What do you understand by a Payment Processor?
A Payment Processor is known as a third-party company that handles transactions for your business. They help you to get your payments, they process your payment as well as deposits of your money into your bank account which you are using for your business. A Payment Processor is very important for the recognition of your credit card on your eCommerce website.
Here Is a Short Note on Online Payment Processing
In order to get along, you have to understand Online Payment Processing. In order to process payments for your business, it is advisable for you to apply for a merchant account. This is actually an easy way that a bank is willing to create for your business. For instance, when you apply for a credit card, you have to submit your paperwork and also go through a full underwriting process. A modern payment processor like the one available on our list doesn’t require a different merchant account. Whereas, some involve an application process, which can be easily accessible. This allows the process of creating a new account easier and accessible for a newbie. Modern payment processors check on risk by using computer algorithms rather than assessing risk using applications.
The Risk Assessment and Modern Security
Payment information is directly transmitted to the processor without passing through a third-party, your business will not be in possession of your customer’s credit card number. This will allow it to comply with the credit card industry’s PCI Compliance security guidelines. Whereas the payment processor on our list offers adequate security for your business as well as your customers.
Top 5 Payment Processors for Small Scale Business
Listed below is our top 5 payment processor for small-scale business payment. Transaction rates provided by each company are of similar features. The little difference between them includes the signup, software interface as well as level of support.
The Stripe
The Stripe Modern Payments platform which was launched in 2010 makes it easy to start accepting credit card payments. The signing up of the account does not require underwriting. The tracking of payment was quite easier because of the account dashboard. The use of phone support is not available, although the use of support documentation is top-notch and you can also chat or email with their support agent.
- The transaction fees: 2.9% plus $0.30 per charge
- The Chargeback cost: $15
- The Deposit speed: Two (2) business days ( The first transfer is 7 to 10 business days)
- The International fees: 3.9% plus $0.30 per charge
- The Monthly fees/setup: Nil
The Stripe, who is It Best Suited For?
The Stripe simplicity is the best for small-scale businesses who have little experience accepting payments online. If you are comfortable with email or support via your communication tools, then Stripe is the best choice for your small-scale business.
The Braintree by PayPal
The Braintree was established in 2007 and was acquired by PayPal in 2013. It was also considered the first modern payment platform. The application for the account takes up to 2 days and it also requires underwriting. The need for phone support is to help through the sign-up process and also get you informed of any awaiting difficulties in the long run. Moreover, PayPal operates Braintree independently. There are some techniques that help you to manage your credit card as well as PayPal payment with the help of a software interface.
- The Transaction fees: 2.9% plus $0.30 per change
- The Chargeback cost: $15
- The Deposit speed: 2-3 business days, 3-5 for American Express transactions.
- The International fees: 3.9% plus $0.30 per charge
- The Monthly fees/setup: Nil
The Braintree by PayPal, who is it Suited For?
Small scale businesses who are looking for extreme support and don’t mind an extended sign-up process, the perfect option for them is Braintree. If you have customers that often pay using PayPal, the integration of the two services can help you keep track of your transactions. This software allows you to run comprehensive search queries as well as for analytics. Therefore, this makes the software to be useful to the users.
PayPal Express Checkout
PayPal was established in 1998 and it is the most popular name on our list. PayPal has been offering different payment services to small-scale businesses, this is common through eBay. PayPal was officially spun off from eBay in 2015 which is now an independent payment company. For an easier understanding of how it works, I will like to specify their Express Checkout service which enables the customers to pay using PayPal. Although we are considering to recommend the new Braintree platform as mentioned above.
Funds are debited on your customer wallet and credited into your business wallet. PayPal Express Checkout enables those using PayPal to pay for their product with the help of a virtual wallet in lieu of credit cards. For instance, some customers will rather use PayPal over a credit card because it is tender to be comfortable and more secure.
Your credit card information doesn’t require to be share with your business so preferably it is the best and more secure for your customers. The best way to integrate with is Braintree by PayPal and you can also PayPal Express Checkout in collaboration with a credit card of your choice on our processor list.
- The Transaction fees: 2.9% plus $0.30 per charge
- The Chargeback cost: $20
- The Deposit speed: 3-5 business days
- The International fees: 4.4% plus a fixed fee which depend on the currency
- The Monthly fees/setup: Nil
PayPal Express Checkout, Who Is It Suited For?
PayPal Express Checkout in collaboration with available credit card processors tends to attract every small scale business. When you give your customers a chance to choose between using PayPal and credit cards this tends to increase your sales. Although most small-scale businesses who make use of PayPal Express Checkout without credit cards do not encounter any difficulties.
Bottom Line
So there you have it. Some of the various payment processing platforms that you can adopt for your business. Consider your options, and go for the one that suits you best.
