So you have decided to take payments online… Exciting! You are taking the big step in brining your business into the digital world, and it opens up a whole new realm of opportunities for growth. But before you dive in, you have to make an important decision, which payment processor to go with. It’s a fun journey, especially when you’re armed with the right knowledge to make the best choice. Let’s break it down so you can hit the road to online success with confidence.
Starting with the standard definition: a payment processor is a service that handles the transactions between a customer’s bank and your business’s bank when a payment is made, usually by credit card, debit card, or digital wallets. These processors ensure that payments are securely transferred and approved, enabling smooth transactions for online and in-person purchases.
Why Are Payment Processors Important?
Payment processors play a very important role in your business, they enable you to accept various forms of payments from customers. A good processor ensures fast, secure, and reliable transactions, which helps build trust with your customers and keeps your business running smoothly. Without a payment processor, it would be difficult to accept anything other than cash, which limits sales potential.
Who Are Some Payment Processors?
There are many payment processors out there for you to choose from. Depending on the online store or web service you are using, it could dictate what you use. Here’s a list of some of the most trusted payment processors used today:
- PayPal: One of the most well-known and widely accepted payment processors, offering easy integration and options for both small businesses and large enterprises.
View their pricing here - Stripe: Popular for its developer-friendly tools, Stripe allows businesses to accept various payment methods and is highly customizable for online stores.
View their pricing here - Square: Originally known for in-person payments, Square also offers robust online payment processing and integrates well with both e-commerce and physical stores.
View their pricing here - Shopify Payments: Specifically designed for Shopify users, this processor makes it easy to manage all payments directly through the Shopify platform without extra transaction fees.
View their pricing here - Amazon Pay: Allows customers to use their Amazon account to make payments, providing a convenient and trusted option for online shoppers.
View their pricing here
These processors are reliable options for most online stores, each with its own strengths depending on your business needs.
How to Choose the Right Payment Processor?
Here are a few key factors to consider when selecting a payment processor for your business:
- Fees: Payment processors typically charge transaction fees (a percentage of each sale or a flat fee per transaction). Compare rates and understand how these fees impact your profits. See the links in the section above to see how each processor structures their pricing.
- Ease of Integration: Make sure the payment processor integrates easily with your existing systems, whether it’s your e-commerce platform, website, point of sale (POS) system, or accounting software. Seamless integrations saves time and headache when getting your online business off the ground!
- The Right Tools: Make sure that the payment processor includes all of the services you need to be successful. Whether you are looking to sell individual items online or charge for subscriptions, make sure that the payment processor can deliver!
- Scalability: As your business grows, your payment processing needs may change. Select a processor that can scale with your business, offering additional services like recurring billing, international payments, or multi-currency support.
- Security: Security is vital for protecting both you and your customers from fraud. Look for processors with PCI compliance and advanced fraud detection features to ensure your transactions are secure.
Choosing the right payment processor is an important decision that can have a big impact on your business’s success. By understanding the fees, features, and security offered by each option, you can select a processor that fits your needs and helps you provide a smooth, secure experience for your customers. If you are looking to set up an online store, or have more questions on e-commerce, reach out to us! We will be happy to help.
