Selecting The Right Payment Gateway and Payment Processor

Jan 06, 2022

Online shopping has grown considerably and continues to break records. Fueled by the pandemic, those that have never shopped online became avid online shoppers, seemingly overnight. 

If you are an e-Commerce business or hope to launch one, your business will depend on having the right payment gateway and payment processor to take credit card payments. 

The Difference Between Payment Gateways and Payment Processors

Payment gateways process credit card payments on e-Commerce sites as well as traditional brick-and-mortar shops. It can be likened to a virtual cash register within an electronic transaction. Payment gateways take these steps to process payments:

  • Encryption: The payment gateway encrypts (encodes for private use) data for use between the buyer and the seller. This all takes place between the user’s browser and the server of the retailer.
  • Authorization request: This happens when the payment processor receives approval from the credit card company or financial institution to move forward with the transaction. 
  • Fulfillment: When the payment gateway receives authorization, it allows the website and the interface to move to the next action. 

Payment gateways also perform other functions such as calculating tax costs, screening orders, and using geolocation. Ultimately, the payment gateway gives the authorization to transfer funds between the buyer and seller. 

The payment processor or the merchant service provider, carries out all the grunt work, such as moving the transaction along through the processing network, sending a billing statement, coordinating with your bank, and more. More often than not, your merchant bank is your payment processor. So they basically facilitate the transaction between your merchant account and your bank. 

How To Choose The Best Provider

Choosing the best provider is about offering your customers a payment journey that is secure, efficient, and seamless. By delivering on these features, you are sure to increase your customer base and your revenue.

Some of the most important considerations to look out for are the following:

  • User-friendliness

The solution you choose must be convenient for both your business and your customers. Customers want an uncomplicated checkout experience without long, drawn-out forms. Easy is the name of the game. 

Customers also don’t want to provide an excessive amount of personal information. The right payment provider will take this into consideration.

  • Easy integration

The payment systems you choose should easily integrate with your existing software. It would be best if your payments can be directly tied into your “customer relationship management procedures” as well as other operational equipment.

  • Costs

Both payment providers and payment gateways charge a monthly fee in order to use their services, plus charge a percentage for every transaction. Do consider what types of services you will need for your business and be well-informed of the costs involved.

It’s about finding the right solution that fits your business and not paying for things you don’t need. This will save you money.

  • Fraud prevention

As an e-Commerce store, you will be a ready target for fraudsters. A reputable payment provider will have in place automated security features as part of their packaged offering. This technology is able to detect any suspicious transactions and averts data breaches or leaks

Your Provider Can Make Or Break Your Business

It is of utmost importance to do your due diligence and research your providers thoroughly before you make your choice. As one of the most important decisions you can make for your e-Commerce website, choosing the best payment gateway and payment processor will ensure that your business and customers can have secure, seamless, and simple purchases online.

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Having a merchant account allows an account holder to take advantage of merchant cash advances. When a merchant is approved for an advance, the business agrees to receive a lump sum of cash in exchange for an agreed-upon percentage of future credit card sales.

Pricing varies depending on the merchant’s industry, past credit card processing history, the type of business seeking the account, average ticket sales, and average transaction volumes.

Yes, EMB works with merchants who are building their credit, as well as those who have poor credit. EMB also approves merchants that have no credit card processing history and businesses that have lost their merchant accounts due to high chargebacks.

Several factors influence a merchant’s risk level. Though only one factor likely will not get a merchant classified as high risk, a combination of these may: business size, location, and industry, credit score, credit card processing history, a industry’s reputation for excessive chargebacks, a prior history of high chargeback ratios, and whether a merchant exclusively sells online.

Virtual terminals are stationed on a merchant’s website, making it easy for customers to make a payment or purchase online. Merchants or a payment processor can easily set up virtual terminals, so online businesses can accept credit and debit card and e-check transactions.

A merchant account is a business account with an acquiring bank. Without this business account, which actually works more like a line of credit, a merchant cannot accept and process credit and debit card transactions. Businesses need a merchant account to accept major credit cards via a static point-of-sale terminal, mobile card reader, or through a virtual payment gateway.

After filling out EMB’s simple online application and submitting any necessary, requested documents, many merchants get approved within 24 and 48 hours.

EMB specializes in working with high-risk merchants. EMB works with many merchants, including but not limited to businesses in these industries: gambling and gaming, adult entertainment, nutraceuticals, vaping and e-cigarettes, electronics, tech support, travel, high-end furniture, weight loss programs, calling cards, e-books and software, and telecommunications.

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