Category: E-COMMERCE

Reasons Why You Shouldn’t Use Shopify Payments

Shopify is a great platform for sellers of all types and sizes. Therefore, it would make sense to use Shopify Payments as your default payment gateway and processor. However, their payments platform is much more complicated and finicky than Shopify would like you to believe on the surface.

Though countless business use Shopify Payments successfully each day, it’s not a platform designed for every type of seller—especially high-risk merchants. Here, we’ll go over what exactly Shopify Payments is, who it benefits, and what you can do to protect your business for payment processors like it.

What Is Shopify Payments

Shopify Payments is the payment solution built directly into Shopify. If you use Shopify to host your e-commerce business, then using their payment platform is one of the easiest solutions.

Advantages

The major advantage is compatibility. You know this processor will work with the platform (but not necessarily your store). Instead of shopping around and signing up for third-party merchant accounts, you can instantly access one that will integrate perfectly.

Pricing is predictable, as it’s a flat-rate price for everything. With Shopify Payments as your payment gateway, you’ll know every fee for every transaction type.

It’s powered by Stripe, which is one of the world’s largest payment platforms. This always allows it to accept multiple currencies, so you can make sales in multiple regions.

Shopify Payments accepts the most common payment methods, including Visa, MasterCard, American Express, bank accounts, Google Pay, Amazon Pay, Apple Pay, and of course Shopify Pay. Debit Card and Credit card payments are no problem, worldwide.

Disadvantages

Flat-rate pricing may sound good on the surface, but you’ll end up paying much more in transaction fees than if you had an interchange plus account type or even tiered pricing. The basic differences are that flat rate is one fee for all, tiered changes the fee depending on card type, and interchange plus changes the rate based on your merchant type and charge type. Feel free to click the link above and read more in-depth why you’ll want to aim for interchange plus.

Stripe is a powerful payment platform available in 36 countries that accepts 135 different currencies. Shopify is available in 15 countries and accepts 85 currencies. Don’t let the “powered by Stripe” cloud your judgement on the power of Shopify Payments’ processing ability.

Shopify requires a subscription in the form of a monthly fee to its services in order to access Shopify Payments. This is on top of the fees you pay for processing transactions. So, at the end of the day, you are paying a flat fee to Stripe for using their payment platform and a subscription fee to Shopify just to access it—all while Stripe is free (i.e., doesn’t require a subscription) for users.

One of the worst aspects of Shopify Payments is how they can instantaneously terminate your Shopify account. Shopify is quick to get your store up and running with all its services in tow. But the moment they realize you’re a high-risk merchant, they will suspend and terminate your account, effectively destroying your online business.

Who Should Use Shopify Payments as Their Payment Gateway

Low-risk merchants should have little problems using Shopify’s payment gateway. If you sell a physical product (not including dropshipping), then you should have little problem using Shopify Payments. You’ll pay a premium for it, but it does simplify the checkout process for customers and receiving those payments via Shopify Payouts.

Why Not Use Stripe for Accepting Credit Cards Instead?

The biggest advantage is simply the seamless integration that Shopify Payments offers. You can view payment info directly from the Shopify dashboard when using their payment gateway, so everything is all in one place.

Stripe has its advantages, though. You can create your own checkout experience using their API and integrate it with whatever software you’re already using to manage your store. You essentially get more control and usable data for a smaller rate per month, since you won’t be paying the Shopify premium on top of Stripe’s fees.

The great thing about Shopify is that it doesn’t force you to use its payment processor. Shopify, as a platform, is open to hundreds of 3rd-party payment providers like PayPal and gateway providers Authorize.net or NMI, so you can choose the one that fits your business best. That means, yes, you can choose Stripe, but you can also pick one that benefits high-risk sellers more and lowers rates, termination risk, fraud, and chargeback fees. DirectPayNet is one such provider for high-risk merchant accounts that integrates into your Shopify store with ease.

Why Shopify Payments Is Fundamentally Flawed

One of the worst things that can happen to a small business is being shut down with no warning. This happens often with Shopify for many high-risk merchants who choose Shopify Payments as their gateway.

Shopify’s goal is to get as many shops open as possible with the idea of “making commerce better for everyone”. For the most part, the service works wonders, allowing small business owners, artisans, and people who live in more secluded areas to become professionally established businesses. But for many businesses—high-risk merchants such as those selling CBD and those in certain parts of the world—the service will open up its doors and shut them when its least expected.

The approval process comes after opening. Just because Shopify allows you to open a store doesn’t mean it will allow you to keep that store open.

It’s important that you read Shopify Payments’ rules to ensure that your store type is not on the blacklist. Dropshippers, CBD and supplement sellers, merchants selling advice, and those offering products to be received some time in the future are a few that cannot use Shopify Payments. Yes, you will be able to open your store with their payment gateway, but it’s only a matter of time before it gets shut down and your funds held. And it’s unfortunate that Shopify isn’t clearer during the registration process about these business details that can make or break your store.

Don’t Be Fooled, Shopify Is NOT a One-Stop Shop for Merchants

While it certainly positions itself this way, Shopify is far from a one-stop shop for sellers. There is no CRM, payment processing is included only if you subscribe, and it doesn’t offer the flexibility in pricing that many 3rd-party payment options offer regarding processing fees. Not to mention its deceptively limited international functionality.

Limited to Its Own E-commerce Platform for High-Volume Sellers

Many merchants sign up for Shopify thinking it’s the be-all solution for everything merchant-related. In fact, the cost adds up quickly once you add on everything expected. There will always be a charge for hosting your e-commerce website and maintaining the store. Shopify makes it easy to do this by doing it all for you behind the scenes, so all you have to do is design and upload your products. However, it’s limited to its own site.

Yes, Shopify Lite technically allows you to integrate Shopify and its shopping cart into a previously built site, but it’s more for Facebook, social media, or a blog. It’s essentially a “Buy” button for online payments with a bit of customizability made for low-volume sellers. It does allow you to process payments in person via a Shopify POS (Point of Sale) or card reader, like the way PayPal monopolized small business sales in the early 2000s. These features may be beneficial to some, but it’s still quite limited when it comes to volume.

There are other levels of Shopify plans, too, which can get confusing. Basic Shopify, Advanced Shopify, and Shopify Plus offer different fee rates for credit card processing and features that depend on your sales volume.

There Is No Built-in CRM

A CRM is a must-have feature for any online business. Surprisingly, the platform does not have its own CRM, forcing Shopify users to pay for a 3rd-party one. The problem isn’t finding a CRM, most integrate perfectly with the platform. It’s that Shopify sells itself as a full merchant system equipped with everything store owners need to run their store, connect with customers, and monitor sales. In reality, it only covers part of that promise.

International Sales Are Limited

Shopify does work in 15 countries. That’s nothing to scoff at, but it does effectively limit scalability. Your international efforts depend on your product and your audience, of course. Maybe Shopify doesn’t provide service in the countries most interested in your product. Or maybe it works in the right countries but doesn’t accept the proper currencies.

With high-risk merchant accounts from third-party providers, you can scale your business appropriately and provide service that’s only as limited as you make it.

Choose a Merchant Account Provider Whose Fees and Functionality Are Transparent

Shopify might be a great, simplified platform to create and host an online store. And Shopify Payments might be a simple, seamless integration into that store. However, the functionality of both might not provide the right support, features, or reach your business needs.

DirectPayNet provides merchant accounts to high-risk merchants that provide negotiable rates with no hidden fees, features that help you scale, and support against chargebacks and fraud analysis. Contact us today to open your own merchant account, or speak with our excellent customer support representatives regarding the benefits of making the switch.

June 23, 2021
How will iOS 14 affect dropshippers
Allow “Facebook” to track your activity across other companies’ apps and websites? Apple is trying to reposition itself with the controversial issue of handling data, confronting Facebook (and many other apps along with it) by creating a barrier around personal data. IOS 14 offers users the ability to opt-out of tracking outside of the app, making very popular digital marketing tactics much less effective. In our comprehensive guide, you can read about how it affects your dropshipping business, and what you can do to counter it.

Apple vs Facebook Ads vs Dropshipping

Facebook is still the undisputed champion of social media. Already a third of the world’s 7.6 billion people are active users (2.85 billion so far in 2021, with an average growth rate of 14% per year).

The immediate trigger of the biggest privacy scandal was not Facebook, but the British analytics and marketing firm Cambridge Analytica (CA for short), which was shown to become one of the biggest influencers of the 2017 US election through dubious dealings and may have played a major role in the election of Donald Trump. The social network came under fire after a former employee of CA alleged that the company obtained unauthorized data from more than 50 million Facebook users in 2013 through an external application that logged into Facebook.

Facebook-related apps from third-party developers could receive some personal data, and while you can prevent apps from posting to the social network on your behalf, their creators could still misuse the rest of the data they collect.

The scandal has also had a powerful impact on Facebook: It has reignited the debate over data security and privacy that has existed since the beginning, but the situation has also caused a great deal of concern at the government level, alongside users. Mark Zuckerberg and other senior executives of Facebook have been summoned for face-to-face meetings both in the US and the EU, while political, business and public figures have begun to denounce the social network as the root of all evil.

Although Facebook mobilized its resources to get a handle on the situation, this scandal opened the eyes of the public, creating an opportunity for Facebook’s direct and indirect competitors. Apple, while no stranger to privacy breaches and abuses, easily repositioned itself as a savior in the wake of the CA scandal, became one of the influencers, offering a solution with iOS’ most influential new feature ever.

IOS 14 introduced a new functionality directly affecting running ad sets and conversion events: it asks permission on behalf of all apps used to track activity outside of the app. While in-app data collection is still possible and generally allowed, users are practically invited to opt-out of out-of-app data collection. This influential feature has the biggest impact on Facebook and its retargeting capabilities.

Dropshipper challenges

The fact that Apple restricts user tracking is just the beginning. In short, the problem is that many online stores, small businesses, and dropshippers have built their business models around the ability to effectively target website visitors. Ultimately, this could even impact supply chains and purchase prices. In the time to come, those who have used remarketing may face poorer results as online marketing becomes less effective.

In December 2020, the new iOS has been adapted on 72% of all Apple iOS mobile devices, and eventually became the most successful upgrade by the Palo Alto company. Although this only affects the i-device users at the moment, many other companies are known to have such initiatives in the making. This is a very fascinating topic because a restricted Facebook algorithm will put posts and Facebook ads in front of the user that are not in their interest, and will eventually lead to frustration too. Of course, it is also true that we are almost too closely followed by the algorithms, so limiting the process seems justified from the user’s point of view.

And what results can you expect for your dropshipping business?
- The conversion event’s measurement will not be as accurate as before, so you should expect a decrease in conversion rates and ROAS.
- In cold audience targeting, where you have excluded certain retargeting lists (e.g. shoppers), you may still show ads to those who have made a purchase but not accepted the follow-up.
- The attribution models will also change, for example, the 28-day attribution model will disappear. Click-less conversions will be limited to 1 day.
- You can now only measure 8 conversions per domain.
Ecommerce targeting at its best (or not), and how to repair it?

3 elements of Facebook Ads will be directly affected by the IOS 14 update:

Conversion tracking

iOS 14 updates have caused tracking data to become inaccurate. Facebook is no longer able to track all conversions, and not in real-time either, but with a 72-hour delay. So instead of being able to react immediately to a poorly performing ad, you have to wait up to 3 days to make the necessary changes.

Algorithm optimization

With the iOS 14 update, Facebook’s algorithm became less optimized. Previously, FB ads were optimized based on data collected via Facebook Pixel. As more users adopt the changes in the new Apple iOS system and opt-out of tracking outside of Facebook, the effectiveness of the algorithm has decreased significantly. Ads are being distributed to the wrong audiences due to incorrect pixel counts and old campaigns are more likely to be turned off.

Website targeting

Inaccurate tracking leads to inaccurate customer targeting. Limitations placed on both the tracker and Facebook reporting features lead to inaccurate statistics and misrepresentation of performance. Instead of becoming more and more laser-focused, Facebook’s targeting becomes similar to real-life surveys, where people sometimes don’t tell the whole truth. And we don’t expect this to improve as other software manufacturers follow the changes applied to the iPhone.

How to keep Ad Account costs low?

To avoid your ad costs skyrocketing, you need to rethink your FB ads. What has kept your ad costs down to this point? Accurate targeting by tracking user behavior, on which Apple has pulled the plug. The easier way is to improve tracking through Google Analytics by introducing UTM link parameters into your ad URLs. This will result in rich data on your Google Analytics dashboard that you can use to manually optimize your ad sets.

Use retargeting based on user engagement. Ad sets that use this method are generally aimed at audience members who have already interacted with the ad. The majority you can’t track due to iOS 14. However, you can replace ad clicks with video views (calculate with at least 15 seconds of video view as an equivalent of a single click). Facebook still prefers videos over any other type of content, so you can base your retargeting campaigns on people, who liked and watched your videos.

How to protect your partnership with your ecommerce payment processor?

When it comes to ecommerce, especially dropshipping, one of your most important partners is your payment processor. However, this is a fragile collaboration, as processing providers are very careful about who they work with, and losing such an important partner for your dropshipping business is something you definitely want to avoid.

But how does all of this relate to iOS 14? With previous ways of reaching audiences derailed, you’re going to have to do a tremendous amount of testing to get your Shopify store back to where it was. This next period will be about wildly fluctuating sales for all dropshippers.

Finding the winning products is critical (use Oberlo to increase your chances), but not enough to avoid potential chargebacks. According to a Midigator study, the number of chargebacks overall has dropped significantly in the last 4 years, by almost 50%. This makes it even more important to keep your chargebacks as low as possible.

Because of the weakened targeting potential, your dropshipping business will attract the attention of people who are likely to buy, but also more likely to initiate chargebacks. Your goal here is to protect your online business against fraudulent chargebacks, and, in case it is a “friendly” initiation, provide the best customer service possible.

How to withstand the new chargeback rates in dropshipping?

Chargebacks aren’t just costs and lost revenue – they add hidden costs to your online business through manual review efforts, low authorization rates, additional labor hours, administration, and associated risks. A continuously high ratio of chargebacks can cause payment providers to discontinue doing business with you and put you on an industry blacklist, usually called the MATCH list or TMF (Terminated Merchant File).

In connection with the new iOS update, what can you do for your dropshipping store to continue being an ecom king? Since the number one reason for chargebacks is still fraudulent behaviour, you need to take protective measures against it.
- Even if Apple doesn’t allow business owners to have enough information for targeting before the user has purchased one of their products, you’ll have a good amount of data as soon as the checkout happens. Keep records of everything, but also don’t forget to store and use that data following GDPR.
- You can use step by step address verification services along with card verification codes. To prevent fraud from occurring, obtain as much information as possible from the consumer.
- As a dropshipping business, invest in fraud protection technologies that can help detect chargeback fraud before it occurs by identifying high-risk transactions. You can create specific rules to prohibit transactions in certain circumstances.
- Instead of focusing on SEO only, do optimization towards being accurate and transparent on the checkout page (and before). If you provide all the necessary details about your dropshipping products, fraudsters will have less chance to win disputes.
Final thoughts

Although the new Apple iOS 14 brings many changes, most of them not in favor of dropshippers, you should definitely consider this situation as a potential opportunity. Many less small dropshipping competitors operating only on Shopify, Amazon, or AliExpress, will drop out of the market, and the merchants finding alternatives to FB ads targeting will be the most successful. Watch out for new updates, such as iOS 14.5 (and v15 coming in hot this September), test wisely, check out the newest tutorials, avoid fraudulent chargebacks, and use this situation to your advantage.
June 22, 2021
7 Online Strategies For E-Commerce Merchants During The Pandemic
Some e-commerce merchants worry the Coronavirus (COVID-19) is influencing sales and merchant processing. Since March, the pandemic has changed the way entrepreneurs operate their business. Offline sales switched to online orders. And, if sales were already online, either revenue has increased or decreased significantly. Demand for credit card processing is also affected.

No one really knows what’s ahead given these uncertain times. But in this blog, we can show you different strategies to help you better manage your sales and merchant account. This is especially helpful for companies in high-risk business categories prone to chargebacks.

The state of e-commerce amid COVID-19

E-Commerce sales have jumped in a variety of industries since the Coronavirus outbreak. In fact, BounceX is reporting an increase in website visits and revenues across its global client base. Website conversion rates are increasing. Email open, click, and conversion rates are higher.

Increased internet traffic offers more opportunities for certain businesses in the online space. For example, some companies are really taking off now. This includes online health supplements focused on immunity. Particularly as people worry about fighting illness. Survivalist gear aimed at enthusiasts already wanting to be off the grid. And distance learning for adults and kids that are social distancing.

The fact is some businesses are better poised to improve sales during the pandemic.

Before we move into the actual strategies you can put in place, let’s take a quick trip down memory lane to 2008.

What the 2008 financial crisis can teach e-commerce businesses in 2020

The 2008 financial crisis was one of the worst of its kind since the 1929 Great Depression. The COVID-19 pandemic is lining up to be worse than that. But there are lessons to learn from how e-commerce businesses thrived and came out ahead in that time.

These lessons can help you better manage sales activity in the heat of the moment. Also, they help build life-long customer loyalty on the other end of the crisis.

The three main issues that affected consumer sales in 2008 were:
1. Less credit availability: Consumers and business owners had less credit available to access.
2. Increased savings/decreased consumption: With less job security and a high unemployment rate, consumers moved towards saving instead of spending.
3. Falling consumer confidence and sentiment: consumers’ outlook on the economy took a hit.
But, in that time, e-commerce businesses fared better than their brick-and-mortar counterparts. And this is even more of a reality now with the requirements for social distancing and isolation.

Those three outcomes from 2008 can be used to guide your current sales strategies. They’ve informed the strategies we outline below to increase your e-commerce sales in this and any other crisis.

7 Strategies to improve sales and protect your online business amid COVID-19

1. A website that makes a good first impression

As the pandemic moves through different countries, brick and mortar companies and even e-commerce businesses have quickly adapted to meet the needs of their customers. The fastest channels to do this is converting to a robust e-commerce setup. The first impression you will make is with your website.

Sometimes we get inquiries from startup without a live URL or even a preview of their site. Do you want to get approved for credit card processing? Develop a website clearly showing your products or service. You must also have clear pricing and descriptions of your offer. There must be little to no nudity unless you are in the CBD oil or adult entertainment industry. Even if you are, you must have a compliant website with elements like age-verification pop-up, clear refund and cancelation policies, among other things.

If you’ve already ruled your space of the internet, that’s great! But you can now expect more competition from companies and entrepreneurs taking their business online. Use this knowledge to your benefit and put your best foot forward.

2. Reinforce the checkout experience

Now is as good a time as any to verify that you have a robust and PCI DSS compliant shopping cart or CRM (especially if you store customer data). Sometimes merchants apply for payment processing without thinking of technology. They don’t realize their checkout may be incompatible with their payment provider’s back end. This can delay access to payment processing. So, make sure you are using secure tools to reinforce your checkout.

Additionally, a transparent order page is more than just having credit card logos. Customers should see detailed pricing, applicable taxes, an unchecked consent box, and link to your terms and conditions page. Make the name and address fields mandatory if applicable. Normally merchants get all-in-one solutions when they use third-party platforms like Shopify as their shopping cart. But others sometimes prefer and can afford to create their own custom shopping cart.

Whatever you choose, make sure your checkout is secure and remember to use anti-fraud tools. Applying anti-fraud measures keeps risk low. This can include the latest version of 3D-secure (3DS) which goes a long way in reducing chargeback-to-ratio sales down the road.

2. Diversify your online marketing

Amid the chatter of social media, it’s an opportune time to reshape how you market your products.
We have written before about the importance of diversifying your marketing channels. Solely using Facebook Ads for marketing is a recipe for disaster. If your Facebook Ads get shut down, your traffic and sales are immediately affected. This will inevitably impact your merchant account and not in a good way. Take advantage of at least one other social media channel and produce blog content as well as content on external sites.

Do not spread false claims via ads on Facebook. The platform has already shut down numerous accounts violating these compliance standards. Use the advantages of your product or service to show your customers how your business offering can help them during this time of need.

For nutraceutical merchants, be transparent about the health benefits, unique ingredients, any testing you’ve done, approvals, and certifications. Highlight these, but beware of using keywords that are banned or unpopular or oversaturated. Boosting your immune system is a big bonus during this time. If your supplement helps this, then go ahead and make it very obvious to your potential customers. But, do it in a way that doesn’t threaten or make false claims.

3. Re-evaluate how and what you sell

Many customers now have reduced purchasing power. What can you do to help them? Will you be able to afford to lower your prices or split the cost over several months? Are there other more affordable supplies or is there another supply chain available? Can you stock different types or different quantities of products without affecting your profit margin?

One trend we’re seeing merchants implement is cart restrictions. For example, some high-end apparel vendors use to allow customers to spend as high as $1000 for multiple items. Now we’re seeing restrictions (mostly temporary) put on the number of items that can be purchased and the transaction amount. Sometimes merchants get large orders for merchandise, but then become victims of chargeback fraud.

Unaddressed chargeback or friendly fraud can hurt your merchant account. Besides, customers are more budget conscious. And fraud is rampant. So, this is one tactic merchants are using to protect themselves.

4. Launch new products and expand into new markets

Some companies with supply chains in China are experiencing delays in order fulfillment. If possible, look to other global markets to source products. This can be a temporary or permanent shift moving forward.

For digital product merchants, it might be time to create new content that will entice a global market. Do you sell a popular e-book? What about online games? Being locked indoors with nothing else to do but one thing gets old, real fast. Refine the offerings to your visitors. Add new elements like a more enhanced chat feature to your members area or your online gaming platform. Show users how your new features and developments can keep them entertained for longer.

Next is to consider expanding into new markets – now is the time to go global. Contact DirectPayNet to ensure you have the best conversions when entering a new market. We can advise payment options needed for various regions of the world. Consider accepting local currency as that will reassure customers of avoiding costly credit card surcharges. Also, a local payment solution will lower your declines in general, as transactions from local banks have a higher approval rate.

This is an opportunity to capture new market share for those who are prepared. Capitalize on your competitors who are not as prepared or cannot weather the storm due to unforeseen problems like shipping and logistical nightmares.

5. Stay away from payment aggregators

Using third-party payment aggregators like Stripe and PayPal will seem like a no-brainer. If you sell $20 t-shirts or low-priced specialty foods, then those platforms are ideal. After all, they are quick to set up and easy to use. But if you are in a high-risk business category (e.g. high-end electronics, corporate consulting, online streaming) you need a merchant account in order to accept credit cards without worrying about being shut down.

As your sales increase your business gets scrutinized (as it usually does with these providers) then payments risk potentially being frozen. If Stripe or PayPal feels you are misleading consumers during the COVID-19 crisis, they may be more likely to place you on MATCH or Terminated Merchant File (TMF).

In our post on payment aggregators, we reviewed some of the reasons why this happens, especially for high risk businesses operating in the supplements industry. A merchant account collects credit card payments online. Find a merchant service or payment provider that specializes in your type of business. Then, once you adhere to the rules of your payment provider, you can have a long and fruitful relationship. There won’t be a need to worry about losing your processing capabilities when you need it most.

6. Audit your affiliate programs

Affiliate marketing is a cost-effective method of promoting products and services. If you operate an affiliate program, ensure performance is regularly reviewed. In this time of need, affiliates should have the same standards of sale as you do.

Ensure you check affiliate links so they’re not dormant. They should not lead to misleading or false ads. Remove partners engaged in non-compliant marketing practices. This helps curb unnecessary fraud and refunds that may result in big losses and issues with your merchant account.

Also, if you pay on a cost-per-lead (CPL) basis, it’s time to rethink your offer. You may need to cut ties with partners that have little to no conversions. If you’re afraid this will you’re your program, then reduce affiliate commissions to a more reasonable rate so it does not eat away at your margins. You can also introduce a tiered CPL model with different payouts.

7. Communicate with your customers

In today’s market there will be inevitable production delays and heightened demand for products. Not to mention severe economic fallout.

Watch your marketing language and how you communicate with your customers. Stay current and keep them informed as much as possible on their purchases. Ensure your customers are aware of any delivery delays. A pop-up on your website, a disclaimer on the product page or email message to the buyer can communicate this.

If you don’t have one already, get a toll-free support number. Source qualified agents that can answer questions or issue refunds. If hiring agents isn’t in your budget, set up a voicemail service. Use a clear greeting stating the name of your company, operating hours and other information. Check your message every hour or two during the day. Answer customers without delay. You want to avoid them calling their banks if they feel they did not get what they wanted.

How you handle this crisis determines whether your business outlasts the pandemic in a stable condition with a host of new customers. Or, you may be one of the companies shuttered, and not reopening even post COVID-19.

Final thoughts

Admittedly, it cannot be business as usual for online merchants. Your marketing and sales strategies need to adjust to the realities of what’s happening around you and in the markets that you serve. During this time of crisis, consumers are looking for businesses that can help them get healthy, keep busy and entertained. If your business solves one of these issues, you are well positioned to thrive during this difficult time.

Provide the easiest payment options, so you don’t lose the sale to your competitors. Ensure you accept all major card brands. And don’t forget to include alternative payments such as ACH in the US and direct debit solutions in Europe.

If you’re operating domestically or in an overseas market, contact our team at DirectPayNet. Let’s talk about improving your payment processing capabilities with the right merchant account for your business.
April 29, 2020
Is Your CRM & Shopping Cart Limiting Your Payment Processing Options? Pt. 2

Selecting or switching to the right CRM and shopping cart for an online business is an important decision. If you work with subscriptions or offer multiple payment options at the checkout, these tools will influence sales more than you think. In part two of this blog we will highlight the importance of having key features to improve conversions. We will also examine why PCI compliance is vital to your online business. (Part one can be read here.)

The essential features in a robust checkout process

Before you can adopt a CRM system and a high-converting shopping cart for your business, you first need to understand your business transaction process. Further, no matter the system you chose, it should facilitate responding to issues through your CRM and shopping cart.

With a multitude of choices, it is important to make a list of key features available in several CRMs and shopping carts. This will help weigh pros and cons as well as compare costs for each. Keep in mind, most CRMs bill you based on how many modules and features are needed.

Note that your chosen payment processor and the type of payment methods you want to offer must also inform your choice of CRM and shopping cart. Moving data from one CRM to another is messy and can lead to lost information. Consequently, many key factors should be carefully considered and not only be limited to cost. Determine if your payment processor and gateway are integrated within the CRM and shopping cart.

Additionally, some shopping carts don’t permit ACH as a payment solution. So, in addition to compatibility of CRMs and shopping carts, investigate the features that will complement services or options offered to your customers.

Now, as you start reviewing the tools available and their compatibility issues, there is another essential criterion your shopping cart and CRM should meet – PCI compliance.

The importance of checkout page security (PCI Compliance)

Your shopping cart must be PCI compliant if you accept payments via credit card and store customer data within the software. For example, shopping cart providers such as Shopify are PCI compliant and extend this compliance to all the stores it powers. However, Shopify may not facilitate all the functionalities and flexibility you need to run your online business, especially if you’re classified as a high-risk merchant. Therefore, you may need to find alternatives to power your e-commerce store or design a solution to suit your needs.

You may feel that it’s in your best interest to do it all yourself. If so, you will have complete responsibility for PCI compliance. For example, simple things like the hosting company or package you choose can affect PCI compliance. If you decide to go this route, then it’s important that you work with qualified security PCI assessor to ensure all your customers’ data is secure. You need a team that can help you determine the best payment gateways and other necessary tools to ensure full PCI compliance to protect your business and customers.

PCI compliance can be a challenge. Small and medium-sized businesses often underestimate this. To meet the need for compliance, it’s usually best to use a versatile gateway and integrate with a trusted off-the-shelf CRM and shopping cart solution that has taken care of becoming PCI compliant. This allows you to ensure that you are offering customers the most secure options available.

Is customer data really secure?

Whatever direction you choose, ensuring the security of your customers’ data is of utmost importance. Ask your shopping cart platform provider if they are PCI certified and at what level. Ask questions about the security of their data centres so you can protect your customers’ data. Moreover, this information should be updated in your website’s privacy and terms of service policies.

Remember that even as you “outsource” payment processing, it is still your duty as the merchant to ensure that the shopping cart software you use is PCI compliant and secure. Outsourcing this function does not mean that you have removed all responsibility from your business. Therefore, it’s in your best interest to continually check that the software provider continues to maintain its PCI compliant status.

What happens to your business (and merchant account) if there’s a technical glitch?

In addition to thinking about all the business issues you need your CRM to address and its security, you need contingencies in place. It is inevitable that some CRMs will discontinue service or have technical difficulties. So, how are you to protect your data if this happens to your preferred solution?

Look at the measures they have in place to protect you. Check how much access the CRM offers to your business data stored on their system. Can you export the data? How badly will the fallout be with your merchant account if there’s a failure in your CRM? As you can see, this is why it helps to work with an expert who understands online business needs vis-à-vis CRMs, shopping carts and merchant accounts.

What can you do about your CRM and shopping cart?

Your choice of CRM and shopping cart solutions can have a significant impact on your business. Your payment processing could affect compatibility with other tools and an acquiring bank’s system. Any breakdown in business operations will affect sales. And it may impact your merchant account and relationships with payment solutions providers.

We want to stress how important it is to have a secure checkout process to protect your customers and merchant account. It’s imperative to work with a company within the industry that understands the intricacies of CRMs and shopping cart functionalities.

If you’re a high-risk merchant, then contact DirectPayNet. We specialize in merchant services for high-risk businesses. Our experts can help your team determine the ideal needs for your business. Additionally, we use our expertise in e-commerce to help you select an optimal CRM and shopping cart that fuels growth, not stifle you with technical difficulties. If you are interested in working with us, send our sales team an email here.

April 18, 2019
Is Your CRM & Shopping Cart Limiting Your Payment Processing Options? Pt. 1
Are your CRM and online shopping cart compatible with your payment processor? Too often e-commerce business owners launch their online stores without checking their customer relationship management (CRM) and shopping cart capabilities. By the time merchants have integrated these on their website, they discover their setup isn’t the right fit for their payment processor. Alternatively, a seller may be in business for a while, but hasn’t upgraded to a system to help grow their company. Plus, the implications these solutions have for their merchant account remain unknown. So, have you been in business for over a year and work in a high-risk industry? If so, then continue reading this two-part blog to make sure you don’t compromise your business’ sales or merchant account.

Just how important are your CRM and online shopping cart?

They may be used interchangeably, but a CRM and a shopping cart are not the same. A CRM is typically used to manage your customer data, your affiliates and all your business interaction with your buyers. A shopping cart allows potential consumers to select items they want to purchase then takes them through the checkout process. You may find a single software that attempts to offer both solutions. But more often than not, you may have to find separate software to meet your CRM and shopping cart needs based on specific requirements for your business type.

Selecting the right solutions will allow you to grow without limiting payment processor partnerships or payment type options. At least 26% of US shoppers will abandon their orders, because the checkout process was too long or complicated. Plus, without a CRM in place, e-commerce businesses can fail to convert up to 79% of their leads given data isn’t tracked correctly? And there are so many other factors that can negatively affect your conversions when it comes to your order process and page.

A poor mobile experience will cost you valuable business. Customers are moving more toward mobile methods of payment. Not having a CRM and shopping cart combo that facilitates this type of shopping channel could cut into your potential sales.

The Baymard Institute reported that 34% of online buyers chose to cancel transactions because the site required that they create an account. Yes, we agree that it’s important to get buyers onto your email list so you can manage them through your CRM. But, forcing them through an additional step to make a purchase may ultimately affect you negatively in the long run. Your shopping cart should have a checkout page designed to increase conversions.

With so much potential for lost revenues through your CRM and shopping cart applications, it’s no wonder that both these solutions are critical elements of a successful e-commerce business.

What can a properly integrated CRM and online shopping cart do for your business?

A CRM aids in managing the customer relationship lifecycle from lead generation to sales and support. A good customer management system should ensure the following:
- Marketing: It allows the ability to run campaigns and generate leads through your database. Additionally, if you have affiliates, it should allow you to manage them efficiently and track their activity.
- Sales management:Well-designed CRMs and shopping carts help customers navigate your sales through your order page.
- Order management: If you have inventory, the CRM should be integrated for visibility of your products in mind.
- Responsive customer support: It will allow you to improve relations with your clients and include a rapid response rate.
Building out a CRM and shopping cart for your e-commerce business

When looking at CRMs and shopping cart software for your business, there are a few key questions you need to ask. This is in addition to the four general areas your CRM should address that we noted above.

You’ll want to look at some business-related questions that the design of your CRM should facilitate based on your business model.
- Which gateway/payment processor/payment options are important to you or may be at a later date?
- Do you need to manage affiliates?
- Can you calculate shipping rates and taxes automatically?
- Can it manage inventory stock, for physical items?
- How well can it handle sales reporting? And, does it offer the information you need to make critical business decisions?
- Can you maintain an effective customer database that can be segmented and targeted based on interests?
- Is your customer data in a secure environment that is PCI compliant.
- Does this company(s) have a history of data breaches?
Make your next move

As you can see, selecting and integrating a CRM and shopping cart is much more involved than it appears. The most successful merchants examine their options based on a number of factors and not simply a brand’s popularity. Tools like this should be examined for security and flexibility, especially for recurring billing models and alternatives to credit cards like ACH.

In part two of this blog we will highlight the essentials for a robust checkout process, PCI compliance and troubleshooting. In the meantime, contact DirectPayNet for advice on this subject, or if you have been processing for a while and need a new payment solution. Email our team today!
April 17, 2019