you start a business on-line and you don’t know how to receive payments? If your business is small, is probably the best option use the services of an intermediary instead of setting up your own payment system. Intermediaries are easy to integrate and bear the risks associated with the transactions.
What is a payment intermediary
It is a type of system that facilitates payment for products and services sold over the Internet. if you have one online shopyou can use it to outsource the payment and value transfer process of your business account without having to set up your own system. The most famous payment broker in the world is PayPal, a service founded in 1998. He has tens of thousands of international accounts and billed $7.9 million last year. It allows sending and receiving money in 24 different currencies. It only requires the customer to have an email address and it can be used to receive payments for any type of business, be it a virtual store, website, a to bloga social network page or even an operation carried out by email.
The costs and fees incurred in this service different from company to companybut generally the fee per transaction ranges from 5.4% to 7% for credit card sales and 1.9% to 2.9% for debit card sales.
Advantages of the payment intermediary
There are several advantages to adopting a payment agent. For the small businessthe main benefit is that It can be used this kind of service still before founding the company and easily integrate into a website as it is compatible with multiple platforms. Second the Broker bears the risks involved in buying and selling transactions. In this way, you can reduce the necessary expenses for payment control security technologies, which are usually quite high. A fraud guarantee is vital for both you and your customer. The payment intermediary provides greater convenience for the seller and customers as it allows the buyer to make a partial delivery of a purchase while the seller receives the money.
Not everything is an advantage. In general, intermediaries charge fees higher rates per transaction of what would be charged by a proprietary system. Next, the time to receive the values is longer, as well as the approval process of a payment can be delayed. Another problem related to intermediaries is the fact that many customers do not like using these types of services or do not know how to use them, which leads to Shopping Abandonment when they are already in the shopping cart and almost ready.
Before hiring a company that offers this service, it is important that you analyze the percentage charged for each operation and the criteria for reimbursement in case of fraud. It’s also worth evaluating the average payment approval time and the efficiency and agility of the service.