Understanding payment processing, merchant services can be very daunting to any business owner. Add in an eCommerce platform to the mix, and you have a mix of technologies that while necessary, can cause confusion or unanswered questions. We know that there are an abundance of different payment processing services, and merchant services providers to choose from. Finding the best fit for your business can seem like a crap shoot. With different rates, you could spend hours, if not days comparing and contrasting the benefits of each one.
Fortunately for you, we’ve done some of the heavy lifting for you!
In this post, we will go through everything you need to know about payment processors, payment gateways, and how to integrate payment services into your Magento store.
Let’s dive in!
When it comes to finding the right payment processor, you certainly have no shortage of options. Many payment processors claim to offer the lowest rates. An average processing rate should be between 1.5-3.5% per transaction according to Bankrate. If you are in the market for a new payment processor, it’s important to ask what their rates are prior to signing a contract. This can ensure you’re not only getting a fair rate, but that you’re also not losing money over-spending on processing fees.
On the flip side, if you’re not sure what your current processing rates are, you can find this information on your monthly merchant statement. No matter if you choose to stay with your current processor, or move on, it’s important to ensure that whichever credit card processor you choose to process your transactions is PCI compliant. Your payment processing on your site also needs to be reliable, and has the necessary security for your customers’ data.
While having a reliable payment processor is great, you will then need a payment gateway to start accepting payments for your products online.
In short, a payment gateway is the virtual version of a physical credit card terminal. A payment gateway works by taking your customers’ payment details and encrypting the information via the gateway. This information is always encrypted to safeguard your customers’ data, and to prevent cybercriminals from accessing it. Your payment processor will then notify the card-issuing bank if the transaction is approved or declined. If the transaction is successful, the funds will be deducted from your customers’ account, and settled into your merchant bank account. You then have the option to upload transactions as they come in, or in batches at the close of business.
Now that you have your payment processor, and payment gateway, it’s time to integrate everything into your Magento store.
Integrating your payment gateway into your Magento store is relatively simple. You can do this in four easy steps:
Once your payment gateway has been integrated with your Magento store, we strongly recommend running a test transaction to ensure that everything is functioning properly. Once the transaction goes through, you’ll be well on your way to accepting payments online!
Making sure your website is PCI compliant is an absolute must. In short, PCI compliance means that your business processes, stores, and transmits credit card information in a secure environment. Failing to maintain your PCI compliance can mean your business is open to fraud losses, loss of customer confidence, and worst, termination of your merchant account. Your payment processor will work with you and send you reminders about maintaining PCI compliance. Most businesses fall into level 4 or level 3 PCI compliance which means they process between 20,000 and 1 million transactions each year. Typically, you will be paying between $60-$100 each month to stay PCI compliant. In the grand scheme of running your business, it’s not too much of an investment to ensure your eCommerce site is secure.
Have you been wondering if you can integrate PayPal, Apple and Google pay to your Magento store?
You can with the Braintree Payments extension from PayPal.
Just like any other extension, you can simply download and install the extension, enter in your login information, and tie your Magento store to these payment options. It really is that simple! Once this is integrated, your customers can make payments in the way that is most-convenient for them.
Having a one-click checkout for your customers is a fantastic way to bolster your users’ experience. These days, consumers expect a painless and fast checkout process. And if your eCommerce site doesn’t deliver that, your checkout (and cart) abandonment rates will soar. Using an integration, like Bolt, allows your users to save their shipping information, and payment methods to check out with just one click. While using one-click checkout may not be a necessity for your business now, it is definitely something to consider for the future, as this is becoming increasingly common.
Finding the right payment processor for your Magento site is one of the many keys to your business’ success, along with making sure they are PCI compliant, and making sure they can be integrated into your Magento eCommerce store. If you’re not sure where to turn, 121eCommerce is here to help!
We’ve helped over 300 merchants launch new, user-friendly eCommerce sites since 2014, and helped our first eight clients grow their business to 8 figures. We would be happy to do the same for you!