There’s no doubt that online shopping gave the offline retail industry a run for their money. E-commerce created a massive shift in how consumers purchase goods/services and how companies run their business. Initiated by online leaders such as Amazon and Overstock, as well as popular retailers like Walmart and Target, various options for e-commerce are now available for all types of businesses.
Small businesses are getting their share of the action with easier access to e-commerce solutions. This enables business owners to effortlessly establish an online presence, sell their goods, and immediately get paid online via credit cards. But before anything else, here are four steps you need to take before you can accept credit card payments online:
1. Create an online store.
In the early days of the internet, setting up an online store was complicated and expensive. Business owners had to invest a large amount of both time and money in order to establish a strong online presence.
As technology evolves, so does the mindset of business owners. Currently, even the smallest of businesses can readily access a wide range of web commerce services that enable them to build an online presence that’s stronger, smarter, easier, and faster than ever. Most e-commerce solutions today even allow you to automatically update inventory.
You don’t need to have an IT degree in order to create a website for your business. With the right service provider, you’ll be able to create an aesthetically pleasing, user-friendly website in just a few clicks.
2. Get paid – set up an online payment method.
With the abundance of payments enablement options, preparing to receive payments on your online business doesn’t seem as complicated as you thought it would be. Other than taking filling web-based orders, you can install a tablet-based point-of-sale system that enables your customers to input their card information and pay online while in your store. As more consumers pay for their purchases through their smartphones, businesses are now looking to create user-friendly mobile apps to facilitate sales. To create a more convenient shopping experience for customers, businesses usually accept credit card payments online.
3. Choose a method on how you accept credit card payments.
There are two ways to take payments via credit cards:
- Merchant Accounts: Accepting payment via a merchant account is more complicated, but it does have its benefits. You need to contact your bank to set up a merchant account before you can take payments. The bank charges a transaction fee, but it’s usually lower than what third-party companies typically charge.
- A better option for larger businesses.
- Lower transaction fees.
- You have more control.
- There’s a risk for credit card fraud or chargebacks.
- Third Party: There are companies that will accept your customers’ credit card payments for a fee. These companies are also known as payment gateways, and they handle all the techy details – like creating a merchant account – for you. If you’re just getting started with your online business, this method makes it easy for you to accept payments online. Examples of popular third-party companies are PayPal, Stripe, Square, SecurePay, and WorldPay.
- Great for small businesses.
- You don’t need to set up a merchant account.
- The third party handles the entire process.
- Easy to get started.
- Lesser chances of fraud or chargebacks.
- Higher transaction fees compared to merchant accounts.
Looking to accept credit card payments for your online business? SMB Compass can help! We specialize in helping business secure the funding it needs for growth and expansion, including the venture of accepting online card payments.You can contact us by phone at (646) 569-9496 or email us at firstname.lastname@example.org.