How to Accept Credit Card Payments for Online Business

How to accept credit card payments via online systems might be tricky for some business owners since it differs from in-store payment acceptance. During in-store transactions, we usually include an Electronic Data Capture (EDC) machine to swipe the customers' credit cards and process the transactions.

Since online businesses have no physical stores and carry any transaction through the online system, it is reasonable to create an online payment acceptance flow. Get a better understanding of how to accept credit card payments through the article below.

Credit Card Payment Overview

Credit cards allow customers to manage their cash flow more easily with a credit payment scheme. Customers can order their preferred products and pay using their credit card which is not deducted directly from their bank account.

Customers or cardholders will pay any expenses they have already done within a month and recapped inside monthly invoices. This type of payment scheme is favorable to customers who purchase a bigger amount of product price and the ones who trying to keep their cash flow in a manageable way.

Credit cards are the right solution for customers who need certain products quickly but are constrained by cost issues. For instance, if you immediately need a gadget to fulfill your work or buy special items with limited stock.

From a business owner's perspective, this payment mechanism also has the potential to increase sales. Because it can help the customer's purchasing ability, which is fulfilled first by the card issuer. The customers will have more space and time to pay the invoice since it’s covered by credit card in advance.

Furthermore, understanding how to accept credit card payments by utilizing online systems also uncovers a new way to connect to potential customers overseas. In today's connected world, the potential for conducting international transactions is also increasingly wide open.

Customers' payment cards which are supported with international connections like VISA, Mastercard, American Express, JCB, etc., can proceed with international card payments. This type of card is accepted in many countries so they can facilitate Indonesian people abroad who want to shop while traveling.

The same thing also applies to international citizens who come to Indonesia. It is an essential part of the payment ecosystem if you want to build a business and craft a strategic flow on how to accept credit card payments or debit card payments.

Business Industries in Card Payment

Different businesses might require different payments. The scale of online business can also affect what type of payment is needed in the business transaction system. Larger and growing businesses tend to need credit card payments to fulfill their customers' payment needs.

Each business industries or segmentation also have a different urgency on how credit card payment can help the business grow faster. Here are some business industries’ cases that leverage online credit card payment:

1. Hotel & Tourism

This type of business industry commonly accepts payment in advance as part of the booking fee. Limited space or rooms for customers made the business owners usually require booking fees if the customers want to secure the rooms.

It can be a full payment or partial payment for booking fees. The customers usually come from different areas or even different countries from the hotel & tourism places, so online payment is an advanced solution to carry out the booking transaction process.

Credit card payment using a trusted payment platform benefits both business owners and customers to run secure and practical transactions.

2. Fashion

Fashion is one of the business industries that can run without official physical stores. Local starting brands are promoting their products via online platforms such as social media and websites. This type of business optimizes its transaction flow by using online card payment.

Especially, the ones with higher prices or require a pre-order payment scheme. Customized fashion or craft products can also leverage online payment systems to capture a larger market size by introducing their business online.

3. Luxury items

Luxury goods have become a global phenomenon and trigger higher demand around the world. Local retailers and personal shoppers generally accept card payments to process their transactions with customers, especially credit cards. Customers might prefer a credit type of payment to manage their monthly cash flow.

It is essential to provide secure online card payment to build trust with your customers since the customers will need to write down their card details to process any online card payment transaction.

4. Digital Products

As we know, digital products are intangible, and generally prefer online marketing platforms. By providing online payment to your customers, it will create a seamless purchasing flow. From choosing products, add to cart, and proceed to payment. An easy and fast transaction process will be an additional unique selling point for your business.

How to Accept Credit Card Payment

After getting better clarity about card payment and its application in several industries, it is time to comprehend how to accept credit card payments during online transactions. Any business will need an account with a payment service provider to connect their platform with a payment page to accept credit card payments.

We divide this payment solution into integration and non-integration card payment acceptance. To integrate your website business with payment service, you can choose a payment gateway service. While non-integration payment acceptance is carried out with a payment link.

a. Payment Gateway

A Payment Gateway (PG) is a digital system service that helps business owners to receive payments from customers. This service functions as a liaison between customers, banks, and merchants so that the transaction process can take place more easily and effectively.

Business owners can connect their websites to credit card payment channels that support various types of card issuers, such as VISA, Mastercard, American Express, JCB, and so on. This payment service becomes the bridge that enables payment from customers’ preferred payment method to business owners (merchants).

Here is a simple flow of how the process works:

1. Customers pay with a credit card
2. The bank partner receives customers’ payment
3. Payment gateway process settlement
4. Fund settlement to merchants’ bank account

b. Payment Link

Non-integration payment acceptance is suitable for growing online businesses. The business owners do not have to build any website first to accept payment. Then, how to accept credit card payments if we don’t have a website? It will carried out using an advanced payment link.

In payment technology, a payment link is a link that is connected to a payment page and has one or more online payment methods. The link can be used to receive payments. Customers can access the link to make payments using credit card payment options.

Each payment link is created based on specific invoice data. This condition makes one payment link only supported for one invoice. You can create the payment links using the payment provider service.

Payment links can be accessed easily via a browser by customers without needing to log in or register an account. Customers will pay the nominal bill according to the payment method provided by the seller.

Connect your business with card payment using a trusted payment service from iFortepay. We provide payment gateway services and payment links to support your business transactions. As a go-to local partner in Indonesia, iFortepay is a leading payment provider to assist your transaction needs by utilizing solid infrastructure and an extensive ecosystem by Djarum Group.

iFortepay is licensed by Bank Indonesia and complies with PCI DSS requirements to ensure your transaction security. Feel free to discuss your payment needs with our professional team by emailing us at sales@ifortepay.id.