Online Credit Card Processing for Small Business Australia 2019 – When you have a business, you probably want to know the basic information (and also your options) about online credit card processing. It is basically a handy practice that allows you to grow as well as providing alternative payment method for your customers. Of course, it would be handy if you know the general facts as well as the real implementation for the processing.
- 1 Online Credit Card Processing for Small Business 2019
Online Credit Card Processing for Small Business 2019
Major Functions Online Credit Card Processing
As the name suggests, the online credit card processing will help you process your customers’ credit card through the online system, so the funds can get into your account and the payment solution is resolved. You see, when you have a business, providing different kinds of payment methods for your customers will be much appreciated. It gives them some kind of freedom to pick which payment manner that they like the most. Instead of them having to bring a lot of cash, they can use their cards. Basically, when customers aren’t being limited with the payment options, they will like it – and they tend to come back for more.
The online credit card processing allows your customers to pay with the free credit card, and you can check whether the numbers are legit or not. It is a payment that is done online so you really want to be sure that the customers aren’t using fake numbers or they have enough funds to complete the transactions. The processing alone will need a gateway and also a processor that deliver the message over the network. Having such a processing technology has its own benefits, and you as the business owner can expect some perks from it.
The basic implementation is just the same as the regular credit card. The buyers need to swipe the regular credit card when they are using it at the offline stores. In the online system, they need to fill in the information about the credit card, such as the number, the expiry date, and such thing alike (depending on the merchant). Through the provided information provided, merchants can check and confirm whether the credit card is valid. If it is valid, they can proceed with the purchase and complete it. But when the card is somewhat rejected or declined, the buyers won’t be able to continue.
How the Credit Card Processing Works
The idea for this processing technology is pretty simple, really. Here are the steps for the payment:
- To finalize the purchase, buyers need to provide their information.
- This info will be encrypted and sent to the processing company
- The processor will then submit this data to the network, like MasterCard or Vis
- The network sends this info to the buyers’ bank, making sure that the numbers are legit and the buyers have enough funds for the purchase
- The buyers’ bank will submit the status (declined or approved) to the processor, which will send the info to the merchant (which is you).
- When you have got the approved message, you can fulfill the buyers’ order
- The buyers’ bank will send the required funds to the network, which will then delivers it to your account.
Online Credit Card Processing Fees Comparison
Don’t forget that there is nothing such a free service and it is applicable for this processing service too. Many of the merchants are reluctant to use this service because of the extra service. Expect these fees to be charged to your account monthly:
- Gateway fee. Expect at least $20 per month which is generally applicable for the use of the process
- Discount rate. The rate is various, from around 2.00% to 3.00%
- Transaction fee, which includes per fee transaction (around $0.25 to $0.35 for each transaction), per gateway cost (around $0.06 to $0.15 for each transaction)
- Statement fee, which ranges from around $10 per month to around $15. This is like the written report sent to your address to provide information about your financial standing.
Different Kinds of Processing Types
There are different types of online credit card processing types. Some of them are the online credit card processing for nonprofits usage whose detailed implementation will be different from the one dedicated for business. It is possible that the processing fee for the nonprofit organization will have lesser administrative fees because of their social function.
How to Choose the Right Processors
You probably want to focus on choosing online credit card processing for small business, considering that the fees are mostly lower than the credit card processing services that have been mostly used by bigger companies or even major brands.
It would help, though, to know some of the tricks in getting the right service. There are some things that you may want to focus when you choose the suitable online credit card processing for your needs:
- The fee. It would be logical and wise if you can make online credit card processing fees comparison. This is naturally and logically related to your business and its condition (whether it is a startups, just growing, etc). If you just start, you may want to choose a provider with the lowest monthly fee. But be advised that the lowest may not be the best. In cost, there is a matter of quality. If you pay low and the quality is low, it is best to choose one with the standard price rather than compromising service and performance.
- Gateway integration level. The lower the level, the more procedures that you have to go through for the payment to reach to your account. You want a provider that can offer high level of integration, which will make sure the fast and efficient transfer from the buyers’ account to your account.
- Customer service. Not many people realize that this is quite important because you will be depending on it in the event that there is something wrong. We are talking about payment and money here; you want someone that will be there 24/7. You want someone responsive.
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By the end of the day, it is up to you to make the final decision. Be sure to perform a thorough research. Don’t rush things. Get the details. Compare providers. You should be able to find the right online credit card processing if you aren’t hasty.