Frequently Asked Questions About Payment Processing When Launching an Ecommerce Store

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Frequently Asked Questions About Payment Processing When Launching an Ecommerce Store

If you’re starting your own ecommerce store, it’s essential to understand that payment processing will be an important part of your day-to-day business. However, the joy of receiving your payments can quickly turn sour if you’re not working with a suitable payment processor.

You’ll make a few missteps, especially when you’re starting. You’ll have a lot of questions regarding how payment processing works. It’s a complex system with so many different charges that will spin your head.

This blog will try to simplify things by answering some of your most frequently asked questions!

Question 1: How Do I Choose a Payment Process for My Ecommerce Store?

This is a very valid question, but you have to keep two things in mind.

  • Number one: what payment processing services does your business need.
  • Number two: which payment processing tools can help improve your customer’s experience.

You should consider how your payment processor will integrate with your other business tools. Fully integrated payment solutions will not only make payment processing faster and more efficient, but they will also help you assess your business health easily.

Secondly, you should consider the cost because payment processors charge different fees for the same services and solutions. Look for a provider who offers simplified and transparent pricing to avoid getting caught off guard with unexpected expenses.

Question 2: How Much Does Payment Processing Cost?

All payment processing companies will charge a processing fee. The payment processing system comprises various stakeholders, including the payment gateway, payment processor, and merchant service. Moreover, the issuing bank, credit card brand, and merchant bank all take a piece.

The overall fees that your payment processing services provider is charging you depend on several things, such as interchange fees. Keep in mind that bank-owned payment processors charge higher than third-party payment solutions such as CardLogic.

Question 3: How Many Payment Options Should I Offer?

From credit cards to digital wallets, there are numerous online payment options available. Generally speaking, the more payment options you offer on your ecommerce store, the better.

google pay option

Offering multiple payment options reduces your chances of a customer walking away because their preferred payment option isn’t available.

Question 4: How Do a Payment Gateway and Processor Differ?

These two are very different, but many people often use them interchangeably. An online payment gateway is a tool used by ecommerce stores to link their website to the payment processor. A payment processor, on the other hand, verifies and confirms the details and transfers the funds.

However, if you work with a company that offers payment processing solutions, you don’t have to worry about these differences. You’ll be getting an end-to-end solution for your payment needs.

At CardLogic, we offer comprehensive, integrated payment solutions for ecommerce businesses and online stores. From credit card processing to POS solutions, we cater to all your payment processing needs. Contact now to learn more about how we can help your ecommerce store.

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