The term “payment acceptance” has two meanings.
First, it is the process of accepting payments online or offline.
The second definition is the share of successful payments out of all attempted payments. In this case, people also use the term “authorisation rates” when referring to card payment acceptance.
Here, we’ll focus on the first definition, as it is much broader and more looked for than the second one.
The simplest and oldest way of offline payment acceptance is using cash. If you’d like to handle in-store transactions of a small business, cash is probably the only option you need. For larger businesses, dealing with piles of cash may be inconvenient, unsafe, and costly. Besides, people worldwide increasingly go cashless, switching to other payment methods. For example, in the US, only 29% of adults say cash is their preferred payment option.
Another way of accepting payments in-store is via bank cards or NFC devices and POS terminals. Most terminals require an internet connection for work, but there are plenty of solutions that can work in an offline mode while the connection is unstable. For this type of payment acceptance, a business owner has to work with a bank or payment service provider that offers POS devices.
Accepting payments online is much more diverse. There is a myriad of online payment options that enable businesses to accept payments, both local and international ones. For this, working with a bank is not enough for a merchant. They’ll need the help of an online payment service provider.
Payment service provider, payment provider, payment vendor, payment processor, or gateway are all similar things. These are the intermediaries between merchants, banks, and customers, who enable the transaction processing. They’re neither the owners of the transactions nor the end beneficiaries. They help merchants with accepting payments online by providing necessary software, opening a merchant account, and handling transaction processing. Merchants can only provide customers with the online payment options that their payment providers support.
If you’re only starting the journey of online payment acceptance, you’ll unlikely need a solution like ours. But once you start looking for more ways to accept online payments, you’ll discover that having just one payment provider is not enough to cover all the needs of the growing business, especially if you plan international expansion.
You’ll start working with multiple payment providers, which is when the need for new payment processing features, optimisation opportunities, and unified management and analytics occurs. It is precisely what we do at Corefy, backed up by offering our payment industry expertise as a service. If you’re already on this step of your journey, get in touch with us and let’s build an optimal payment setup for you.