The 3 Most Used Processing Solutions That You Can Find on the Market!
If you provide only a single ecommerce payment processing solution for your customer, then you will limit the growth of your company. You need to have at least 3 processing solutions for the payments made by your customers. And the most popular ones that you can find on the market are:
• Credit card. This is the most popular payment processing method used by almost every ecommerce company. Also, most people use their cards to shop online. So, most of your revenue will come from this method. But if you only allow your customer to make payments using this method, then there will be a considerable number that will not be able to do so. Why? Because not everyone is using a card. And even though this method is the most popular, it is not the best alternative for you as a merchant.
• ACH. Most companies that know and use this ecommerce payment processing method will prefer that their customers will use this method to make payments. Why? Because it has several advantages over the credit card payment method. The risks of this method are 0 because only the owner of the account can make the transfers. And the processing time is very short, a few minutes to a few hours at most. In comparison, transfers made with credit cards requires 3 to 5 days to be processed. But because of the lack of popularity, this method can’t replace credit cards. So, you should use both of them and let your customers choose which one to use.
• MOTO. This method is another alternative that any ecommerce merchant should use. A cardholder can make payments through communication means. They can use either the phone, emails, or other similar means to place orders. And neither the card nor the cardholder is present to the merchant outlet. Although this method is not as advantageous for you as the ACH, it is the third most popular method. And you should introduce at least these 3 payment methods to allow your customers to buy your products with the payment method that they want.
What Benefits Do You Get from Using Multiple Processing Solutions?
You may wonder why you should use multiple processing solutions . Why it is one not enough? Well, there are several reasons for that. The benefits that you will receive from using multiple payment methods are not small, and you can’t ignore them. There 3 critical benefits that you can expect from doing this.
• Increased market share. The first benefit that you can expect from multiple ecommerce payment processing methods is an increase in the market share of your company. As mentioned above, not everyone uses credit cards to make payments. So, if you only introduce that method, then a part of your potential customers will be unable to buy. That means that you will lose a lot of sales. On the other hand, by having multiple payment methods, you will avoid that situation. Your company will have access to a larger market, and the share that you can get will also be bigger.
• Streamline the cashflow transactions. The second benefit that you will get is the streamline of the cashflow operations of your company. The procession period of the credit card method is quite big. So, you will encounter some difficulties with your cashflow. Although there are methods to solve them. But that will complicate the cashflow operation of your company. On the other and, if a part of your sales is made through alternative methods where the transactions are processed faster, then you will not need to complicate anything. You can keep the operations simple and easy to understand and manage.
• Increased company growth rate. And lastly, the growth rate of your company will increase. Keep in mind that a larger market share means more sales. So, the revenue and the profits of your company will increase. And this means that you can use the extra money to increase the growth rate of your company. As you can imagine, this effect will compound itself in time, so you will save years of work just by introducing multiple processing solutions.
How Can You Find the Best Ecommerce Payment Processing Company for Your Company?
There are many ecommerce payment processing companies from which you can choose. But not every one of them is the same. There is a difference that may help you or make you lose part of the potential benefits. So, before you choose a payment processor, you should do a little research beforehand. The first thing that you need to keep in mind is that a payment processor is support that must cover the needs of your company in the payment processing field. So, your first task is to define these needs and understand what you are looking for exactly.
After you know what you need, you start searching on the internet after the payment processor that can cover most of your needs. The first step is to search until you find a company that provides all the tools and services required to cover all of your needs. If that is not possible, then choose the one that covers most of them. You will need to invest some time in the research. But it is worth it because the benefits that you will get in the future are massive.
After you finish your search for processing solutions, and you made a preliminary choice, you need to test the software and ecommerce payment processing services of the payment processor. To your luck, most of them offer trial periods that you can use to test them. This will help you prevent a situation in which you made the wrong choice. During the test, you will be able to see if you want to continue a long-term collaboration with the payment processor. Or if you want to choose another company and repeat the test. You can do this until you find the best alternative for your company.
