E-commerce Credit Card Processing and the True Cost of Convenience

With the rise of e-commerce platforms like Shopify and Magento, it has never been easier to set up your own online business. Annual e-commerce sales are skyrocketing and are projected to double in just the next few years. With the growth in online shopping and the ease of business launch, more people than ever before are opening up their own businesses. Unfortunately, very few are actually making any money at it.

The cost of acquiring traffic is high and the pitfalls are many. Inexperienced people around the globe are flocking to the allure of making extra money online whether it’s the stay-at-home parent raising their children that want a side income or the person who wants the freedom to travel the world while making money from wherever they choose.

In such a hyper competitive space, every cent counts and this article covers one of the many challenges facing online sellers both new and experienced alike, credit card processing. Not to pick on Shopify as they have a great platform but did you know that they actually make more money from credit card processing than they do from your monthly store fees? They don’t own a bank so you may be wondering how does it all work?

Shopify Pay is just white labelled Stripe. Let’s say a user is savvy enough to know they can get a better deal. Shopify still charges the user a fee for using outside processing. Now there are ways around this but unless you have a solid technical understanding of how the processing side works, it’s very beneficial to work with a company like DCMT who can show you ropes.

What’s the problem with using the easy off the shelf solution? The problems are many especially that you’re paying too much in fees to process credit cards.

Did you know over 80 percent of merchants could reduce their credit card rates with a simple phone call? Going through the list of DCMT’s quotes to online merchants, it was less than 1 in 10 that they weren’t able to offer savings. By working with banks around the world, they are able to match specific types of merchants with the banks that are looking for that business. These direct banks take far lower margins than companies like PayPal or Stripe would and they offer additional tools and services that can really help your business. 

It takes too long to get your money.

No business has unlimited money to spend on advertising and the last thing a business needs is a company like Stripe taking a full week from the time they process a credit card payment to the time that it actually shows up in your bank account. That’s what’s great about a company like DCMT. They set you up with a bank that can put the money in your account next day not next week freeing up plenty of additional operations capital. 

The solutions are inflexible and they provide terrible customer support.

Let’s say you were processing credit cards with Stripe and selling workout gear on your Magento store. You decided to add a white-labelled multivitamin supplement since you knew it would make a great upsell to your health conscious customers. The second Stripe realizes you added a supplement to your store, your credit card processing is getting shut down and the reality is you won’t likely have time to set up an alternative processing solution. An email will simply arrive saying your processing is being shut down for violating their terms and it won’t even tell you why.

Customers will be unable to purchase your products and your traffic you’ve worked so hard to build will go to waste. Want to call them to discuss your account and figure out what you did wrong or what they have an issue with?  You’re out of luck, they have no telephone support and even if you email them to ask why, they’ll just give you the same template answer that you are in violation of their terms of service without telling you what you did wrong.

Sounds crazy but this is their actual operating policy and while this is a single example, an entire book could be written on the issues they have caused legitimate business owners who didn’t know there were better solutions out there.

A company likes DCMT looks at your business, matches you with a direct bank that will give you better rates, a better product and they will actually be there for you to answer the phone when you need them.

Whether you use a stock processing service like PayPal or already have your own merchant processing in place, DCMT can help you get additional processing and save you money while doing it. Everything from retail stores to high-risk ecommerce sales, they have exclusive relationships with banks around the world for even the most difficult of needs.

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