How to set up online payments
Wondering how to set up online payments for your business? E-commerce is a huge part of today's economy with the majority of these businesses operating an online store and receiving payments online.
How to set up online payments for your business
Customers expect to find various payment methods when they reach the checkout page of an e-commerce store, so they can choose the method that suits them best. Online payments are done via credit or debit cards, eWallets, direct debits, prepaid vouchers, and bank-to-bank transfers. Even though paying online is an easy and straightforward task for the customer, there are a lot of functions required to make online payments available in a merchant's store.
Who is involved in setting up online payments
If you have an e-commerce store and you want to learn how to set up online payments, this article will guide you on the actions required from your end. The major step to set up online payments for your business involves partnering with a reputable and licensed acquiring bank.
The role of an acquiring bank is to process credit or debit card transactions while communicating those transactions to the issuing banks via their gateway through a payment processor. An acquirer will supply the merchant with a gateway supporting the required tools and technology to facilitate online payments on their online store and get paid from customers around the globe.
The technical aspects involved in setting up online payments
From a technical perspective, a merchant will integrate their online shopping cart to a payment gateway, either with hosted or direct integration. A hosted integration is an integration method whereby the merchant hosts a payment page on their site with the use of an iframe. This way, merchants can focus on their core business while the coding and security of the payment gateway and payment page are handled by the acquiring bank’s gateway.
In the case of the direct integration method, although the merchant has more flexibility in the way they connect their payment page to the payment gateway, the merchant has greater responsibilities in terms of ensuring the security of the credit card payment data handled and stored. Therefore, this integration method requires PCI DSS Level 1 certification from the merchant’s end. If your store is operating on an e- commerce platform, you can look for a payment provider through the platform’s plugins page. For instance, you can integrate with
Powercash21’s PCI DSS Level 1 certified payment gateway through WooCommerce, an open-source shopping-cart plugin for e-commerce merchants who have their websites featured on the WordPress platform. Merchants who wish to accept payments online should start by establishing a merchant account, before any technical integration can occur. The merchant account is an agreement between the merchant, the bank and the payment processor who will process and settle the card payments. In this agreement, the terms of processing payments are agreed upon, including:
- The cost for processing the transactions, such as the Merchant Discount Rate (MDR), transaction costs, settlement costs and frequency,
- The security parameters set on the merchant account such as a security deposit or rolling reserve with the acquiring bank.
E-commerce merchants can work with a Payment Service Provider, a licensed payments institution, or directly with an acquiring bank in order to obtain a merchant account for their business.
Security of Payment gateway services for online payments
Secure payment processing is a crucial part of every business. With numerous payment providers available, merchants might find it difficult to decide which one will best cover their payment needs. However, there are certain things that merchants should look for when choosing a payment processing company such as:
- the diversity of payment solutions offered
- data security certifications
- risk management tools
- fraud prevention features supported by the gateway
- The reporting system available for reconciliations of transactions.
Apart from the various tools that a payment processor has to offer, it’s vital that they hold a Payment Card Industry Security Standards certification to prove that the processing of payments and cardholder data handling is done in a highly secure environment.
For example, Powercash21’s proprietary payment gateway is PCI DSS Level 1 certified which means that merchants can benefit from the highest level of security when it comes to the processing, storing and transmission of cardholder data.
Tokenization is another way in which security of data is ensured by the gateway during payment processing. Through tokenization, the payment gateway basically replaces sensitive data, like credit card or bank account details, with an alphanumeric token to avoid storing sensitive information on the merchant’s servers. This security feature is designed to minimize card fraud by ensuring that the cardholder information will not be accessed by hackers.
Secure online payments with Powercash21
Powercash21 is a European-regulated payment institution offering bespoke payment solutions to e- commerce merchants in a variety of verticals. Merchants can set up online payments for their online store with simple integration to our highly secure payment gateway. Apply with Powercash21 today and expand your business in local markets with more than a 100+ local payment solutions!