Though I nearly always recommend starting out on eBay and then progressing to Amazon, the last piece of the online business puzzle is starting your own eCommerce store!
I’m not going to go into too much detail now as I’ve written about this in a separate blog post (eBay, Amazon or an Online Shop?) but to put it simply – eCommerce is the holy grail and the potential is MUCH larger than if selling solely on other 3rd party platforms, like eBay and Amazon.
But of course with bigger potential comes more complications and decisions and one of the first questions that people face when creating their own ecommerce store is what payment processor to use? After all, you can’t leave it to Amazon to handle that or simply take PayPal and be done with it.
So that’s what today’s article is all about – a guide on which payment processor to use for your online eCommerce store.
Let’s get to it!
When choosing a payment processor, there are a few important things you have to bear in mind and they are:
This really goes without saying, but the payment processor you choose has to be compatible with the shopping cart that your eCommerce store is built on.
The shopping cart is the more integral part of your store that will affect everything else so I’d always suggest choosing that first and then finding a payment processor option that fits, not the other way around!
As with everything, the cost is a big consideration, both in terms of any up-front charges and then ongoing costs – which can include a monthly “subscription” fee as well as a per transaction charge (similar to the 3.4% PayPal charge on eBay).
Quality of Service
Again, this goes without saying, but nowhere is the standard and quality of service provided more important than here. After all, this is your customers’ money and entire business livelihood at stake!
Plus another aspect that I always place a lot of importance on is the quality and speed of customer support. It’s no use at all having a terrific service at an amazing price if when something goes wrong (as it invariably will) there is no way to get any help.
Speaking of problems occuring, another hugely important factor when comparing different providers is how they protect you from and prevent:
For some high-risk niches this is actually the single most important aspect to consider and you need to choose a payment processor that has systems in place to protect you from fraudulent chargebacks. As I said, this should be a consideration for everyone but in some niches it’s even more important (such as when selling game codes, gift cards and other such digital goods). [Read more…]