How does payment work on an online store?
Introduction: What is online store payment?
When you run an online store, it's crucial that your customers can easily and securely pay for their goods. But for many new online store owners, "payment solutions" can sound technical and complicated. Don't worry – it doesn't have to be! This guide will give you a simple overview of how payment on an online store works and what you should consider when choosing a solution.
In short, online store payment is about setting up a way for your online store to receive money from your customers, whether they pay with payment cards, mobile payments, or other methods. It typically involves different 'pieces' that need to work together – or one smart solution that combines everything for you.
The "old" way: When you have to assemble the pieces yourself
Historically, it has required several separate agreements and setups to accept payment on an online store. This model can be complex for a beginner, as it often involves:
1. Acquirer agreement
An acquirer agreement is an agreement with a bank or a special acquirer (such as payment processors) that gives you the right to receive money when your customers pay with payment cards (debit cards, Visa, Mastercard, etc.). The acquirer ensures that money is transferred from the customer's bank to your bank account.
2. Payment gateway
A payment gateway is the "gate" that connects your online store with the acquirer. It functions as a secure intermediary that encrypts payment data and forwards it for approval. Popular payment gateways include Stripe, PayPal, and other payment services. Without a gateway, your online store cannot communicate with banks and process card payments.
3. Mobile payment agreement
If you want to offer mobile payments – which is one of the most popular payment methods – you also need a separate agreement with a mobile payment provider. This agreement typically needs to be connected with your payment gateway.
4. PCI DSS certification
PCI DSS (Payment Card Industry Data Security Standard) is a set of security standards that must ensure your customers' card data is handled securely. If you handle card data yourself, or your online store solution doesn't meet the standards, it can require a lot of work and resources to become certified. Most online stores, however, use solutions that are already PCI-certified.
The easy way: One combined solution
To make it much easier for entrepreneurs and small businesses, new online store systems and payment solutions have emerged that combine all the necessary parts in one package. This is often called an "integrated payment solution".
The advantage is that you don't need to enter into separate agreements, negotiate prices, or worry about technical integrations. Everything is combined in one place, often with one transparent price and one support channel. For example, GoShup.com has its own integrated payment solution designed to make payment as simple as possible for new online stores. Here everything is handled for you: acquiring, gateway, and mobile payments are combined in one solution, so you don't need to think about technical details or hidden fees.
The most common payment methods
When you choose a payment solution, it's important to consider which payment methods your customers expect to be able to use. The most popular are:
- Card payment (debit cards, Visa, Mastercard): Essential for most online stores. Customers expect to be able to pay with their payment cards.
- Mobile payments: Extremely popular for its user-friendliness and speed. A must-have for many online stores.
- Bank transfer and invoice: Rarer for B2C online stores but can be relevant for B2B sales or if you sell specific goods where this makes sense.
Choose the right payment solution for your online store
The choice of payment solution depends on your needs and your technical level. Here's a comparison:
| Criterion | Do-it-yourself solution (separate acquirer + gateway) | Combined solution (e.g., integrated payment) |
|---|---|---|
| Complexity | High (multiple agreements, technical setup) | Low (everything is combined and pre-configured) |
| Agreements | Minimum 2-3 separate agreements | One single agreement with your online store provider |
| Pricing model | Often fixed fees per month + transaction fees | Typically a simple percentage of sales (no hidden fees) |
| Support | Multiple contact points for support | One combined support for online store and payment |
| Best suited for | Large companies, technically skilled who want full control | Beginners, small and medium-sized businesses, focus on sales |
Conclusion: Keep it simple!
Accepting payment on your online store doesn't have to be a headache. With the right tools, it can be a completely friction-free process. If you're a beginner, artist, craftsman, or small business that just wants to focus on selling your products, an integrated payment solution is probably the easiest and most straightforward path. It saves you time, money, and frustration so you can concentrate on what really matters: your customers and your business.