E-commerce continues to rise, and along with that so does eCommerce credit card processing. Today, merchants have many options to choose from for fulfilling their eCommerce credit card processing needs. So what are some of the features a merchant should look for? Following are a few items to consider:
- A secure gateway is a necessity. Merchants should investigate the security features of the gateways they are considering. No matter the possibilities being considered, a PCI compliant solution is a must.
- Costs should be examined. Merchants should educate themselves on how credit card transactions are priced and look for the lowest rate possible, all things equal. Look for interchange plus pricing.
- Tools and system integration. Many merchants will require a shopping cart system, so make sure the provider has the necessary tools and API’s to integrate with the shopping cart of your choice. Ideally the eCommerce credit card processing provider will have already integrated with a variety of shopping carts.
- Reporting. Make sure you have access to powerful reporting functionality. In addition, system notifications to both the merchant users and consumers can be extremely beneficial.
Understanding Interchange Plus Pricing.
- Every company fits into one of the industry categories within the interchange table. At that particular interchange rate for a given company, it is the lowest amount that could be possibly charged to you. However, the eCommerce credit card provider would receive nothing at that rate, so the question becomes how much over interchange can I get my merchant account at?
- Plus: You want a rate that is the smallest percentage over your interchange rate as possible.Typically, eCommerce credit card providers quote rates in basis points for interchange plus pricing. Basis points are fractions of a percent. In other words, 30 basis points equates to 3/10 of 1 percent. What a merchant account provider will give you is dependent on your volume. If you already have a merchant account,one way to find out what the provider will charge you is to have them analyze your statements. Your goal, assuming all other things equal, is to get the best possible rate you can that is in the contract as interchange plus pricing. If the provider quotes you at 30 basis points, you then know you are being charged 3/10 of one percent over the lowest amount that could be charged.