Selecting a payment processing provider

Selecting a payment processing provider

Payment services explained in 5 minutes!

▼ Are you considering installation of a payment service and experiencing the following problems?
・Having trouble selecting a payment service provider to install the system.
・Unsure of whether or not to implement a payment system using credit cards and other payment methods.
・Don’t understand how to implement payment.

Essential points to check

1. Is the management screen integrated?

The management screen is more than just a tool. It embodies the total development capability and technological ability possessed by that payment service provider. As such, it is extremely important information for determining whether or not the provider possesses the expansion potential to flexibly respond to future changes in the market environment.

2. At how many companies has the provider installed payment systems? What industries and business types does it support?

Please view our past installation cases to learn what industries and types of business are supported by GMO-PG.

3. Is there a robust security environment?

Be sure to confirm that a safe and secure security environment exists from before payment to after payment. Another important criterion is whether or not the provider is working to further enhance security measures.

4. Does a test environment exist?

GMO-PG offers free use of a test environment for payment systems 24 hours a day, 365 days a year. This allows your business to confirm in advance that the payment system is appropriate for your E-commerce website.

Reasons why installing a payment system is recommended

Contributes to increased sales

More than half of online shop users want to pay by credit card. At 51.9%, credit cards are the most common payment method on the internet.
※Source: Internet White Papers by the Internet Association Japan

According to one survey, when asked “What would you do if your preferred payment method weren’t available at the time of purchase?” 58.4% of users responded “I wouldn’t make the purchase” or “I would purchase the item from another shop which provides my desired payment method.” It is no exaggeration to say that payment is the most important point for internet sales.

Installation of diverse payment services is a shortcut for increasing sales at your online shop.

Heightens the purchase rate

Installation of a payment system also leads to increased trust for your E-commerce website/online shop. For example, the fact that credit card payment is available as a payment method is proof that your site has passed the merchant examination conducted by credit card companies. In the case of sites selling digital contents for smartphones, the same effect is realized by carrier payment which bears the logo of a mobile phone provider, not to mention increased convenience.

For online payment like that made during internet shopping, the elimination of uneasiness has a significant effect on the final purchase decision of the user. Increasing the trustworthiness of your site is an important requirement to prevent the loss of customers.

Preparing an environment where users can enjoy internet shopping with greater safety and security will increase the purchase opportunities of customers and ultimately lead to a higher purchase rate.

Concept of usage fees paid to payment service providers

It is difficult for businesses to select the company providing the best cost-performance simply by using the information listed on comparison sites and summary sites, and in materials which are available on websites.

The fee system for using payment services is even more complicated than fees for smartphones or mobile phones. This is due to the need to set a variety of fees including initial costs, fixed monthly costs, processing fees, and credit card fees. Additionally, since factors such as the industry, type of business, handled products, and sales quantity vary depending on the business, a multitude of these usage fees vary.

Moreover, fees which are commonly called “card rates” are decided by credit card companies, not by payment service providers. As a result, there is some information for which even payment service providers themselves cannot make states with 100% certainty.

When searching for a payment service provider, you will probably notice that some providers do not charge anything for expenses such as initial costs, monthly costs, or processing fees. In such cases, there is always a reason such as a trade-off with the seemingly favorable and inexpensive conditions. For example, the card rate might be set very high, there may be limitations on support or functionality, or merchant screenings might be very strict.

Due to such factors, it is extremely risky for businesses to make a decision by attempting to calculate the fees which will actually be incurred from fee charts listed on websites.

How to avoid losses due to usage fees

Instead of requesting materials from several payment service providers, you should make inquiries by telephone. If the payment service provider actually has a support system in accordance with statements made on the website, that provider will most likely be able to propose a payment plan in accordance with your business model. Comparing the contents and fees of payment services proposed by several providers will eliminate the risk of making a serious mistake when implementing credit card payment.

Based on our rich experience of successful implementations, GMO-PG proposes payment plans which maximize our customers’ profits.