Besides the obvious, what makes an eCommerce purchase different from a transaction made in a brick-and-mortar location? It’s as simple as this, in an online purchase, also called a card-not-present transaction, a merchant has no idea who is entering the credit card information to complete a purchase. During a transaction made face-to-face, there are opportunities to verify the buyer’s identity who hands over, swipes, or taps their card. By just asking for a driver’s license or other current photo ID, you can stop most credit card thieves in their tracks. Due to Covid-19, the consumer landscape has changed dramatically, with many businesses moving online for the first time. According to the Federal Trade Commission, that means that the risk of identity theft is on the rise. In 2020, the FTC received reports of 1.4 million cases of identity theft. That’s double the number from 2019!
Reversing the damage caused by identity theft takes time but is usually accomplished in a few relatively easy steps. Close the credit card, strengthen your passwords, and then, usually within ten days, the issuing bank reverses the charges. In a chargeback process, the consumer reports the fraud to the bank, and the bank refunds the charges. The money is returned to the buyer, but the seller is left holding the bag, an empty bag. With a chargeback, you lose not only the money from the sale, but after shipping, you’ve also lost the merchandise.
With chargebacks and other types of fraud as a concern, it’s more important than ever to select a payment processing partner that will protect your bank account, credit card, line of credit, and your bottom line. There are dozens to choose from, so how do you find the best eCommerce merchant services for your business?
How do You Find the Best Ecommerce Merchant Services?
Here are a few things to consider:
What kind of fraud protection do they offer?
For card-not-present transactions, requesting a card verification value, or CVV, at checkout is one easy way to guard against credit card fraud. This three or four-digit code, found on the back of the credit card, is proof that the customer actually holds the physical card.
Do they charge for keeping your business PCI compliant?
Payment Card Industry Data Security Standard, or PCI DDS, is a set of standards established by the world’s largest credit card companies to protect consumers and merchants from fraud and data security breaches. Any merchant accepting credit card payments must comply with PCI standards, and keeping them compliant is the responsibility of a payment processing provider. Some providers charge monthly or annual fees for that help and often don’t disclose the amounts. Make sure you know what you’re paying for upfront.
What are their fee structures and contract terms?
Payment processing providers use one of four models to determine their pricing:
Interchange Plus: The merchant is charged the interchange rate determined by credit card companies like Visa, Mastercard, and American Express, plus the processor’s markup.
Flat Rates: Merchants are charged the same flat rate for every transaction, regardless of the amount. The flat-rate model works best if you’re not processing a high volume of transactions.
Membership Fees: The provider charges a monthly membership fee, and the merchant can pay the wholesale interchange rate without markup. Stores with higher volumes benefit the most from this structure.
Tiered Pricing: With tiered pricing, the provider separates your credit card transactions into one of three purposely vague tiers: qualified, mid-qualified, and non-qualified. Qualified purchases are charged the lowest rates, while non-qualified transactions are charged the highest. The problem with this is the provider can arbitrarily determine what is and isn’t a qualified purchase.
In addition to understanding your provider’s fee structure, you will need to ask questions about your contract terms. Specifically, you need to know what the provider’s policy is on early termination fees. These details are often sketchy, and with tighter and tighter margins, you don’t need any surprises.
Having a merchant account that seamlessly integrates with your existing eCommerce shopping cart can save time, frustration and minimize costly mistakes. If you already have a solution, ensure that the provider can seamlessly integrate with your existing eCommerce platform. Make sure to ask if they provide assistance with the setup and what help is available after the setup is complete.
If you don’t currently have a shopping cart, there is a dizzying array to choose from; Square, Shopify, WooCommerce, and Magento consistently turn up on tech reviewers’ best-of lists. Spend some time and research rates, ratings, and reliability.
What are other merchants saying about customer service?
Check the provider’s reviews and Better Business Bureau rating. You want to know what happens after the contract is signed. Are there complaints about hidden fees, unreliable technology, security failures, or slow response times? Ask the provider if there are other merchants who use their service that you can call for a gut check.
What do You Need to Set Up an Account?
Merchant application requirements may vary, but be prepared to provide at least the following details:
- Type of business
- Physical address
- Business license
- Employer Identification Number (EIN)
- Proof of business bank account
- Articles of incorporation
- Bank statements (for existing businesses)
- Credit history for the business owner(s)
- Projected monthly processing volume
- Average ticket sale
Here’s Why You Should Choose Payline:
For the best eCommerce merchant services, with guaranteed transparent, interchange-plus pricing and a dedicated customer representative, Payline customers know exactly what to expect when it comes to their monthly costs. In business, relationships matter. Your payment expert will stay with you through the duration of your contract, ensuring consistent service and support from someone who understands you, your business, and your customers. Talk to a payment expert now for detailed information about services and benefits.
What Payline Offers:
Payline offers everything you need to take care of all your eCommerce merchant services:
- Complete, user-friendly POS Systems
- Security that reduces chargebacks and keeps your customers’ data safe
- Simple, transparent pricing with no long-term contracts
- A dedicated account manager committed to your business
- Seamless Integration with over 200 existing shopping cart solutions
- Your Software, Our Hardware
- A virtual terminal and reporting dashboard that syncs in real-time.
- Included in our suite of tools are various retail POS systems that connect your products and schedule on the frontend and your accounting software on the backend.
- Regardless of the size of your business, our devices allow you to own the client experience while taking care of PCI compliance, updates, and support.
Payline Pricing
Payline offers the lowest prices with easy-to-understand interchange-plus plans. We pass on the wholesale cost from the card issuer and then add on a small fee that we disclose upfront.
Swiping in-person costs 0.2% plus 10 cents and a monthly flat fee of $10. The credit card not present or online purchase costs 0.4% plus 20 cents and a monthly fee of $20.
Your first month with Payline is FREE with no risk, no upfront fees, and no cancelation fees. No hidden fees, no contract double-speak, and no surprises! Click here to calculate what you’ll pay using our payment calculator.
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