The internet and the possibility of wide access to it have contributed significantly to the development of online stores and the spread of e-commerce. The online presence of a business can work in the following two ways:
- It can be the business itself. Developments in internet service development technologies made it possible to create independent online stores (e-Shops), which operate without a physical space and by extension, without the existence of staff.
- It can support online a business that maintains a physical presence, providing the possibility to buy part or all of its products or services online.
In any case, there is a need for services that will provide the visitor of an e-Shop with the possibility to carry out his financial transactions through the page electronically. Although there are several methods that can be used to process online transactions, the credit card is the simplest and fastest way to make an electronic payment. The methodical and careful study for the final application of the specific method is necessary in order to ensure safety at every level.
Advantages of Credit Cards
Choosing a credit card as a method of collecting money from your online store has the following advantages:
- The average consumer is familiar with their use, as they count several years of presence in the market and trade, as a means of financial transactions.
- Thanks to the ability to use credit cards worldwide, financial transactions with businesses and customers abroad become possible. The result of this possibility is to expand the geographical boundaries to which your company has access and to increase the chances of cooperation with foreign companies.
- Give the prospect the option to pay for the product or service in installments.
- Provide the customer with the possibility of credit and refund of the amount paid for the purchase of the product, should this be deemed necessary.
Methods of Credit Card Integration in Websites
There are two ways you can follow in order to provide the possibility of implementing credit card payments through your online store.
a) Credit card transactions through third party services
b) Credit card transactions directly through a bank
a) Credit card transactions through third party services
In this particular method, you must choose the service that will implement and manage the transactions between your business and the bank or banks with which you wish to cooperate.
In more detail, the steps to follow are the following:
- You choose the service that will act as an intermediary between your business and the cooperating bank. Indicative services you can use are the following: PayPal, Amazon's WebStore, CCBill, CCNow, Google Checkout, Kagi, ProPay,RegNow. You should research several of the options available, as each one charges a different fee and some of them may not accept companies from Greece. Such services require you to activate a bank account.
- After choosing the service that serves you, you create an account with it and declare the bank account to which you wish the money from your customers to be deposited.
- Then, you should give your customers the possibility to use the selected service, so that they can make the desired purchase from your website. Each service presents its own functionality and therefore you should refer to the respective official website in order to look for the exact operating instructions.
In general, these services have the following mode of operation:
- The service provides a login button through which the customer is identified as a registered member and lands on a page with billing details for the service or product they have selected.
- After confirming that he wishes to complete the purchase, the transaction takes place and the service informs the bank about the transfer of funds.
b) Credit card transactions directly through a bank
In this case, no third-party services are involved and the transaction takes place directly between the customer's bank and the bank with which your business cooperates. Although this method requires more steps for its implementation, it ensures that the transactions remain independent of the use of third-party services.
In more detail, the steps you follow in this case are the following:
- You choose the bank with which you wish to cooperate. You should in any case confirm that the cooperating bank supports the conduct of e-commerce transactions (e-commerce).
- After your request to open a Merchant Account is approved, you are provided with a system that undertakes to implement the charging of your customers' credit cards through your website.
- You will then have to connect the e-commerce system with which you have implemented your online store, with the one provided by the bank. Since there is usually no automated system provided for this interface, you may need the intervention of a programmer.
Which method should I choose?
To decide which method is the one that best serves your business, you can make an estimate of the volume of transactions that will be carried out through your website. The first method is suitable for quick implementation and for small-scale transactions. If, on the other hand, your website carries out large-scale transactions in both cost and frequency, the second method is recommended.