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Small Business: What Payment Processors, Shopping Carts?

What type of shopping cart / payment processor a business should implement? The answer is not quite so simple and in this article, and I’ve outlines the processes and technologies that go together to deliver a payment and affiliate solution and offer some choices.

Payment Processors

A payment processor is ‘the thing’ that sits between your website (typically a shopping cart) and your banks internet gateway into your account. It’s the bit that does the ‘heavy lifiting’ for credit card processing.

Payment processors include, but aren’t limited to: Authorize.net, 2CO, Securepay, EWay and PayPal.

PayPal does fall into this group, although it works a bit differently to the others.

Most of these processors offer an interface that we can code directly to and hook websites up to. This will eliminate the need for a shopping cart but, in my opinion, you are seriously better off considering a shopping cart to make your life easier.

Shopping Carts

This is the piece of software that controls your products, how much you charge for them, the description of the products, any sales discounts, postage / freight, coupon codes etc.

There are lots of shopping carts around, some are good, some are mediocre and others are just awful to use. Not all shopping carts support all payment processors nor do they interface with all software that will run on your site. Point in case, the integration with Wishlist Member between Shopping Carts can be limited.

Typically, there are two styles of shopping cart – hosted and self hosted.

1 Shopping Cart is a hosted shopping cart – someone else hosts the software, does all the system admin etc. You get an account on it and list your products.

Self hosted solutions include OS-ECommerce, Zen Cart, WP-E-Shop and WP-E-Commerce.

The beauty of having a shopping cart is that you can generally have a combination of payment processors and offer more choice to your customers and it is much, much easier managing a catalogue of products rather than individual payment buttons for products.

PayPal Only

Many small online business owners start off this way – create a PayPal account, generate the payment button, paste it into the website and away they go. It’s a good way to start if you have a small number of products, however trying to manage multiple products this way can be time consuming, confusing and problematic.

PayPal will do recurring and one off payments – the money is placed into your PayPal account and you can transfer it to your bank account.

What should you choose?

I think the question is – what do you need / want and what can you support yourself?

Hosted shopping cart solutions will generally cost you a monthly fee – there is a cost to maintaining the service. For that monthly fee, most of the headaches disappear. The downside – a prime part of your business is in someone elses hands – be very, very certain that your dealing with someone reputable.

Self Hosted shopping cart solutions will have a higher start up cost – you have to install and customize the solution however, ongoing costs are typcially much, much lower. Most of the solutions I’ve seen just seem to run once they’re installed and may, or may not, require software updates or upgrades. I strongly suggest you have a techie type on your team that you can call on when issues arise.

Things To Consider In Choosing A Payment Processor

People today shop or pays transactions online. They are using e-currency payment system to do their payments. For businessmen, this is advantageous. A businessman can accept payments for products and services rendered from their customers easy and fast. Choosing a partner in business is risky that’s why there are several things to consider.

Payment methods are evolving. Electronically initiated debits and credits has become the dominant payment mode. E – Commerce has formed a state of the art infrastructure in the operation of e-payment system through the creation of e – currencies issued by different private companies. There are different types of e-currency and processing technologies today.

Merchants and corporation must be wise in choosing the right payment system for their businesses. These are just some tips that a businessman needs to consider in choosing an online payment system for their businesses:

Security must be the first thing you have to consider in choosing a payment processor. Why? You have to choose a secured payment processor for your business transactions. No businessman wants to have fraudulent payers around them. Choose one that threads layers of security within their e-currency system.

Each have different range in their transaction fees. That’s why people always want the cheapest but with competitive quality. You can gain more customers by partnering with a payment portal that has low transaction fees and at the same time offers premier services. Quality service!

Nobody wants a delayed payment and transactions? You must settle your transactions using a payment processor that offers a friendly user system. Others have complicated interface and commands which needs further knowledge in computer and financing fundamentals, this consumes a lot of time. It is wise to choose a payment portal that can process single or batch payments automatically in seconds. The faster the better!

Would you leave fate on it? You must make sure that the future of your business will last a lifetime. Every businessman with proper planning and systematized implementation has better future ahead of them. Choosing a payment processor that is stable and has good reputation will be the key to success.

Legality of the company is a must! You will never excel in an industry if you abide the law, everything should be done with just and order. Never select one that does not follow the International Money Transfer Laws and International Money Laundering Abatement and Financial Anti-Terrorism Act.

PayPal for Web Hosting Companies As Payment Processor

You would often find that the hosting companies provide various payment options for their customers. You can pay with your credit card or with a check or take the help of PayPal. But if your web hosting company is not providing you with the option of paying through PayPal then you should never go for that host. This is because PayPal is always regarded as the best option for paying your hosting company. There are various reasons why it is thought as the best.

Firstly, with PayPal you can create subscription services for your web hosting account and user can easily view the subscription details from their own PayPal accounts. It is also easier to cancel the subscription services too. This means that you don’t have to waste time every month in making your hosting account payments because the active subscriptions would automatically debit the payment from your PayPal account.

The next reason for which PayPal has become the payment processor for the web hosting companies is that when a customer pays for the web hosting services through the credit card then there are extra risks involved too. It might happen that some hosts can charge their customers at a time for their 3 years services and after that fail to provide quality services to their customers. While in case of credit cards the payments cannot be returned back easily but in case of PayPal you can easily file a resolution claim and if its accepted the payment would be returned back to your account.

Some hosting companies have auto charging option and that happens without giving any prior notification to the users and this is often a common problem with many web hosting companies. Hence the subscriptions would notify you every month and make you alerted if any funds are debited from your account and you can easily cancel the same anytime by logging into your account.

Another reason for which PayPal is regarded as the ideal payment processor for the web hosting companies is that those hosting companies that use PayPal as the payment processor are rated with extra point in the web hosting reviews. Also many users prefer to use the PayPal as the payment option as they are comfortable with that as it is easy to pay with a single click. Thus you would find that PayPal is the ideal payment processor for the best hosting service provider companies.