What Is a Third-Party Payment Processor?
By admin January 10, 2022
Payment processors are the companies who allow online merchants to accept credit card transactions. They accept your monthly fees, charge you a per-transaction fee, and pay you the proceeds on your sales.
If you’re starting an ecommerce business or accepting payments on your site for services or subscriptions, then you will need to find a suitable payment processor. As a business owner, you’ll need to make sure that your website is receiving the highest number of orders as possible to maintain profits and not lose money on processing fees.
A third-party payment processor will work with your ecommerce site to ensure smooth transactions and quick payouts. They can be set up in a matter of minutes and will be capable of handling online credit card transactions.
How Do You Choose the Best Payment Processor?
Choosing a payment processor can become an arduous task if you don’t know what to look for. Here are three tips that you should use when considering which company to work with for your business:
- Ensure that they are PCI compliant. The first consideration you should make is whether or not the processor is PCI compliant. This is an acronym for Payment Card Industry Data Security Standard, which was established by the major card companies to help protect consumers and corporations from fraud.
- You will want to look into what fees are associated with your processing account. Third-party payment processors charge different rates for using their services. Be sure to consider which payment processors offer the best rates, as this could help you save money in the long run. You will also need to look into other fees that are involved with your monthly statement.
- Look at the business’ track record and online reviews. Check out customer feedback on various forums about your potential payment processors. You will want to look out for any complaints or problems that customers have experienced working with the business.
How Can I Increase My Sales Conversions?
Once you’ve found a third-party payment processor, there are other steps that you can take to help increase your sales conversions. By following these tips, your ecommerce sales could increase exponentially.
- Ensure that your site has SSL certification. This is a security feature that allows for an encrypted link between your website and customers’ browsers, which will keep information safe from cyberpunks. According to Google, more than 50% of online consumers are more likely to buy from websites with this certification.
- Put security in place for transactions. Put in place any type of security measures for your customers in case they lose their data while on your site. This could be something as simple as requiring a captcha code to help verify that the person is not a robot.
- Give your customers the option of paying with gift cards, store credit, or coupons. By allowing customers to use these options, you will be giving them a chance to make a purchase without a credit card.
- Ensure that your site is compatible with mobile users. This is especially important if your target audience is anyone who uses their cell phone, tablet, or other mobile device for browsing the web and making purchases. More than half of all ecommerce purchases are made through mobile devices, so if your site is not user friendly with these types of devices, then customers will be less likely to complete their orders.
- Include social media buttons on your page. This could help increase web traffic and sales conversions. Once customers have shared your website or product through Facebook or Twitter, they are more likely to return, as this will allow for their friends and family members to see the product or website.
- Have a sale page available on your site. Offer special deals, discounts, coupons, and promotions through your site’s sale page. This will make customers want to check back often in case there is something new that they can purchase at a discounted price.
- Be sure that your website is search engine optimized. If your site is not easy to find by those looking for it, then there’s a chance that customers will not know about it and will look for other options instead.
- Include testimonials from customers on your website. If you have a satisfied customer, then ask for their permission to add a testimonial about your business to your website. This will help encourage other customers who are considering making a purchase from you.