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The way people pay for goods has changed dramatically over the past decade as many customers and businesses favour online payment methods over conventional methods such as cash and cards. If you’re a business looking to improve how you can improve the efficiency of your business by including some of these modern payment methods, check out our helpful tips.
Common ways to optimise payment processing methods for an eCommerce website
Learn about available payment processing methods
Suppose you’re new to the world of online payment processing methods.
In that case, it’s best to start by learning the difference between the two main types of payment processing solutions:
- Payment aggregators – Large businesses handle business transactions for many companies. They process their transactions through a common, one-size-fits-all interface, such as a widget, app, or website. Examples of payment aggregators include PayPal, Square, and Stripe. These companies are easier to use but incur higher costs.
- Dedicated payment processors – Payment processors are tailored closely to the needs of individual businesses rather than a generic application that all its merchants must use. Tailoring allows your company to use your merchant account when processing transactions.
There are strengths and weaknesses to each choice. You may have a system tailored to your business and better customer service with a dedicated payment processor, but the solution may require a significant initial investment, which may put off companies on a budget.
Focus on the customer experience
In retail, the customer is king, and the whole online shopping experience should revolve around making their time on your site as easy as possible. Nowhere is this more important than the payment process. Suppose a customer has a bad experience while trying to pay. They may not bother completing the purchase, let alone use your site again!
One way to improve the payment process is to make it as simple and seamless as possible. Ideally, it should only take a few clicks for the customer to buy something. So hosting payment providers that offer one-click payments is a surefire way to keep your customers coming back. Another way to improve your service is to include a “buy now, pay later” option, which makes it financially easier for your customers to make their purchases.
One prominent reservation people have about using online payments over traditional methods is the potential for fraud. The idea of posting their bank details online on a site they’re unfamiliar with is an unappealing process to many people, and it can prevent them from making a purchase. By being proactive with your fraud prevention, you can gain the trust of your customers, resulting in better customer satisfaction.
There are several methods a company can use to increase their fraud prevention. A popular way is a two-factor authentication for logins, which drastically reduces the number of hacked accounts. Another successful method includes IP address verification, which cross-references the location of the customer and the address on their payment method. Finally, other methods to increase fraud prevention are minimum transaction limits and card verification codes (CVV).
Wide variety of payment methods
Technological advancements over the past decade mean there are now several ways to process online payments. Most customers will have one they prefer to use over all others. Providing a wide variety of payment processors increases the chance of hosting one of your customer’s preferences, thus enhancing the user experience.
A truly modern business should provide customers with various payment methods, such as debit/credit cards, e-wallets such as PayPal, and even cryptocurrency! Some industries, such as the online casino industry, use the number of payment providers as a selling point to their customers. In fact, many online casinos nowadays provide several payment options for their customers playing top online slots and live casino games, as it could be the difference between the customer choosing them over their competitor.
Know your payment processing costs
Finally, one of the most important ways to optimise your online payment processing is to be aware of all costs associated with hosting each payment provider. Fees from payment providers can eat into your bottom line. So unless you want to pass on those fees to your customers and risk losing their business, you need to find a way to manage them.
The best way to avoid hidden costs and fees is to dig into your processing statement. Many businesses will look into the effective rate, the total fees divided by the sales volume. However, this only sometimes tells the whole story. You can discover hidden fees or rate increases by digging deeper into what’s in the statement. Hidden fees can cost your business hundreds or thousands of dollars, so always be diligent when checking your statement.
The world of eCommerce is an ever-changing one. If you want to stay ahead of the curve, you must be on top of the latest developments in your business. Optimising your payment methods creates a more user-friendly environment, which will help grow your business in the long term.