In the modern American marketplace, the way customers pay has changed dramatically. Cash is no longer king; in fact, cash transactions in 2021 accounted for just 20% of all payments, a significant drop from 31% only four years prior. For any growing business, the ability to get paid by credit card is no longer a luxury—it is a baseline expectation.
At Great West Pay, we understand that navigating the world of payment processing can feel overwhelming. Whether you are launching a new e-commerce site or moving a brick-and-mortar shop online, this guide will walk you through the essentials of online payment processing and how to choose a solution that scales with your ambition.
Why Your Payment Solution is a Growth Engine
Accepting credit card payments does more than just facilitate a transaction; it transforms your customer experience. Research shows that 91% of consumers say a satisfying checkout experience directly influences their decision to shop with a merchant again. Furthermore, customers are often willing to spend significantly more when using a credit card compared to other payment forms.
By implementing a streamlined system through Great West Pay, you can:
- Increase Sales: Catering to the 89% of customers who use digital wallets and those who prefer the convenience of plastic.
- Boost Credibility: Professional payment interfaces instill trust and make your business appear more established.
- Improve Security: Modern systems minimize the risks associated with handling physical cash and offer advanced fraud detection.
The Core Components of Online Payments
To get paid by credit card through your website, you need three interconnected pieces of technology working in harmony:
- The Digital Storefront: This is your website or online shop where customers browse products and initiate a purchase.
- The Payment Gateway: Think of this as the digital version of a physical card reader. It is the interface where customers securely input their card details.
- The Payment Processor: This entity acts as the “messenger,” collecting the payment data and communicating with credit card networks and banks to transfer funds into your account.
Most businesses also require a merchant account. Unlike a standard business bank account, a merchant account is a specialized service specifically designed to handle electronic payment processing.
Step-by-Step: Setting Up to Accept Online Payments
Setting up your online payment infrastructure is a straightforward process if you follow these key steps:
1. Establish Your Business Entity
Before applying for a merchant account, you must register your business as a legal entity, such as an LLC or a corporation. This provides essential legal liability protection for your personal assets and is generally a requirement for securing a professional processing agreement.
2. Open a Business Bank Account
You will need a dedicated bank account in your business name. This is where Great West Pay will deposit your funds once they have been processed and settled.
3. Choose a Partner Who Understands Your Industry
Not all payment processors are created equal. You want a provider that offers end-to-end business management. A modern solution should act as a “mission control” for your business, offering integrations that help with inventory management, demand forecasting, and even employee productivity tracking.
Navigating Security and PCI Compliance
Data safety is the top concern for modern consumers. If you accept card payments, you must adhere to the Payment Card Industry Data Security Standard (PCI DSS). This is a comprehensive set of security requirements designed to ensure that all companies maintain a secure environment for cardholder data.
For many small businesses, this involves completing a Self-Assessment Questionnaire (SAQ) and undergoing quarterly network vulnerability scans conducted by an approved vendor. At Great West Pay, we prioritize these security layers, including tokenization and encryption, to ensure that your transactions remain safe and your business avoids the heavy financial penalties associated with non-compliance.
Managing Risks: The Reality of Chargebacks
One of the most frustrating aspects of online commerce is the chargeback—a reversal of funds initiated by a customer’s bank after a dispute. Interestingly, up to 86% of all chargebacks are considered “friendly fraud,” where customers circumvent the standard return process to get their money back.
To protect your revenue, follow these best practices:
- Maintain Clear Policies: Post your return and refund policies prominently on your website and receipts.
- Be Accessible: Many customers only initiate chargebacks after failing to get in touch with the business. Ensure your customer service team is easy to reach.
- Detailed Descriptions: Ensure your product descriptions and photos are true-to-life to avoid disputes regarding quality or accuracy.
The Great West Pay Difference
Choosing Great West Pay means more than just having a way to get paid by credit card. It means gaining a partner dedicated to your long-term success. Our solutions are designed to be flexible, evolving with your business as you grow from a local startup to a national presence.
We offer transparent pricing models and dedicated expert support, ensuring you never have to navigate a technical hurdle alone. By streamlining your operations and elevating your customer experience, we help you focus on what matters most: building your business.
