$6.3 trillion – that’s the amount of global eCommerce sales expected in 2023.
It’s safe to say that if you’re thinking of starting a new business or expanding your existing business, you need to take eCommerce seriously.
To do that requires examining eCommerce payment solutions. Which payment option is right for your business?
The answer, of course, is it depends. However, knowing your options will help you make an informed decision. Here’s what you need to know about the different types of eCommerce payment methods.
What Is eCommerce Payment Processing?
Simply put, eCommerce payment processing is the process of accepting payments online.
A customer inputs their payment information. Then, this information is validated by a payment gateway. The transaction is then processed via a merchant account.
The goal of any payment option should be to provide a safe, reliable, and convenient way for customers to pay for their purchases. On the merchant’s end, sellers should be able to receive payment efficiently and quickly.
There are a few different types of eCommerce:
- B2B or business-to-business refers to business selling services or products to other businesses
- B2C or business-to-consumer relates to companies that sell directly to individual consumers
- C2C or consumer-to-consumer refers to individuals selling their products or services directly to other individuals
- D2C or direct-to-consumer refers to brands bypassing traditional channels to sell to consumers
- C2B or consumer-to-business refers to consumers providing products or services to businesses in exchange for payment
Along with the different types of eCommerce, there are different types of eCommerce payment methods. These include:
- Debit cards
- Credit cards
- Mobile payments
- Digital wallets
- Prepaid cards
- Buy now, pay later
- Bank transfers or electronic fund transfers (EFT)
While debit and credit card payments are still the most popular, other payment methods have been growing. Digital wallets such as PayPal, Google Pay, or Apple Pay allow consumers to safely store their card details on their digital devices. These services allow the consumer to make a payment without entering their card details every time.
Now, let’s discuss choosing a suitable payment processor to handle these eCommerce payments.
Choosing the Right Payment Processor for Your Business
A payment processor is a vendor used to manage the details of accepting payments. A payment processor facilitates the movement of monies from the consumer’s bank to the merchant’s bank.
Having a payment processor is a must. At the very least, you will want to accept debit and credit cards for your payment options due to their widespread adoption and popularity.
Aside from that, there are other factors to consider, such as:
Your customers’ preferences will play a huge role in what payment processor you use. These preferences may also vary depending on what countries you operate in.
Likewise, if you are selling in only one country, your payment needs will likely be much simpler than a business that operates globally. However, you should also consider where you may want to do business in the future.
By anticipating your future markets, you can consider new payment methods. You can look for payment processors that comply with international standards.
Work with a payment processor that allows you to provide different payment methods to meet your customers’ needs. Your customers will most likely use credit cards and debit cards. They may also want mobile payment or digital wallet options such as Amazon Pay or PayPal.
The Specifics of Your Industry
Your industry may also determine what payment processors are available to you. Say your business sells products regulated under state or federal law, such as marijuana or firearms. Some payment processors may refuse to provide services to your business.
The same goes for industries with high rates of chargebacks or fraudulent card transactions. For example, gas stations often see lots of card fraud.
You need to understand your industry-specific needs. You also need to look for a payment processor who understands the unique needs of your particular busienss.
At Trinity, we understand the needs of eCommerce retailers, including “high-risk” merchants. Our products are compatible with all major online shopping carts and systems, letting you accept payments from your customers no matter where and how they shop.
You should also consider what payment methods you want to offer and if those payments are one-time or ongoing payments or subscriptions. If operating internationally, you may also want to accept payments in multiple currencies.
The diverse needs of your customers mean you will want to offer various payment options. A buy now, pay later payment method may not be something you initially consider, but customers may desire this option, especially for more expensive items such as furniture.
Ease of Integration
A good payment processor should simplify onboarding and integrate their system into your eCommerce solutions. If you have any questions, their customer support should have an answer.
This extends to continued customer support. Pick someone who offers reliable support, not just when setting up your initial payment system but also post-launch as well.
Security and Compliance
Secuirty should be your concerns regardless of the size of your business. Unfortunately, even the smallest of reatilers are at constant risk of data compromise. Customer payment data must be protected from fraud and theft at all cost.
A good payment processor will support PCI DDS or Payment Card Industry Data Security Standards to ensure you’re adhereing to best practices to protect card holder and customer data. PCI DDS includes securing information such as cardholder names, account numbers, PINs, and card expiration dates.
Processing payments on your site also requires an SSL or Secure Sockets Layer certificate. This encrypts customer data during online transactions and communication.
Other factors, such as safely securing customer data, regular security audits, and two-factor authentication, should also be considered.
Stop Searching for eCommerce Payment Solutions
When it comes to eCommerce payment solutions, there’s really only one answer: Trinity Payments. Safe, affordable, and reliable – that’s Trinity Payments.
Whether you own an online business, a brick-and-mortar store, or both, Trinity Payments can help handle your payments across multiple systems and shopping carts.
Ready to get started? Contact our associates today to learn more!