Top Tips to Burst Payment Myths
Online payments are the mainstay of e-commerce. Without an efficient online payment system, the growth of any e-commerce business would be greatly compromised. While designing an online payment system for a business, it is important to not only offer a wide range of platforms, but also to ensure that such platforms are robust and secure. Since most of the e-commerce businesses operate across borders, it is also important that such transactions are legally allowed as per the rules and regulations of the concerned countries. Following are the top tips which let you design an optimal payment system for your e-business.
- Low Upfront Costs: While online payment platforms are essential for any online business, these are also expensive to operate. While deciding upon the platforms and methods to be used, proper attention should be paid to the associated costs.
Generally, these costs are upfront costs and running costs. Apart from the one-time setup fee, these platforms charge a certain percentage of transaction amount as their operating fee. Therefore, it is important that both these costs are taken into cognizance while deciding upon the platforms to be used. Don’t fall into the trap where some online payment service providers offer low upfront costs. It is highly likely that the associated operating costs will be on the higher side.
- Supporting Features: Another myth associated with online payment systems is that they are only required to have the ability to accept payments. However, in an ecommerce business, the online payment system is expected to perform many more activities such as accounting for refunds and cashbacks. Such transactions are commonplace in an online business and therefore, the payment platform should be equipped to undertake such operations. While deciding about a service provider, it should be thoroughly checked that they are ready to provide such supporting functions.
- Scalability: While most of the service providers offer the ability to scale up the payment system as and when your business grows, it is imperative that you fully check the extent of the scalability provided. Generally, such offers are saddled with fine prints and hidden clauses which come with additional contracts, higher fees, and other costs. You need to ensure that such elevated costs come with corresponding benefits in terms of scalability. Further, it should also be verified that the scaled operations will provide the same level of efficiency and robustness as the original plan.
- Security: Online payment systems are still considered to be unsafe, which negatively affects their acceptance by the customers. In order to ensure that your customers feel safe while carrying out transactions, it is vital that you fully understand the safety features provided by your online payment platform. Apart from vetting the existing safety measures, you should also look at the service provider’s ability to offer safeguards against potential threats. Online businesses face new security threats on a daily business, making it imperative that the online payments service providers are ready to face not only existing threats but also the future ones. Installing a robust payment system will help in alleviating customers’ concerns about the safety of their money and personal information.
- Flexibility: Another myth related to online payment systems is their rigidity. In order to keep the systems secure, it is generally believed that such systems are difficult to change and customize. However, this is not true as most of the top online payment service providers offer customizations to meet different requirements. Some of the top customizations are related to the acceptance of different currencies and diverse credit cards and debit cards. It is also a good idea to see whether your service provider is future ready to deal with upcoming technologies such as cryptocurrencies, which have the potential to become a major part of payment systems.
While deciding on an online payment system for your e-business, it is important that you take time to separate facts from fiction. There are several myths related to online payment systems and these misconceptions can negatively impact your decision-making process. In order to ensure that you set up the most optimal payment system for your business, you should keep the above-mentioned points in mind.