Connecting to a processing service in seven steps

Today, accepting payments online via settlement cards is already a daily necessity for owners of online shops and other online companies. Indeed, online commerce continues to grow in popularity. ”One click purchases” are already an accepted norm among buyers online. In this article, Bilderlings Pay will outline the seven steps that are necessary to connect to a processing service.

Studies show that consumers under the age of 30 don’t have the time to go shopping, to choose the product they need or to chat with shop assistants. They find it much easier, and often more cost-efficient, to order goods online. That is, the generation of “millennials+” is turning away from shopping in the traditional offline format more and more.

Two essential elements

We wrote about processing itself on this blog some time ago. Let’s recall that a trading account is a contract between a processing company and an online store. From a buyer’s point of view, this is a method of paying for purchases online that allows him to pay with his common bank card. But this type of account is equally important to the trader. This is, above all, an opportunity to complete hundreds or thousands of transactions per minute with customers from all over the world!

Money paid by the buyer is transferred to the account of the e-tailer through a payment of the processing center. Today, in response to growth trends in online purchasing, processing companies offer flexible tariffs for services and meet the needs of customers. So, where in most banks connection to the processing service takes one month, for Bilderlings Pay it takes up to 14 days on average.

Opening a trading account is the basis for constructive work in the e-commerce sector. After all, the interest rate for processing services is directly proportional to the volume of financial transactions. To put it simply, the more money that is transferred through your trading account, the lower the rate for processing your financial resources.

So, here we identify the seven steps for getting connected to a trading account.

1. What type of bank cards to choose?

The “Big Three” – Visa, Mastercard and American Express – are the main options at the global level. According to global statistics, the Visa payment system is the leader in the US. In the EU, Mastercard takes the lead – it is issued by nearly all European banks. Therefore, if you are targeting European sales, it is worthwhile to connect to Visa or Mastercard. Perhaps there are alternative payment instruments for your trading markets. But you have to make sure that the acquirer supports their processing and gives your customers an opportunity to pay from them for purchases and services.

2. What kind of payments do you expect?

Actually, there are not a huge number of payment models to choose from. In this case we’ll discuss only two: a one-time payment after a purchase and sale transaction has been made, and recurring or regular automatic payments. Recurring payments are convenient, for example, when paying for telecommunication and communal services, or regular purchases of goods. They also minimize the risk of force majeure situations with suppliers, which is important. Proceeding from this advice, and, of course, from the goals and objectives of your business – choose the processing operator that offers the most suitable conditions for you.

3. Estimate sales volumes

As has been mentioned, the commission for processing services depends on the scale of your business. A processing company with a small turnover has an increased transaction cost, while an increase in sales volume reduces the interest rate. Overall financial position, including turnover, should be taken into account, as well as regularity of payments. You, in your turn, should be interested in your selected operator’s frequency of payments. In the case of Bilderlings Pay, for example, this frequency is at the maximum, which guarantees a quick withdrawal of money with the minimum commission fee to any account anywhere in the world.

4. Choose the service provider

It is easier and logical to open a trading account within your home jurisdiction. In this case, you should contact the payment service provider. At the same time, the provider must process payments both in the country where the main part of your sales is located, and on the global market as well.

So, if you begin online trading in one of the EU countries, while planning to scale your business into other European jurisdictions, you should choose a company that has operational experience there. The language factor is also extremely important. Check with your prospective provider whether the payment pages have been translated into the languages ​​of the countries where you plan to sell your products. For example, Bilderlings Pay Company has about twenty language templates of this kind.

It is worth considering that opening an account in a local bank, operating primarily in a local market, seriously slows down the processing of international payments. Additionally, third-party intermediaries with their commission fees are engaged in the processing procedure.

5. The site requirements

First of all, all website options that facilitate secure payments from customers must be functioning correctly. Secondly, the website must be brought into compliance with the requirements of the international card systems Mastercard and Visa. Finally, it must have necessary and sufficient information about the company, its policy in the areas of delivery and return of goods, as well as the terms of use of the website itself.

Of course, special attention should be paid to measures that guarantee your customers’ secure transactions. There are generally recognized world standards in this area. In 2015, Bilderlings Pay was certified to guarantee the protection of the card data systems PCI DSS (Payment Card Industry Data Security Standard, a single security standard in the payment industry) at the top Level 1.

As experience shows, technical integration of websites is quite simple. However, the processing provider is always required to help clients in the process of integration, regardless of their competence in this area. So, 10-page, jargon-filled manuals are out of the question. Bilderlings Pay offers its clients comprehensive consultations on how to connect to processing.

6. Documentation compliance

As has already been mentioned, you will need documentation of your business activities. In the case of startups and other enterprises registered as legal entities but lacking a payment history, different operators’ requirements may vary. Therefore, we recommend first consulting with the chosen processing services provider about the required documents.

7. What is included in the contract?

If your company meets all of the above mentioned requirements, there is nothing to worry about – the decision will usually be positive. Terms of connection may vary. However, with Bilderlings Pay the terms are on average two times shorter than with commercial banks. Next, an e-tailer will pay a subscriber’s fee for the provided operational account. Additionally, a monthly fee will be charged for the subscription to the processing services, chargebacks and repayments. Therefore, we advise you to carefully study the sections of the contract detailing the responsibilities of the parties.