One of the most important decisions that you have to make when running an ecommerce store is to find an appropriate payment processor. Ecommerce payment processing is important for businesses that want to grow because it allows you to take payments from customers online and have them transferred to your own accounts. Opening an ecommerce store is a pretty exciting time for entrepreneurs, but you also have to be very careful. Most entrepreneurs don’t know much about ecommerce payment processing, but they do understand the importance of taking payments from their customers. In this guide, we will teach you everything you need to know about ecommerce payment processing so that you can make the right decision for your business!

What is an Ecommerce Payment Processor?

An ecommerce payment processor is a service that helps to complete online transactions. When a customer makes a purchase through an online store, the processor takes the information from the payment gateway and verifies that it is correct. If the customer has sufficient funds in their account, the processor will deposit the money into the merchant's account. This process allows businesses to accept payments electronically and helps to ensure that customers can make purchases quickly and easily. Payment processors are an essential part of running an online business, and they can help to increase sales and customer satisfaction.

What is a Merchant Account?

A merchant account is an account opened by your ecommerce store in a bank. This is the account where funds are going to be received after they have been processed. In order for you to start processing payments, you need to have a merchant account with a bank. When a customer buys something from your store, the money will go into your merchant account. From there, you can transfer the funds to your regular bank account. Merchant accounts typically come with higher fees than regular bank accounts, but they are essential for businesses that process credit and debit card payments. If you are planning on opening an online store, make sure to open a merchant account so that you can start processing payments right away.

What is a Payment Gateway?

If you have an ecommerce store, you'll need a payment gateway in order to accept payments from customers. A payment gateway is a middleman between your store and the payment processor, and it's responsible for relay information back and forth in an encrypted form. This ensures that sensitive information like credit card numbers stays secure throughout the transaction.

Payment gateways are an essential part of any ecommerce payment processing solution, so it's important to choose one that is compatible with your store and your processor. There are many different options out there, so it's worth doing some research to find one that will work best for your needs. Once you have a payment gateway set up, you'll be able to accept payments from customers quickly and easily.

Collecting Payment Information through Ecommerce Payment Gateways

Hosted Widgets. If you're running an ecommerce business, it's important to have a payment gateway that can collect your customers' payment information. And one of the best ways to do this is through a hosted widget. With a hosted widget, your checkout page can display information from an external source, making it easy for customers to provide their payment information. Plus, you can choose between an embedded iFrame component or a DIV component. With an embedded iFrame component, the content on your checkout page is hosted outside of BigCommerce and you can't customize the look and feel. However, with a DIV component, the content is hosted inside BigCommerce and can be dynamically generated by javascript. So if you're looking for an easy way to collect payment information, a hosted widget is a great option.

Hosted Fields. There are a few different ways to collect payment information from your customers when you're running an ecommerce business. One option is to use a hosted payment gateway, which allows you to keep your customer on your checkout page while providing an extra layer of security for their credit card information. With this option, the form fields are hosted outside of BigCommerce but displayed on the checkout page. The gateway tokenizes the shopper’s credit card information once it’s entered into the fields, and then the token is passed to the payment processor. This way BigCommerce doesn’t handle the raw credit card data. Another option is to use a third-party payment processor like PayPal or Stripe. With this option, you redirect your customer to the payment processor's site to enter their credit card information. Once the transaction is complete, they are redirected back to your site. Both options have their pros and cons, so it's important to weigh them carefully before deciding which one is right for your business.

Native Hosted Component. There are many different ways to collect payment information online, but one of the most secure methods is to use an ecommerce payment gateway. With this method, the customer remains on the page while the fields are rendered by the gateway. The gateway then uses a server-to-server API integration to connect with the PSP. This ensures that the data is securely transmitted and that the customer's information is never exposed. In addition, this method is also more user-friendly, as it eliminates the need for customers to enter their payment information into a third-party site. As a result, using an ecommerce payment gateway is a great way to keep your customers' information safe and to make your checkout process more seamless.

What is Tokenization and How does it Work?

Tokenization is a process of securing credit card details by replacing it with a random sequence of numbers called a “token.” This token can be used to process future payments without the need to re-enter the credit card information. Tokenization helps to reduce fraudulent activities as the actual credit card details are not stored on your ecommerce website.

In order to tokenize a credit card, you will need to have a payment gateway in place. The payment gateway will work with the credit card issuer to generate a unique token for each customer. When a customer makes a purchase, the token is passed through the payment gateway and is used to process the payment. The customer’s credit card information is never stored on your website or server.

Tokenization is an important part of ecommerce payment processing, and is a great way to keep your customers’ information safe. If you are not using tokenization, you should consider implementing it on your website as soon as possible.

How to Secure Your Website to be SSL and PCI Compliant

PCI compliance is a set of security standards that are designed to protect cardholder data. Any business that processes, stores or transmits credit card information must be PCI compliant. This includes ecommerce businesses, as well as brick-and-mortar businesses that accept credit cards. PCI compliance is required by credit card companies, and failure to comply can result in hefty fines.

There are two ways to become PCI compliant: self-assessment and registration with a PCI compliance provider. Self-assessment is the cheaper and easier option, but it does require you to have a good understanding of the PCI standards. Registration with a PCI compliance provider is more expensive, but it takes care of all the paperwork and documentation for you. Whichever route you choose, becoming PCI compliant is essential for any business that accepts credit cards.

In order to securely process payments, you need an SSL certificate. It doesn’t matter if your ecommerce credit card processor requires a SSL certificate or not, you still need one. You can get one for free if you are on the Cloudways platform, or you can buy one and install it on your website.

An SSL certificate helps build trust, and also improves conversions. In this day and  age, customers are becoming more and more concerned about the security of their personal information. If they see that your website is not secure, they are likely to leave and go to a competitor’s site.

What are Online Payment Methods for Consumers?

There are a variety of different payment methods available to consumers for online purchases. The most common and straightforward method is by credit card. Customers can also opt to use direct debit, which is the equivalent of paying in cash or by check. There are also alternative payment methods available, such as wallets, digital currency and buy-now-pay-later solutions. Each of these has its own advantages and disadvantages, so it's important to choose the right one for your needs. For example, wallets are convenient but may not be accepted by all merchants. Digital currency is still relatively new and may be subject to volatility. Buy-now-pay-later solutions can be helpful if you need to finance a purchase, but you'll need to make sure you can repay the amount in full and on time. Ultimately, the best payment method is the one that works best for you and your financial situation.

How Much are Fees for Ecommerce Payment Processing?

There are a few different types of fees that ecommerce businesses might be charged for payment processing. The most common is a percentage-based fee, which is a small percentage of the total transaction amount. There may also be a fixed fee per transaction, which is a set amount regardless of the transaction size. Some companies charge a monthly subscription fee instead of transaction fees, and there may also be additional fees for things like chargebacks, disputes and international payments. In general, it's important to compare the fees charged by different payment processors to make sure you're getting the best deal for your business.

Ecommerce Payment Processing Conclusion

As the world of ecommerce continues to evolve, so too does the landscape of payment processing. While there are a variety of options available to businesses today, the most important factor is finding a solution that is right for your specific needs. Whether you're looking for a low-cost solution or one that offers additional features and flexibility, there's sure to be a payment processor that's a perfect fit. With so many options on the market, it's important to do your research and understand the pros and cons of each before making a final decision. By taking the time to find the right ecommerce payment processor for your business, you can streamline your operations, reduce costs, and provide your customers with a seamless shopping experience.