Many online businesses consider white-label payment services an attractive alternative to getting a merchant account at the bank. The following explains how these work and why companies can benefit from them.
White label payment services solve the problem of high credit card fees by offering clients lower interchange rates than traditional brick-and-mortar merchants. These lower rates mean that eCommerce retailers can offer their customers lower prices than retail stores with similar items, which is good for sales.
When using these services, customers don’t even realize where their payments are processed. They just see the site address they’re buying from. This also reduces shopping cart abandonment because it’s harder for shoppers to compare costs when they notice what payment method is being used.
How Can eCommerce Take Advantage From White-Label Payments?
White label payment services also provide business owners with the flexibility of the shopping cart solution, another key benefit. Many online retailers want to offer consumers more than one way to pay for their purchases. Some of these merchants will develop their own custom payment system, but this takes time and money they don’t have. By using white label services, eCommerce site owners can solve their immediate problem without spending extra cash or devote valuable resources to developing a custom shopping cart application.
Most importantly, though, white-label payment services are scalable because they aren’t tied directly with an existing merchant account provider, which charges fees based on transaction volume rather than the actual service itself. When the company starts making more money, it’s easy to switch to a more human-friendly payment solution.
A white label payment service provider offers its customers compatibility with all major shopping cart solutions, fraud screening capabilities in any foreign country, and competitive transaction fees. These services are very enticing for online shops that don’t want to go through the hassle of setting up their own payment systems. This is why many eCommerce entrepreneurs choose this route these days instead of looking at other traditional retail businesses for their credit card processing needs.
How does white label payment work?
You pay a one-time fee to get set up on the platform. You can also select a monthly subscription of their services, but this is not required – you only need to do so if you wish to have recurring revenue from your subscribers. Once you’ve completed this step, you will be given a badge and a brand new page on the website for your own use. The page will have all of the available features with any other membership site on the platform.
Any user who wishes to sign up from your white label page simply needs to give their name, email address, and password of their choice, which they can create upon registration. In addition, users can select a username, which they will use to log in to any public areas of the site. Once this registration process is complete, all the user has to do is provide credit card information for access to be granted.
At no point is your personal or payment information given out to anyone else who registers on your site. The only info you must hand over when signing up users with your own badge is an email address and password combination. This type of registration system is becoming more common these days.
Automated Merchant Onboarding
Automated Merchant Onboarding lets you set up your online store to validate credit card details before placing an order. This process prevents your business from processing fraudulent transactions, allows refunds to be processed in real-time, and reduces the need for customer service during checkout.
With today’s advanced technological capabilities, it’s easy for merchants to offer this service with very little effort. The following article will explain how Automated Merchant Onboarding works and show you how to activate it on Shopify POS 4.1.0 or higher.
What is Automated Merchant Onboarding?
Automated Merchant Onboarding verifies a shopper’s credit card information when they place an order in your store so that funds are not captured until the credit card is validated by the card-issuing bank.
The benefit of using Automated Merchant Onboarding is that it reduces the need to review every order placed in your store. This service also helps protect your business from fraudulent card use by verifying credit card numbers with the issuing banks before processing them, allowing refunds to be issued immediately without requiring approval, and ensuring that only authorized transactions are processed.
How does Automated Merchant Onboarding work?
Before processing an order, Shopify automatically sends a request to the card issuer (e.g., Visa, Mastercard) for each shopper’s stored credit card information. The issuer responds either positively or negatively based on whether or not it has approved the transaction.
If the customer’s account number is valid, Shopify captures the payment, finalizes the transaction. If the issuer returns a negative response, Shopify automatically sends an email to refund the order to avoid processing it.
If you have activated PayPal on your POS, you can also use Automated Merchant Onboarding with PayPal. The process works exactly the same way as credit card validation, but instead of sending requests to Visa or Mastercard directly, Shopify sends them to PayPal.
What are the benefits of Automated Merchant Onboarding?
1) Protects merchants from fraudulent transactions
2) Reduces checkout abandonment
3) Provides faster refunds for customers
4) saves time by reducing manual order review by merchants
5) Allows more time to serve customers
6) Allows for shipment of goods before full payment is made.
To activate Automated Merchant Onboarding, you need to enable it on your Shopify admin’s credit card settings page. The automated onboarding feature can be enabled for any credit card added to your store’s payments profile. This means that if you use cards issued by multiple banks, you can automate all of the cards without excluding any of them.
Shoppers will still be able to manually enter their own bank card details when placing an order, even if they have previously saved a card with their account by using the automatic onboarding service. However, if they choose not to use this feature and rely on manual entry instead, they will be prompted to enter the CVC code before the transaction is completed.