To operate a successful e-commerce business, you need buyers who are willing to pay for your product or service. But to retain these customers, you need to establish an available, feasible, and safe payment process.
With this in mind, we have compiled a comprehensive step-by-step method to help you set up a convenient and protected online payment system for your e-commerce business. Read on for more.
What is an Online Payment System?
Online payment systems are digital means of generating payments for goods or services. An online payment can be carried out using debit/credit cards or by inter-bank transfers.
With the boom in the volume of e-commerce businesses, there has been a multinational outburst in the use of online payment strategies. In fact, a recent report by Statista proved that the cumulative commercial value in the digital payments sector is estimated to reach US$8.56tn in 2022.
Benefits of Online Payment Systems
Here are the benefits of adopting an online payment system for your business:
- Maximise Time and Credits
Customers want to meet their needs without spending too much time searching. With online payments, your buyers can maximise their time and pay from anywhere and anytime. Hence, it will save you outstanding debts and credits by allowing customers the flexibility to pay at any point on the payment’s due date.
- Attract custom
It will also help your e-commerce business to attract more customers as more payment options mean that you will be appealing to more people. The iGaming industry is a good example of enjoying a broad reach through multiple online payment gateways. That’s why sites like Golden Nugget stand out, here’s what BonusFinder had to say about them; their highlights and the payment options they offer. By offering more options such as payment methods and game choices, you will be more likely to appeal to the varying wants of your customer base.
- Trusted Security and Easier Accounting
Carrying cash around is risky and inconvenient. Apart from robbery, there might be other mishandling risks. Online payment platforms are secured through reliable encryption that keeps money safe. Stressful and manual data entry methods can easily be replaced because customer data is available for easy download online. This is possible using online payment forms.
How Online Payment Systems Work
For credit cards, the main procedures occur between the payment gateway and the merchant bank. The payment gateway receives the data from the customer’s card and sends it to the issuing bank through the payment processor. After verification by the issuing bank, the payment gateway collects the input and begins fee transfer to the merchant bank. Vitally, you should note that all these procedures happen within a few minutes.
Guidelines for Providing a Payment Service
- Hosting: Contact a team of technical specialists to enable you to establish a hosting platform.
- Certification: Get an SSL (Secure Socket Layer) certificate to obtain data encryption.
- Interface: Make sure the payment interface design is straightforward and user friendly. Add a dispute resolution feature too.
- Processing Method: Choose a reliable payment processor to incorporate with your site.
- Testing: Test your payment platform before launching.
- Support: Set up a customer support feature via mail or chat.
Creating an online payment structure is possible with the guidelines mentioned above. However, to satisfy more customers, you must acquire a diversity of payment gateways. With additional gateways, you will boost the profitability of your e-commerce business.