In this step we will teach you what payments processors are and how to use them so you can successfully receive payments from your customers online! This is obviously a very important step to learn, so make sure it all makes sense and you integrate your payment processor properly on your website!
Payment processors are companies that will take the credit/debit card information your customers enter online and process it successfully with the respective card company such as Discover, Visa, American Express, Mastercard, etc.
Most payment processing companies offer a standard transaction fee of 2.9% plus .30 cents per transaction. As an example if a customer charges $100 to their card after purchasing a product from your store, you would receive a net amount of $3.20 less than $100 which comes to $96.80 which would appear in your account. You would then take tat $96.80 and send the funds needed to your supplier to pay them for the product and to ship it and you would keep the rest as your profit!
There are many payment processing companies out there in the world. Here are some of the top companies we recommend:
- Shopify Payments – if you are using Shopify for your ecommerce platform then integrating a payment processor is very simple to do. Be sure to ask them if you have any questions about how to do this, but you would simply use their built in payment processing system.
- https://PayPal.com – this company is very well known and easy to integrate with your store. The free business standard account is the one to set up. You can get your web person to integrate it for you if needed.
- https://Stripe.com – this is a great payment processor and very flexible to use if you are not using Shopify payments . Use Stripe if you plan on putting an SSL on your store to allow people to stay on your website.
- https://Authorize.net (this system would require you to get approved. There’s an application process. Only use this company if you are in need of a new processor and your are already a growing, profitable business. It is the more expensive route to go but can be more flexible in accepting higher risk types of businesses into their system to allow payment processing to occur.)
To keep your customer on your website and not have them re-routed to a 3rd party website like PayPal you will need to make sure to get a security certificate in place (SSL). You can get an SSL by going over to your hosting company such as Bluehost and getting one for around $50 to $80 one time each year.