Online shopping is already an integral part of our lives. So no matter whether you are experienced retailer or you’re just setting your online store, there are a few things you have to consider. Although it’s often underestimated, the payment strategy is one of the most important decisions. The whole process has to satisfy the client’s needs and give them a sense of security. Otherwise, all your efforts put into building the perfect online store will be just a waste of time. To help you, I’ve compiled this list of ten things you need to know about eCommerce payments.
1. Payment Getaway vs. Virtual POS
A payment gateway is an eCommerce service provider that processes the payments and transfers the funds into a merchant account. The basic gateway method is using a card payment. This requires client putting their card number, expiration date, and CVV. A good Payment Gateway provides a good documentation, doesn’t charge a lot per transaction, and gives you the needed account managing tools.
However, many customers are not happy with this kind of payment, as they don’t feel comfortable leaving their credit information everywhere. Using a virtual POS is one of the best options in this case. It includes also a card payment, but the process is operated only by the merchant and the customer isn’t required to input personal information. To protect yourself you need to activate a secure payment system that requires the clients certify that they are making the purchase. This is the best option both for the buyer and the seller.
2. Merchant of Record
Securing a merchant of record should be at the top of your ‘must’ list. This means you have to secure a liable organization for every transaction. This includes dealing with the risks and frauds that come along with the eCommerce business. The Merchant of Record is especially important as your business grows because then there is a bigger risk of loss.
3. Third-party Payment Methods
Third party processors like PayPal ease the payment process as they don’t require a dedicated merchant account. This means they accept payments on behalf of different eCommerce merchants. These external payment methods are not the best option, but you should offer them as an option. Customers often turn to them because the security and affordability they offer.
4. Allow Payments without Requiring an Account
Requiring customers to sign up for an account in order to pay can be a major conversion killer. Users immediately assume that they need to sign up so that they can be flooded with promotional emails later. Also, it prolongs the process unnecessarily which annoys customers. Instead of forcing them, it’s best to give them the opportunity to sign up when the payment is completed.
SSL is an integral part of your eCommerce payments as it establishes a secure connection between the customer and your website. This certificate intercepts the customer data if it’s used across the network. SSL adds another layer of security and makes your customers feel more comfortable sharing their information with you. Don’t forget to display your SSL badge.
6. Don’t Redirect Your Customers
People like to relate to your brand. So, when you redirect them to another checkout page it seems like they are giving money away to another. This may result in customers losing trust and abandoning their cart. In a long run, they will also receive emails from the payment provider, so you’ll be disabled to create a personalized communication with the clients.
7. One-page Checkout
Multiple-page checkout tends to drive customers away. That’s why the one-page checkout layout should be your holy grail. People don’t want to be bothered scrolling infinitely or answer long questionnaires. Instead, you can put all questions on one page. Make sure you require only the necessary information. Moreover, a one-page checkout gives customers an insight how far along are they in the process, which works as a psychological boost and motivation for them to finish it.
8. Paying in Domestic Currency
People feel more comfortable and well informed when they pay in their own currency. Check whether your getaway supports international transactions and provide choices of payment currency for your customers. This will provide a smoother shopping experience for your them which may eventually result in higher sales. What you definitely shouldn’t do is list items in their local currency and make them pay in yours. This will surely drive them away.
9. Remove Surcharges
A surcharge is a fee that is added to the cost of the product. It’s often not included in the price stated initially. Surcharges tend to be major barriers for customers completing the payment. If you need to charge additional fees, consider putting the rates into the cost of the product so that the clients are not taken by surprise.
10. Google Analytics
It’s important to track your success and to gain insights into where visitors are coming from and how did they found you. More importantly, you can discover which payment method is working and which makes your clients bounce. It’s important to determine which one ultimately leads to a higher conversion rate.
Don’t make a rookie mistake! Check this list when you’re thinking of the best payment strategy for your online store and ever overlook the importance of the eCommerce payment for your business’ success.