If you sell anything online, you need a payment processing solution. There are plenty of companies out there offering payment processing services targeted at small businesses, but it can be difficult to determine which option is right for you. Small business owners need to ensure that their payment processing solution allows them to securely and efficiently process customer payments online. You can’t accept cash in e-commerce, so this solution is crucial to the success of your business.
What is a payment processing service?
Payment processors are third parties that handle transactions for your business. These transactions can be in the form of credit or debit purchases, money wiring, or bank transfers. Whenever a customer enters their credit card information to make a payment, the payment processor will handle encryption, routing information, and ensuring the payment reaches your account.
Who are the top providers for payment processing services?
While there are countless options for payment processing services, a few companies have made a name for themselves in the industry. They are frequently rated highly for their customer service, solutions, and pricing.
Square offers both e-commerce services and point-of-sale payment processing solutions. As a giant in the payment processing space, Square serves millions of customers every day. Their transaction rates are relatively low at 2.6% + $0.30 per transaction with paid plans. You can also integrate Square into your current site with convenient Square APIs.
This payment processor also allows users to create a free online store to build and manage an e-commerce site. If you do not already have your own website, you can build a Square Online Store. Square will help you maintain your order fulfillment, shipping, and sales tax information all in one convenient place.
You will also receive fraud protection features and the ability to make deposits on demand that hit your bank account within one to two business days. Monthly fees are not required because you only pay per transaction, which means you only pay Square when you get paid. You can process both credit cards and gift cards through Square.
Stripe serves both the technical novice and the experienced developer. The flexible payment processor was designed to be used by developers for custom payment solutions. However, the basic form is also available, so you can get up and running quickly. Stripe serves millions of businesses and processes billions of dollars annually.
You can use Stripe whether you sell individual products and services or subscription plans. Stripe offers both regular invoicing for one-time payments as well as recurring billing plans for subscription models. You can integrate Stripe into your existing website or mobile app or use the API building blocks to create a customized solution.
Payment fees start at 2.9% + $0.30 per transaction. Fraud protection and security are included with Stripe, and you only pay for successful card charges. Your finances are reported in real-time for convenient monitoring of your business at all times.
PayPal has been a leader in payment processing for many years, and their business solutions are top-notch. Millions of consumers around the world already have a PayPal account and use it to shop online. You can set up your PayPal business account in just minutes and start accepting online payments.
You do not have to accept only PayPal transactions. Using PayPal as your payment processor allows you to accept credit card and debit card payments whether a customer has a PayPal account or not. This processor offers fast checkout speeds that can help boost sales.
Payment fees for PayPal are competitive at 2.9% + $0.30 per US transaction. The checkout experience has been optimized across devices, and it can be customized for your business. Fraud protection, live support, and shopping cart compatibility are all included with PayPal.
When starting your own small business, it is important to consider every aspect of your checkout process. Selecting the right payment processing provider can ensure your customers have an easy checkout experience to optimize your sales. Accepting payments online is a key component of any business, and this decision should not be taken lightly.