An often disregarded and under analyzed segment of building your eCommerce business is the backend processing of the orders. Entrepreneurs invest lots 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 the time spent in making design tweaks into picking out the right payment gateway, merchant processor, and bank account, and you may save a lot of money!
Payment Gateways – Basically, a payment gateway is the system used to transmit your customer’s payment information out of your secure website to your secure merchant processor. Think of it as the terminal that collects, encrypts, and securely transmits the information in your merchant account. There are many different services to choose from when choosing your payment gateway, although, it is important to know the gateway you decide on has to be appropriate for Website Designers In Lagos. PLEASE make sure to get a listing of the different gateways your eCommerce solution accepts, and make contact with each one to learn with their rates and service offerings.
PayPal (along with other bundled solutions) offer an all-in-one service where you have the payment gateway and the merchant processor together. The advantage here is that you do not have to manage two separate accounts. Rates, however are usually on the high end of the spectrum.
For instance, among PayPal’s services boasts a flat rate (for national sales) based on the sales volume. The better you sell, the less they charge one to process the transaction. The benefit is that no matter which credit card is used (MasterCard, Visa, Discover, or the dreaded American Express), or whether the card is qualified, you obtain charged the same flat rate. This really is unique to PayPal along with other all-in-on services.
Merchant Processors – The payment gateway transmits the encrypted billing data for your merchant processor that is then responsible for routing this data towards the credit card network. The credit card network verifies that the customer’s charge card applies/has enough funds to protect the transaction, then notifies the payment gateway, which in turn communicates with Types Of Taxes In Nigeria. If the transaction is approved, then this merchant processor will transmit your settled orders in your bank account (sometimes this involves a manual process).
The merchant processor is the behind the curtain system that communicates using the payment gateway, your customers charge card network, as well as your bank account. It is a streamlined way to accept charge cards online. It’s important to know whether your payment gateway, merchant processor, bank account, and eCommerce solution all work together. Please make sure your merchant processor interfaces 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 demand a primary payment to configure your gateway.
* Monthly Gateway Fee – this is an ongoing fee for the privilege of utilizing the payment gateway
* Per Transaction Fee – every transaction made gets charged a fee. This too includes; refunds, voids, and declines.
* Batch Fee – if you choose to settle up 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 all the gateway associated with preference.
When reviewing this data ensure that you understand all of the fee’s and requirements. Also understand that you can negotiate virtually all of these items (should you be processing lots of orders). It’s worth a go to call and attempt for the best rate you can! As an example, Authorize.net experienced a package for top volume sites where they charged $50 monthly, but provided 2,000 free transactions plus.07 per transaction thereafter. Added up as time passes, you can save lots of money annually!
Merchant Processors – in choosing a merchant processor verify and evaluate the following:
* Setup Fee – identical to above
* Monthly Fee – same as above
* Per Transaction Fee – same as above
* Contract – same as above
* Qualified Discount Rate – this is a very tricky fee to follow. The Qualified rate is for Best Payment Gateway In Nigeria, and charge card types.
* Non-Qualified Rate – understand which charge cards tend not to qualify as the discount rate so that you can crunch the numbers. This fee can be around double your discount rate.
* Minimum Processing Fee – some merchant accounts will require a minimum monthly transaction threshold. Should 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 with this.
* International Fee- check the rates for customer orders outside of the United States to yiavzu in case you are charged extra.
Services like PayPal charge a flat percentage of the transaction (usually around 2.9% depending on volume), as well as the per transaction fee. Most merchant processors charge within the range of 2.2% – 2.65%.