eCommerce Payment Processing 101: from Optimization to Compliance

Your online business needs the right payment processing solution to be able to maximize your income stream and give customers a great experience every time they buy from you.

Even if your trading involves taking payment from customers in a sector that some payment providers might consider risky, the good news is that there are some fantastic high risk payment processing options available. That’s just one aspect of eCommerce payment processing that you need to be up to speed with. Here’s a quick rundown of some key points.

The four key elements

A good place to start would be with a clear understanding of the essential components of payment processing that need to align in order for everything to run smoothly.

It starts with the payment gateway. This is the part where sensitive customer data is encrypted before being transmitted between your website and your chosen payment processor.

Your payment processor then handles the next key steps of the transaction process. This involves three stages, authorization, verification of details, followed by fund settlement.

Another essential component is the merchant account. This is best described as a temporary holding account for all processed funds, before being forwarded by bank transfer.

The last piece of this particular puzzle is the tokenization system. This is the part where actual payment data is replaced by secure alphanumeric codes.

Each of these essential components combine to create a seamless payment environment where customer data is collected and processed in a secure way and allows the payment transaction to be completed in the most secure and efficient way possible.

Delivering a range of payment options

You want your customers to be able to choose their preferred method of payment on your site. That means using a payment processing provider that enables you to collect payment via any of the major payment channels, including digital wallets such as Apple Pay and Google Pay.

The ability to trade globally

Trading online usually means that you have access to a global marketplace and your customers could be almost anywhere in the world. International payment options should be considered an essential tool to have at your disposal.

Your payment processor should be able to offer a facility where foreign currencies are converted at current exchange rates. This allows you to receive payment in your preferred currency.

Mobile optimization is a non-negotiable

When you consider that about half of all online eCommerce payment transactions originate from a mobile device you should quickly realize that mobile optimization is not an optional add-on, it’s essential to giving your customers the right payment options and experience.

Make sure that you are able to offer a mobile-optimized checkout process with the help of responsive design.

Guest checkout needs to be an option

When you make your customer create an account in order to be able to checkout, this has a detrimental impact on conversion rates. That’s why it is essential that your payment processing options include the ability for someone to checkout as a guest, rather than having to enter too many details and creating an account.

These points are considered critical to how your payment options are created and operate. It is a part of your eCommerce business that is absolutely essential to get right. Be sure to check that your payment processing provider delivers on all the points that matter to you before signing up.