Most customers are usually attracted and remain loyal to businesses that have efficient payment systems. As such, choosing the right payment partner for a business is critical particularly for e-commerce companies. Merchants are expected to have a suitable payment gateway system as soon as they have their businesses running. It is, however, a significant challenge to identify the most effective payment partner with rampant services existing in the market. In order to make an informed choice, here are the three Ps that every merchant should master.
Players in the Online Payment Transaction
It is important to note that there are three key players in gateway payment processes, whether one sells in person or through online. On one end is the merchant (owner of the business), and on the other end is the consumer. The two parties are, in turn, connected by different technologies including the payment gateway and the payment processor. To approve the payments, the merchant requires an acquirer who is to accept all transactions and make deposits onto the merchant account. The customer, on the other hand, would need a debit or credit card and make transactions through an issuing bank.
Procedures Involved in the System
As a merchant, it is helpful to know the process through money moves from the consumers to the business. The payment process occurs in two stages: authorization and settlement. In the first stage, the customer makes payment of purchase through a debit or credit card and the data is encrypted via an issuing bank that approves the process. If accepted, the merchant bank is informed to credit the merchant’s account. In the second stage, settlement, funds deposited by the customer are sent to the account which can then be withdrawn.
Pricing of the Gateway Payment
With the payment gateway process involving several players, every merchant is expected to pay different fees including interchange, markup, assessment, and processing fees. Since these fees are usually bundled together, it may be challenging to figure out how much each service costs. These costs, however, vary from one Payment Company to another.
Gateway payments have improved the performance of businesses since merchants and customers can make their transactions with ease. The payment approach not only attracts more consumers to businesses but also increases efficiency and convenience. BlueSnap plays a significant role in e-commerce as it offers gateway payment that promotes efficiency among small and large companies across the world.