Secure online payment processing is standard requirement for e-commerce websites as this becomes the method of how you (i.e, the online retailer) receives payment for goods and/or services from your website via online credit card transaction.
The first decision is to pick one of two possible online payment processing options:
- Basic third party outsourced solution; or
- Internal customized solution
What's the difference between the two credit card processing options?
Either option is a viable solution for secure online credit card payment processing. For example, PayPal or Google CheckOut are two of the most popular online third party payment processors.
Advantages of using third party internet payment processors:
- Easy to setup
- Requires very minimal depository financial institution information
- Extremely affordable
- No ongoing monthly costs if no e-commerce transactions occur
- Displays basic template order confirmation page to you and your customers and will automatically send email order confirmations
- Plug-in play template coding with easy integration into your website design
- Vendor is responsible for secure website encryption, credit card validation/authentication and payment processing
Disadvantages of using third party internet payment processors:
- Usually only ideal for selling one product with no variables; not commonly used as the exclusive payment method in traditional e-commerce shopping cart websites
- The layout, design and structure of the order confirmation page (and transaction summary email) is not customizable
- Credit card processing fees are higher than industry standard for alternative solutions
- Perception of being a sole operation with limited sophistication
- Visitor clearly "leaves" your website in order to complete their transaction
Custom internet payment solutions
Summary of two internet payment solutions
- May be integrated into "look and feel" of your website for a tighter, cleaner internal presentation to your website customer
- Ideal for e-commerce websites with shopping cart "basket" functionality
- Most appropriate for e-commerce websites with an existing (or anticipated) consistent order volume for cost savings on a transaction basis
- Supports (and sometimes includes) a more robust e-commerce reporting system on the back-end (such as sales tax collected/due, configurable sales by custom/default dates, etc.).
In short, if cost is not the primary issue.... then a custom internet payment solution provides all the benefits of a third party internet payment processor with none of the disadvantages.
Note: a custom solution does not mean third party party vendors (in contrast with "third party processors") are not necessary to implement a custom payment processing solution.
For example, digital encryption of the credit card processing is necessary for all online credit card processing. A website designer, website programmer, web host, etc. will need to purchase this necessary encryption item on your behalf for a custom credit card processing solution.
Click here to inquire about custom payment processing services.