What is eCommerce? The process of buying items online, through a website, is known as eCommerce. Most people are familiar with buying items online. A buyer will simply click on an item, add it to their basket and make their payment. Paying for items online is also simple. The buyer will be required to fill in details of their debit or credit card and click on a payment option that suits them. While the entire process of buying is very simple and straightforward, that one of selling items online is another matter altogether. Here are some of the ways of selling online.
Choose Your Payment Getaway
One of the most important things which a seller needs to consider is their payment getaway. A payment getaway is a way of extracting a customer’s card details and then processing it at a bank. There are two ways of going about the process. One entails using a third party who will do the processing on behalf of the seller. The second one entails using a merchant account. A merchant account, unlike using a third party processor, is managed solely by the seller. A seller should choose a payment getaway that is both easy and convenient to use.
Why Third Party Processors?
A third payment processor normally has a merchant account which he or she allows the seller to use. One good example of a third party processor is PayPal. PayPal, like other third party payment processors, work in a similar manner to aid both the buyer and the seller. PayPal, for instance, collects money from the buyer and at the same time collects the money on behalf of the seller.
Why a Merchant Account?
A merchant account on the other hand allows the seller to receive the payments made into their account directly. This, in essence, eliminates the need for another party to process the payment. The transactions are similar to taking card payments and entering the details in a card machine.
Which One is Suitable for you?
For a seller who is starting up, it may be difficult to use their own account. This is because, in order to use a personal bank account to receive payment from customers, one needs to have an Internet Merchant Account (IMA). This type of account is not always given to just anyone. Normally, they are given to sole traders or businesses. Furthermore, one has to be scrutinized in terms of their business’s history. Third party processors are therefore useful to start-ups because they require less commitment. They also do not require that one provides their credit history before they accept and send payment.
Do You Need a Third Party to Handle Credit Information?
For those who decide to use their own merchant account, there is always a second decision to make. This is whether they will accept credit card information on their site or whether this will be done by a third party. A seller who decides to take credit card information on their personal site attracts more responsibility. Using a third party takes away this responsibility as they will shoulder all the security issues that come with operating such a system. It will also save money and time.
Hence , you can look upto the information above to make your ecommerce website development business effective and impactful.