Are you a small business owner who operates online? If not, you may want to consider breaking into e-commerce. Revenue from e-commerce in the United States was $431.6 billion in 2020, and experts expect that number to climb to $563.4 billion by 2025. Even if you own a brick-and-mortar business, accepting online payments could expand your customer base and increase revenues. Of course, customers can’t pay cash when a transaction takes place online. There are also no physical card readers present at checkout, as there would be at a brick-and-mortar store. Merchants must have online payment processors in place. In this guide, we outline how to accept credit card payments online and its benefits.
How to Accept Credit Card Payments Online
There are primarily three ways you can begin accepting credit card payments online.
1. Install a Payment Button on Your Website
If you already have a website in place, one of the quickest ways to start accepting payments is by installing a "Pay Now" button. When a customer is ready to check out, they can click a button that says, "Pay Now." Typically, this button is located with a customer's "shopping cart" so that they can review and finalize their order before payment. When a customer selects the "Pay Now" button, they are then presented with a secure form that allows them to enter their name and payment information. Typically, the site will list the business' accepted payment options.
2. Set Up Online Invoices
Another way to accept credit card payments online is by setting up an invoicing system. This is a great option for brick-and-mortar businesses that want to allow customers to pay online for in-person services.To receive payment, you send an invoice to the customer that lists the amount owed and your accepted payment methods. If the customer wishes to pay with a credit or debit card, they can select the secure link that's included with the invoice. When the customer clicks on the link, they are directed to a secure website where they can enter their payment information and complete the transaction.
3. Use a Virtual Terminal Over the Phone
Another payment processing option is to take customer payments over the phone. Even if the customer can’t go online to enter payment information, you can still process the payment online with a virtual terminal.A virtual terminal allows you to process credit card transactions without the card itself being physically present. Virtual terminals work for both online stores and taking payments over the phone.
How Online Credit Card Processing Works
In order to accept credit and debit card payments online, you need a merchant account and a payment gateway.A merchant account is a type of bank account that allows you to accept credit card transactions. You need a merchant account whether you are accepting credit cards in-person or online.A payment gateway is what connects your website to your payment processor. It allows you to have a secure payment form on your site so your customers can enter their credit card information.When you use a merchant service provider, like Nadapayments, the merchant account and payment gateway are built right in. So you can get started with accepting online payments in no time at all.
The Benefits of Accepting Credit Card Payments Online
Though there are transaction fees, today's businesses need to accept payments online. Below are some of the primary benefits that come with doing so.
As mentioned, e-commerce is expected to grow substantially in the coming years. Learning how to accept credit card payments online can boost sales. Additionally, studies have found that customers spend more when using a credit card versus cash. Operating online also expands your customer base. You can reach customers across the country. If you are only operating a brick-and-mortar store, you are limited to the customers in your area.
Improve the Client Experience
As a business owner, you want the payment experience to be as easy as possible for your clients. Allowing for both credit and debit card payments gives customers a better experience because they have more flexible payment options. Furthermore, allowing customers to make purchases from the comfort of their own home, without having to visit your brick-and-mortar store, can build brand loyalty. The same can go with sending bills or invoices to customers. Let’s say you run a dental practice and invoice a patient. You can send an email invoice to the patient and allow them to pay from home, without having to mail a check or make another trip to your office.
Boost Cash on Hand
Credit card transactions process rather quickly. As a business owner, this is useful because it increases your cash on hand. The money from a credit card transaction will often appear in your bank account within a day or two. Compare this to having to wait for a paper check, which could take days, if not longer.
How Nadapayments Helps Businesses Accept Payments Online
Now that you know how to accept credit card payments online, you are probably curious about which credit card processor you should use. Nadapayments not only provides merchants with Wi-Fi-enabled EMV Quick Chip machines for in-person transactions but also includes access to virtual terminals and mobile apps as well. The mobile app provides merchants with a mobile point of sale system (POS system) that they can take with them anywhere, while the virtual terminal makes it possible to have “Pay Now” buttons online, send emailed invoices, and accept payments over the phone.Nadapayments accepts multiple payment methods, including:
Nadapayments offers a unified payment experience. You can easily track all of your transactions from either your in-person credit card machine or your virtual terminal — no matter how you've accepted the payment. The two systems link with one another and work seamlessly. Pricing for a Nadapayments terminal is only $35 per month. There are no hidden costs, monthly minimums, or setup fees. And, using Nadapayments can quickly pay for itself because of the money you'll save on processing fees. Businesses are required to pay processing fees whenever a customer uses a credit card. These fees are approximately 3.5% of every transaction.But with Nadapayments’ surcharge program, these costs are passed onto the customer when they choose to pay with a credit card. Customers can avoid the extra fee by choosing to pay with a debit card instead. These fees are made clear to customers when they are checking out online. Lastly, Nadapayments is entirely secure and PCI-compliant. All merchants are required to follow the Payment Card Industry Data Security Standards, in the interest of protecting both merchants and customers. Nadapayments meets all standards, which helps protect both you and your customers' sensitive information.
Start Accepting Credit Cards Online to Help Grow Your Business
If you are a small business owner, you should be conducting business online. With e-commerce set to grow in the coming years, learning how to accept credit card payments online can help you grow your business. There are three primary ways to accept credit card payments online:
Through a hosted payment link
Via an emailed invoice
Over the phone with a virtual terminal
Nadapayments makes all three online options easy to implement. Plus, it helps merchants save money on transactions and gives customers the convenience of multiple payment options. Be sure to reach out today so you can start accepting credit card payments online.