An often disregarded and under analyzed segment of building your eCommerce company is the backend processing of your orders. Entrepreneurs invest plenty of cash and time into making sure their website design is just right, but often gloss right over their order processing systems. Invest a fractional of your time spent in making design tweaks into selecting the right payment gateway, merchant processor, and bank account, and you will save a lot of money!
Payment Gateways – Put simply, a payment gateway is the system utilized to transmit your customer’s payment information from your secure site to your secure merchant processor. Consider it as the terminal that collects, encrypts, and securely transmits the data for your merchant account. There are various services to choose from when choosing your payment gateway, although, you should know that this gateway you choose must be appropriate for Web Designers In Lagos. PLEASE make sure you get a summary of the various gateways your eCommerce solution accepts, and contact each one of these to understand of the rates and service offerings.
PayPal (as well as other bundled solutions) present an all-in-one service where you have the payment gateway and also the merchant processor together. The advantage the following is that there is no need to control two separate accounts. Rates, however are often on the high end in the spectrum.
For example, certainly one of PayPal’s services has a flat rate (for national sales) based on your sales volume. The more you sell, the less they charge you to definitely process the transaction. The benefit the following is that irrespective of which credit card is used (MasterCard, Visa, Discover, or the dreaded American Express), or whether or not the card is qualified, you get charged the same 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 for your merchant processor that is then accountable for routing this data towards the credit card network. The credit card network verifies that your particular customer’s bank card is valid/has enough funds to pay for the transaction, then notifies the payment gateway, which then communicates with Tax In Nigeria. In the event the transaction is approved, then your merchant processor will transmit your settled orders for your bank account (sometimes this calls for a manual process).
The merchant processor is the behind the scenes system that communicates with all the payment gateway, your clients charge card network, and your bank account. It is a streamlined way to accept credit cards online. It’s important to know whether your payment gateway, merchant processor, bank account, and eCommerce solution all work together. Please ensure your merchant processor interfaces along with your payment gateway and your bank account!
Payment Gateway’s – when selecting a payment gateway verify and evaluate the following:
* Gateway Setup Fee – many payment gateways will require a primary payment to configure your gateway.
* Monthly Gateway Fee – this is an ongoing fee for your privilege of utilizing the payment gateway
* Per Transaction Fee – every transaction made gets charged a fee. This also includes; refunds, voids, and declines.
* Batch Fee – if you wish 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 using the gateway of choice.
When reviewing this data make sure that you understand all the fee’s and requirements. Also keep in mind that you can negotiate pretty much all these items (should you be processing plenty of orders). It’s definitely worth a try to call and check out for the best rate you can! For instance, Authorize.net had a package for high 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 1000s of dollars annually!
Merchant Processors – in choosing a merchant processor verify and assess the following:
* Setup Fee – just like above
* Monthly Fee – same as above
* Per Transaction Fee – same as above
* Contract – just like above
* Qualified Discount Rate – this is a very tricky fee to track. The Qualified rate is for Payment Gateway In Nigeria, and charge card types.
* Non-Qualified Rate – understand which bank cards usually do not qualify because the discount rate which means you can crunch the numbers. This fee can be as much as double your discount rate.
* Minimum Processing Fee – some merchant accounts will demand a minimum monthly transaction threshold. Should you don’t meet this threshold, you happen to be charged another fee.
* Order Refund/Chargeback Fee – when orders have to be refunded, or are charged backed, you might be usually likely to be charged another fee for this particular.
* 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 percentage of the transaction (usually around 2.9% according to volume), in addition to the per transaction fee. Most merchant processors charge inside the range of 2.2% – 2.65%.