Introduction
The days when businesses only operated offline are gone. Nowadays, almost everything can be purchased from online marketplaces. The rise of online marketplaces and the facilities they offer brought customers here. Every 3 out of 8 people shop online, and the number is rising day to day. Supporting this fact, UNCTAD reports point out that the global online retail market has captured 20.8% of total global retail sales in 2023, which accounts for $6.3 trillion. Not only B2C but also B2B sales have secured a significant place in the market, reaching $26.7 trillion in 2019, equivalent to 30% of GDP that year. To do online business, a business owner requires some fundamentals, such as goods or services, a website or app, and an online merchant account. This blog will cover the payment processing part of online business fundamentals. Let's understand what online payment processing is.
What is an Online Merchant Account?
An online merchant account is simply a bank account with contemporary, trending, and state-of-the-art features. It allows businesses to accept online electronic payment via the latest methods. With an online merchant account, businesses can accept payment via credit cards, debit cards, e-wallets, bank transfers, ACH, wire transfers, digital currencies, etc. It provides a safe, secure and smooth platform for accepting online payments from customers worldwide. Moreover, online merchant accounts allow businesses to accept international currencies without currency conversion problems. It can be said that it is a lifeline for modern businesses. Now let’s see how online payment processing works.
How Online Payment Processing Works?
Customers add goods or services to the cart and forward them to the checkout page.
Here, they enter their payment information, such as credit card details, on the checkout or payment gateway pages.
The payment gateway encrypts and tokenizes this received data before transmitting it.
The payment gateway now transfers this information to the concerned parties, such as the customer’s bank, card company, payment processor and merchant account.
If everything appears fine, then it receives approval notification of funds.
It now transfers funds to the merchant account of the business.
After settlements, businesses can transfer this fund to their regular bank account.
The Need for Online Merchant Accounts for Online Businesses in This Digital Regime
Global E-Commerce Growth:
E-commerce has experienced remarkable growth globally. In 2021, worldwide e-commerce retail sales were $5.21 trillion, which will reach $7.52 trillion by 2025.
The ease of online shopping and increasing internet penetration have contributed to this growth.
Diverse Payment Options:
Online merchant accounts enable businesses to offer a variety of payment methods, including credit/debit cards, digital wallets, and mobile payments.
If customers have their preferred choice of payment methods, they are more likely to complete the purchase.
Global Customer Reach:
Online businesses have the potential to reach 2.8 billion customers worldwide, transcending geographical boundaries.
Cross-border e-commerce is on the rise, with 57% of online shoppers making purchases from overseas retailers.
Secure Transactions:
Online high risk merchant account integrate secure payment gateways, ensuring encrypted and safe transactions, thereby building trust among customers.
In 2020, 48% of global consumers abandoned online shopping carts due to security concerns.
Mobile Shopping Trend:
Mobile commerce (m-commerce) is a significant driver of online sales, with consumers increasingly using smartphones for shopping.
M-commerce sales are projected to account for 72.9% of e-commerce sales by 2021.
Subscription Models and Recurring Payments:
Online businesses, especially those offering subscription-based services, require a reliable online payment platform to manage recurring transactions.
The subscription e-commerce market grew by 40% YoY from 2017 to 2020.
Business Scalability:
Online merchant accounts facilitate business growth by providing tools for managing larger volumes of transactions seamlessly.
Businesses that adopt online payment solutions are projected to experience 40% faster revenue growth.
Real-Time Analytics:
Merchant accounts offer insights into transaction data, customer behavior, and sales trends, aiding informed decision-making.
Data analytics can lead to a 10-20% increase in sales for e-commerce businesses.
Competitive Advantage:
Having a streamlined online payment process enhances customer satisfaction and gives businesses a competitive edge.
With a white-label international payment gateway, merchants can enhance their brand trust.
Besides these benefits, an online merchant account has several other hidden advantages that are only crafted to provide you with benefits. Truly, it is none other than a lifeline for businesses who are looking to expand their online presence.
How is WebPays the best Online Merchant Account Provider?
WebPays establishes itself as the top online merchant account provider through various standout features and services. Let's have a glance at a few important ones:
1 Cutting-edge Security Measures:
WebPays prioritizes the security of transactions and customer data. It employs top-notch security measures like SLL encryption, tokenization, 3D secure authentication, AVS, and CVV checkers. Moreover, it uses advanced AI-based fraud and chargeback prevention mechanisms to safeguard its merchants from potential fraud.
2 Versatile Solutions for All Businesses:
Regardless of business size or industry, WebPays offers tailored solutions. From startups to enterprises, e-commerce stores to subscription services, it adapts its services to fit specific business needs, providing a versatile platform for diverse clients. It has extensive experience in high-risk industries and provides personalized solutions, such as forex payment gateway, adult toys merchant account, online gaming merchant account, etc., to both regulated and unregulated merchants.
3 Wide Range of Payment Options:
Acknowledging the diverse global customer base, WebPays supports an extensive range of payment methods. This includes credit cards, digital wallets, bank transfers, digital currencies, and more, accommodating a variety of customer preferences. Moreover, it empowers merchants to accept payments in 100+ international currencies.
4 Intuitive User Interface:
WebPays boasts a user-friendly dashboard that empowers businesses to manage transactions efficiently. Its intuitive design simplifies tasks like generating reports and monitoring customer activity, saving time and streamlining operations.
5 Responsive Customer Support:
One of WebPays' standout qualities is its round-the-clock customer support. Businesses can receive real-time assistance and quick resolutions, fostering strong relationships between WebPays and its clients.
6 Adaptability to Market Trends:
Staying ahead of the curve, WebPays adapts its services to align with evolving market trends. It integrates new payment technologies and features, ensuring that businesses can offer the latest conveniences to their customers.
7 Seamless Integration Capabilities:
WebPays understands the importance of integration. It offers smooth integration with various e-commerce platforms and business software, simplifying the process of setting up payment systems for businesses.
8 Transparent Fee Structure:
WebPays promotes transparency in its fee structure, helping businesses understand the costs associated with their services. It also offers its services at competitive rates, even at the lowest MDR.
9 Global Reach and Accessibility:
WebPays is presented in 100+ countries. With its global payment gateway solution, WebPays enables businesses to expand their reach internationally. It ensures that customers from different parts of the world can make purchases effortlessly.
10 Track Record of Excellence:
WebPays is labeled the best merchant service provider (MSP) by its satisfied customers. For WebPays, "Customer is King." It follows a customer-first policy and caters to all sizes of high-risk businesses.
Whether you are a small or large business or regulated or unregulated, you can acquire WebPays to streamline your payment system. So don't let your payment processing hurdle in your online success; acquire WebPays and enjoy hassle-free payment solutions. For instant approval, Apply Now.
Source url: https://www.apsense.com/article/online-merchant-accounts-the-need-of-the-hour-for-businesses.html
Martina Smith 
