Choosing an Ecommerce Payment Processor
Managing an ecommerce business is an exciting endeavor, but it also comes with a lot of important decisions to make. One of the most crucial decisions you’ll make is choosing the right payment processor for your online business.
Managing an ecommerce business is an exciting endeavor, but it also comes with a lot of important decisions to make. One of the most crucial decisions you’ll make is choosing the right payment processor for your online business.
What Is a Payment Processor?
A payment processor is a service provider that handles the financial transactions between your business and your customer and is a vital part of any ecommerce operation.
There are many different payment processors to choose from, so it can be overwhelming to figure out which one is the best fit for your business.
Here are some things to consider when choosing a payment processor for your ecommerce business:
Payment Options
While credit and debit are standard with any merchant account, what additional options do they offer?
Popular features include:
- Mobile Payments
- Digital Wallets
- Text-To-Pay
- ACH
- Paypal
- Zelle
- Google Pay
Rates & Fees
Pricing can vary between providers; In addition to processing fees, there can also be additional monthly and other ancillary fees.
- Monthly Flat Fees
- PCI Fee: Charged in reference to the required security measures used to protect customer data
- Batch Fee: Fee for collecting your transactions in a batch for a deposit
- Merchant Account Fee: General fee for utilizing an operational third-party merchant account
- Payment Gateway Fee: If you use a third-party gateway, you’ll usually pay this as a separate fee.
- Processing Fees
- Flat Fee: A percentage of every sale, charged on each purchase
- Interchange-Plus Fee: This is the interchange rate established by the card networks, in addition to a markup fee
- Transaction Fee: Sometimes added to a flat rate or interchange plus rate, typically ranging between .05 to .35 cents.
- Situational Fees
- PCI Compliance Fee: Incurred monthly fine based on failed implementation of security requirements
- Chargeback Fee: A fee incurred following a refund of your product or service
- Non Sufficient Funds Fee: Charged if the bank account does not maintain sufficient funds to pay required fees to the card processor.
Security
Verify the processor is PCI compliant, which means they meet the standards set by the Payment Card Industry Data Security Standard (PCI DSS). This is a requirement by the card networks.
Look for payment processors that use encryption to secure transactions, and offer fraud detection and prevention tools.
Integration With Your Ecommerce Platform
Integration with your ecommerce platform is an absolute must. If you’re using a popular platform like Shopify or WooCommerce, you’ll likely have a number of providers to choose from that are already integrated with the platform.
If you have a custom platform, ensure the processor can provide either a direct connection or connect via a gateway. This will make it easier to set up and manage the payment process.
Customer Service
Choose a company with a track record of great customer service. Look for providers that offer high quality support through multiple channels, such as phone, email, and live chat, and consider their availability and response times.
Recurring Payments
Does your business offer subscriptions or other products that require recurring payments?
Look for a processor that can handle these types of transactions with features such as automatic billing and the ability to manage recurring payments.
International Payments
When a merchant decides to expand their brand to other markets around the globe, one must consider a provider’s ability to handle international transactions. Some companies may have additional fees for international transactions, or may not support certain currencies. One should also consider whether they are able to handle different languages and currencies, as this can make it easier for international customers to make purchases from your site.
Revitpay is an all-in-one payment processing solution that solves the roadblocks mentioned above & can help your ecommerce business run both smoothly and efficiently.
If you’re looking for a merchant provider that offers:
- A range of payment options
- Competitive fee offers
- Strong end-to-end security measures
- Expert one-on-one customer service
Contact our team at Revitpay today.
Questions related to this guide
How much are credit card processing fees?
Credit card processing costs most U.S. businesses between 1.5% and 3.5% per transaction. The floor is interchange — the card networks' published wholesale cost — plus your processor's markup. Online and keyed transactions cost more than in-person chip payments because card-not-present fraud risk is priced into the rate.
Read full answerWhat is a merchant account?
A merchant account is the arrangement with an acquiring bank and a payment processor that lets a business accept credit and debit cards. Card sales are authorized and settled through it, fees are deducted, and the funds are deposited to your business checking account, typically within 1–2 business days. Approval involves underwriting, because the bank takes on risk for every sale.
Read full answerWhat is a payment gateway?
A payment gateway is the software that securely captures card details on your website or app, encrypts them, and sends them to the processor for authorization — the online equivalent of the card terminal in a store. Gateways also handle recurring billing, tokenization, and fraud screening before a transaction ever reaches the networks.
Read full answerWhich industries are considered high-risk?
Commonly high-risk industries include CBD and hemp, firearms and ammunition, nutraceuticals and supplements, telehealth, vape and tobacco, subscription and continuity billing, travel, coaching and info products, debt services, adult products, and pawn. Most appear on the published restricted-business lists of Stripe, PayPal, and Square — which is why those providers decline them.
Read full answerWhat documents do I need to apply for a merchant account?
A standard merchant account application asks for a government-issued ID, your EIN or business registration, a voided check or bank letter for your settlement account, and about three months of recent bank or processing statements. High-risk businesses should also expect to provide licenses, supplier agreements, and financial statements.
Read full answerCan gun shops and FFL dealers accept credit cards?
Yes. Gun shops and federal firearms licensees (FFLs) can accept credit and debit cards, and Visa says it serves any legal purchase. Paying by card does not change the dealer's federal duties: record the sale on ATF Form 4473 and contact NICS before transfer. The harder part is finding an acquiring bank willing to board the business.
Read full answerWhat is a chargeback?
A chargeback is a card payment taken back by the cardholder's bank after the cardholder disputes it. The issuing bank sends the dispute through the card network to the merchant's bank, which deducts the amount from the merchant's account. Visa's merchant rules call this a dispute. Mastercard calls it a chargeback. The process is the same.
Read full answer