A starter guide to secure ecommerce payment processing


Date: 24 May 2022

A businesswoman receives a payment via her payment processing provider

Setting up payment processing services can be a complex task. If you're new to ecommerce, you may not be familiar with how online payments work. Luckily, several online resources can help this detailed guide on how to accept online payment with pay.com

This article will help you get started on setting up online payment methods for your website.

Online payment methods

Having an online payment system in place can provide many benefits to both your business and your customers. If you want to take advantage of these benefits, you can offer these payment methods below:

Credit card payments

Almost all payment processors allow credit card payments from your customers. Using a credit cards is one of the most common ways to pay online.

Credit card payments go through the following process:

  1. The customer enters payment details on your website.
  2. Your website sends the details to the payment gateway.
  3. The processor will either approve or decline the transaction. If approved, the site accepts the payment and completes the checkout. If declined, your website rejects the payment.

ACH transfers / eChecks

Automated Clearing House (ACH) is the process of moving money from one bank account to another whilst eCheck transfers are payments using checks. eChecks enable banks to handle the risks, making it convenient for customers. This is why eChecks are popular among many small to medium-sized businesses.

The two processes can replace transactions involving traditional paper checks.

These methods allow the customer to enter bank details. The payment gateways will then start the transfer to your merchant account.


You can accept cryptocurrencies if your customer wants a private and secure transaction. Cryptocurrency transfers are much like ACH transfers but they are immediate and there are no payment processing fees.

Cryptocurrency payments aren't always a smart option for start up businesses though. If you're only just starting up, it's recommended that you use alternative payment methods.

Alternative payments methods

Alternative payment methods involve the use of online wallets. These include PayPal, Amazon Pay, Google Pay, and Apple Pay. PayPal is one of the most common payment methods on the internet. It enables credit card transactions while functioning as a money transfer service.

There are several other alternative payment systems you can use on your website. Before you decide which payment system to use on your website, you need to know what to look for when choosing payment processors.

Things to consider when choosing an online payment processor

PCI compliance

Any firm that handles credit card information must follow appropriate regulations. The Payment Card Industry Data Security Standard issues requirements about this topic.

When you're looking for an online payment service, make sure to keep this in mind. Ensure that when your payment service is in place, you're following PCI regulations.

Tokens for sensitive customer information

Tokenisation is the process of saving a customer’s payment information for a later date. Credit card information should never be saved on your website. Instead, your payment gateway should tokenise the payment details. Once the information is in place, the processor converts the date into a token. Your payment gateway can use the token to identify a specific customer.

By doing this, you’re securing yourself and your customers from hackers.

Payment methods

The payment method is one of the most important features of your payment processor. Your software should allow you to accept the payment methods your customers want to use. Some processors accept PayPal, Visa, and Mastercard payments and some don't accept payments through American Express and Discover.

Remember, you want to give customers as many payment options as possible so that they can use their preferred payment method. This can help ensure they complete their transaction with you rather than one of your rivals.

Transaction fees

As a small or start up business, you don’t want to get trapped into paying huge fees for your payment processor. Payment companies will charge a percentage, as well as a fixed fee per transaction. Some firms charge a monthly subscription fee instead of transaction fees.

You need to be aware of all the possible fees and charges when choosing a processor. You may need to factor in extra fees for chargebacks or extra fees for international payments. These factors can drive up costs for your business. This is why you need to think about the transaction fees when choosing a payment processor. 

You need to work out roughly how many transactions you are likely to make per month so you can estimate your costs. This can help you find the right type of payment processor for your ecommerce business.

At the end of the day, the best way to accept online payments will depends on the specific nature of your business and customers. These variables can include target market, software integrations, price, and your products.

This is why it's important to first understand your business' needs and the expectations and demands of your customers. Doing this can help you determine the best payment service provider for your brand.

Whatever processor you choose, they should enable transactions that are both secure and convenient. This will not only be good for you, but also for your customers.

Copyright 2022. Featured post made possible by Rene Mulyandari.

What does the * mean?

If a link has a * this means it is an affiliate link. To find out more, see our FAQs.