A repository of acronyms, jargon, and useful definitions perfect for eCommerce founders & marketers like yourself.
Third-party payment is a processor that enables you to receive payments from your customers online. The plus point of having a Third-party payment processor is that you do not need to set up your own merchant account with a bank and you can still receive payments. Most of the payment processors that you use as a business owner like PayPal, Stripe, Square, and Authorize(net) are third-party to your business.
Third-party payment processors are an economical medium to carry out your business transactions. If your business is small-sized and you want to save the cost of setting up a merchant account then third-party payment processors can be your saviors. Even if you are the owner of a successful company, you still will face a lot of difficult challenges while running your business, and one of the hardest challenges for you is going to be finding a perfect platform for processing your payments.
Gone are the days when you had to carry cash everywhere to make purchases. Today we live in the world of digitization where internet payments have taken over offline transactions. In this era of the evolution of payment processing, payment processing can become difficult for small business owners and that is when third-party payment processors make your life simpler and your transactions safer. Using a third-party payment processor can simplify your revenue stream.
Square is a well-known example of a third-party payment processing company, which allows you to sign up and start accepting debit card payments on the very same business day. Companies like Square allow customers to use their merchant account to process all of their debit card and credit card payments. Third-party payment processors like Square review all the customer payment information and also run the information through a variety of anti-fraud measures before allowing the completion of a client’s transaction.
However, while choosing the perfect third-party payment processor you must evaluate its integrity, brand recognition, and cost. Third-party payment processors are a good solution for your business when you are just starting out and do not anticipate processing a high volume of credit card transactions.