site in a matter of seconds; they have little patience.
Customer Benefits of Credit Card Processing Online
- Customers can easily make purchases;
- Customers don’t get frustrated having to call back if the line is busy;
- Customers don’t get annoyed being put on hold during busy periods;
- Customers save time ordering and having items delivered directly to them; and
- If the customer chooses delivery, the driver saves time and doesn’t need to process a credit card or worry about having to carry change if the customer only has large bills.
Benefits of Credit Card Processing Online for Businesses
- Frees up staff from having to answer the phone when busy with store customers;
- Less chance of staff making an error taking the order over the phone;
- Reduces the risk of a line building up at the counter since customers can now order and pay online;
- Delivery people don’t need to carry cash to make change or process a credit card; and
- Allows the business to reach a wider customer base (country wide or even international) and increase gross revenues.
Credit Card Processing Online requires a “Gateway”
Credit card processing companies had to use something called a “gateway” to accept payment for online purchases. Until recently, there were only a few gateways. We work with several processors that have developed their own secure gateways so it brings down the cost tremendously of using a third party gateway and the per transaction charges that they impose in their pricing structure. We can also help with integration and setup if the business needs assistance setting up the gateway.
What is a Gateway?
A “gateway” is an e-commerce application service provider that is able to authorize credit card payments over the internet and basically act as the online gateway to the credit card processor. The gateway passes the encrypted payment information of a particular transaction on through to the credit card processing company.
Authorize.net was one of the first gateways to be used by businesses in 1996, and still commands a large percentage of the market share for online gateways.
PayPal is another option businesses use for accepting credit card payments on the internet. PayPal is itself a gateway and a processor, although it can be quite expensive for smaller ticket items. In addition to the 2.9% PayPal charges a business, it also carries a $.30 per transaction fee. Example: On a $15.00 item the PayPal fees would be 4.9%. Considering all the other overhead and costs small businesses today face, having to give up 4.9% for just processing costs is quite expensive.
Small business owners do pay more when they sell something online, because in addition to the processing costs they have to pay either as a bricks and mortar store or as an online only store, they still have to pay the gateway fees. It is not all bad news however, because a business is reducing overhead costs and saving time when they provide credit card processing online to their customers and can even increase sales to a larger customer base.
Three-Pronged Approach to Accepting Credit Card Payments Online
We have advised many businesses on gateway solutions and we take a three-pronged approach. First, we look at security and make sure it is a secure solution with point-to-point-encryption and tokenization as necessary. Second, we want to make as few technology changes as possible to their current system, because nobody likes to change technology, especially if it is working fine and having to train employees could become an issue. Third, we offer the business competitive pricing for credit card processing.
Merchants using First Data for their online credit card processing can use the Payeezy gateway. It is simple to set up a payments page for a variety of products or services. It can be used by restaurants, dry cleaners, healthcare professionals, online retail stores, software companies or for services like plumbing, electrical carpentry or landscaping. The actual credit card processing takes place on First Data’s servers so the data is encrypted and meets PCI compliance guidelines, so security is not an issue.
Use a Compatible Shopping Cart When Setting up Your Credit Card Processing Online
There are many different shopping carts so make sure yours will integrate with the gateway you are using. There are a number of factors you should consider and red flags to be aware of when looking at shopping carts to handle online payments for your business. These red flags include: gateways that are difficult to integrate; gateways that have limited use and were not meant to work with shopping carts; gateways that work with a limited number of shopping carts; and gateways that will cost you too much based on the fee your web developer is quoting.
Avoid gateways that are not directly integrated with your processor
Takeout Rocket offers credit card processing online for restaurants because we know there are HUGE BENEFITS to both the business and customer, as mentioned above. We provide a very easy system for customers to place their orders and pay online. The result is quality service and tremendous savings to businesses small and large.
Credit Card Processing Online for Businesses is Not Complicated
If you are confused by credit card processing online for your business, there are a few things you can do to avoid the confusion. It doesn’t have to be complicated, so be wary of sales agents or bankers that make it confusing or are not able to explain things in a simple manner. They should be able to give you a straight forward quote that is easy to understand. Always ask for the proposal in writing and feel free to call us if something doesn’t seem right and you want a second opinion. We are glad to help and save you money.