Every ecommerce store needs a payment solution to accept money from their customers. Ultimately, getting paid for your products is the entire business model your store relies on. Without a payment solution, how will you collect money from your customers? You can’t ask them to wire you the money every time or collect it in person. A payment solution does so much more than provide a gateway for your store. It gives your customers ease and convenience and centralizes all your transactions on one platform.
We’ve narrowed down the best ecommerce payment solution providers to make your choice easier. Have a look below!
What Are Ecommerce Payment Solutions?
Ecommerce payment solutions are services that process any and all payments your customers make on your store. The process starts when a customer enters their information into the checkout page of your website. The payment solution will encrypt the data and send it for processing. The data is verified with the respective bank or financial institution. The bank checks the account for funds and authorizes or rejects the payment accordingly. Authorization is received by the payment solution provider. Finally, the customer can see if the payment went through on your website.
This is a lengthy and complex process that has many touchpoints. And the process changes with different payment methods. This is why you need to invest in a good payment solution. It can help you provide a wide range of payment options to your customers. This gives them the freedom to pay however they feel most comfortable. Another great advantage is that you can increase your target audience. The more payment options you offer, the more people will be inclined to buy from you.
Features To Look Out For?
But the question is, “How do you choose which payment solution to go for?” There are hundreds of payment processing services and gateways on the market. So choosing one can be very tricky. But don’t worry; we’ve listed out features that are essential for every payment solution to have. You can judge your preferred payment solution based on them.
The most important feature to look for in a payment solution is multi-channel payments. You must provide customers with flexible payment options. If you restrict them to just credit cards, they’ll look for stores where their preferred method is accepted. The latest payment options include credit and debit cards, digital wallets, cryptocurrency and even social media payments.
Another essential feature to consider is cost-effectiveness. Each payment solution has a different price structure. Most charge a set percentage of each transaction for processing. These fees can also vary by payment type. You need to choose a payment solution that falls within your budget and helps you maintain your bottom line.
Security measures are also a critical component that a payment solution must have. Your customers trust you with their financial information. And you can’t be careless with it. Your payment solution must comply with the Payment Card Industry Data Security Standard (PCI DSS). They can do so through data encryption, tokenization, SSL or SET. Always discuss security protocols with the payment solution providers before you choose one.
Lastly, you must consider reporting features. Data from your payment solutions can give important insights into how your store and products are performing. A good payment solution should provide simple reporting features that highlight major sales metrics. This will help you analyze the performance of your products and give insights into consumer preferences which are vital for strategic decision-making.
Best Ecommerce Payment Solutions of 2023
PayPal is a common household name. It’s one of the oldest payment solutions on the market right now. And as such, it has expanded greatly. Right now, PayPal operates in over two hundred countries. That’s almost the entire world. This is a clear advantage for businesses because their customer base most likely already uses PayPal. PayPal supports all mainstream credit cards, including American Express, Citibank, Visa, and Mastercard. The payment solution has a very easy-to-use interface, which enhances the experience for businesses and their customers. The payment process is very simple, making it very convenient for customers. And that is what all businesses want. It’s also considered to be a very secure solution. Paypal uses data encryption and real-time monitoring of each transaction to protect your business and its customers. PayPal fees vary according to the services you use. These can range from 1.9% to 3.4%, plus a fixed charge for each transaction.
Stripe may just be PayPal’s biggest competitor right now. It’s a payment gateway that has been around for quite some time. It is feature-rich making it the best option for ecommerce businesses that deal with regular payments and subscriptions. Ecommerce websites that sell both one-off products and subscription services will benefit from Stripe’s versatility a lot. The best thing about Stripe is its easy integration. All you have to do is add a single line of code to your website. This is a big plus for SMBs that can’t afford to hire experts. But for those that do have developers, Stripe offers even more versatility. You can customize your ecommerce payment system in any way you like. Stripe has a large library of coding languages and many integrations to support developers who want more out of their gateway. With its UI toolkit, you can even customize the checkout page of your store. No other payment solution offers this much customization.
Last on our list is Stax. This payment solution deserves a special place on this list because it’s one of the most cost-effective options. It’s ideal for small businesses and startups. Stax has three subscription plans that process up to half a million dollars annually. It also offers custom plans for businesses that have sales upwards of $500,000. Stax charges no extra markup on interchange fees. It only charges a fixed monthly fee of 8 to 15 cents, depending on your plan. These plans and charges are a godsend for SMBs that cannot afford the hefty charges of other payment solutions. Moreover, Stax offers all the features that popular solution providers do. It integrates well with every major ecommerce platform like WooCommerce, Magento, etc. It even provides ecommerce tools of its own. These include heatmaps, inventory tracking and reporting. It’s a one-stop solution for ecommerce businesses that want only the best without compromising on their bottom line.
Invest in a Robust Payment Solution!
Your customers deserve only the best. So you have to give them flexible options to pay at your store. You must also protect their data with the utmost security. For this, it is vital that you invest in a robust payment solution that accepts multiple payment options and has several security protocols in place. All the payment solutions we’ve offered are at the top of the market and offer various benefits. Choose one that meets your needs and fits within your budget.
Which payment solution are you using? Let us know in the comments below!
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