Commerce companies have the option of several payment solutions that could facilitate the sending and receiving of funds worldwide. There are numerous payment methods available internationally, some more recognized than others and some that are localized payment methods. eCommerce businesses must find the right payment methods suited to their market in order to maximize conversion of sales. The more payment methods ecommerce businesses offer the more customers they can attract resulting in more sales..
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The Best Corporate Bank Account for eCommerce Businesses
On some ecommerce websites customers are instructed to make direct payments to the business’s account using the ecommerce business’s account IBAN. Whether your ecommerce site uses direct payments or other payment methods it is important to choose the best place to open your business bank account.
When applying for a business bank account the bank will consider:
- KYC and compliance checks – The bank will check your company thoroughly and give it an internal risk score. Only if the risk score is low will most banks agree to open online business account for your company.
- Your company’s jurisdiction.
- Your field of ecommerce.
- The ultimate beneficial owners of your company.
- The jurisdictions where your ecommerce profits will be coming from and where they will be sent to.
- Average turnover of your ecommerce company.
- Location of your main customers and suppliers.
Once you have applied for a business bank account and the bank has assessed your company considering all the above factors, only then will your account be approved or denied.
Electronic Payment Methods Available to eCommerce Businesses
All ecommerce businesses need to provide their customers with ways to pay for purchases or services. There are many ways you can accept payments online. One of the most favored methods is an ewallet such as PayPal. eCommerce websites can implement a payment page where visitors can buy directly from your site with their chosen optional payment method using their EMI account, debit card, credit card, cryptocurrency or virtual business bank account. As with bank accounts all electronic payment providers will require KYC although they are usually a little more flexible than conventional banks.
Online Payment Gateways and Payment Processors
A payment gateway is a tool used to transmit online payment data to the payments processor. The processor facilitates the transaction while the gateway verifies the payment method and approves or declines the transaction. The main benefit of payment gateways is that they can easily be implemented at a low cost making the checkout process on your ecommerce site faster and more streamline.
Offshore Bank Accounts and eCommerce Businesses
Obviously every ecommerce business needs a bank account to receive payments, pay suppliers and make other financial transactions. Without a bank account businesses cannot use mobile banking. The perfect bank for your ecommerce company will depend a lot on your specific banking needs and the right bank for one company might not be the right bank for another. Before committing to a bank for your ecommerce business bank account it is vital that you are aware of what that bank can do for you. GBO can help you find the bank that best suits your business banking needs.
Payment Service Providers and eCommerce Businesses
In order for ecommerce businesses to accept payments from customers by credit card, debit card, prepaid cards etc. you must set up a payment page, payment system and shopping cart on your site. By using a payment service provider, you can offer your customers several payment method options to pay for your products or services.
Cryptocurrency payment gateways
Credit card to cryptocurrency payment gateways are an important development in the world of cryptocurrency. These crypto gateways offer users a convenient and easily accessible way to purchase cryptocurrency using their credit cards, which is a significant step forward for the industry. These gateways have a good chance of becoming more mainstream as cryptocurrency continues to gain popularity; this will likely result in a greater number of people using cryptocurrency in their day-to-day transactions.
Electronic Payment Methods and Ecommerce Sites
Ecommerce sites should offer their customers as many payment methods as possible so that they can choose how to pay for your products. Popular payment methods include ewallets like PayPal which offer a customized end-to-end payment solution so that customers can pay directly from your website. You can open an account with an Electronic Money Services (EMS) by fulfilling their KYC requirements. Then having implemented a payment service provider like PayPal you can begin accepting card payments on your website.
Payment Gateways and eCommerce Businesses
An online payment gateway offers a service to ecommerce businesses where it acts as a go-between or “gateway” between the customer and the merchant, securely authorizing credit cards and direct payments and processing payment information before passing on the payment data to the payment processor. In other words, the payment gateway secures and approves the transaction and the payment processor facilitates the transaction. Installing a payment gateway is fast, low-cost and easy resulting in a streamline and speedy checkout process. Some payment processors also offer ecommerce businesses payment gateway software.
Jurisdictions and eCommerce Businesses
Incorporating ecommerce businesses offshore is a popular option but it does come with several complications including tax issues with your home country. Another issue to consider is that banks often turn down applications for business accounts from ecommerce companies incorporated in offshore jurisdictions because of compliance issues. There are ways of incorporating your ecommerce business onshore and still pay low taxes. For example, in low corporate tax jurisdictions like Cyprus, Bulgaria and Hungary. This way your business has the respect of a legitimate company and will find it easier, cheaper and faster to open a business bank account. GBO highly recommends that ecommerce businesses in Europe choose onshore incorporation. Offshore may be cheap in the short run but in the long run you’ll pay a heavy price.
Choosing Payment Services and Banking Solutions for your eCommerce Business
It is important to find the best possible payment solution and banking services for your ecommerce business in order to send and receive funds in a streamline manner. Inefficient banking solutions can be disastrous and even lead to complete failure of a business. Ideally ecommerce banking and payment solutions should allow customers from around the world to smoothly and rapidly make payments using the method they prefer. If you provide your customers with a payment method that they are comfortable with they will be more inclined to buy and your online business will thrive.
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