Payment Processing

A Business Owner’s Guide to Ecommerce Payment Processing

Gone are the days of strictly in-person shopping and swiping cards at physical point-of-sale (POS) systems. 

Are you a business owner struggling to find reliable and secure ecommerce payment processing options? Do you feel frustrated navigating the complex world of financial requirements, compliance, and uncertain costs?

Or maybe you’re overwhelmed by the complexity of e-commerce payment processing regulations and unsure what solutions will work best for your business.

You’re not alone. Many business owners struggle with these same issues.

We’ve created this guide to help small businesses understand ecommerce payment processing so you can find solutions that work for your unique business needs.

In this article, we will dive deep into ecommerce payment processing—how it works and how to choose the best payment solution for you. 

What Is Ecommerce Payment Processing?

Ecommerce payment processing is the process of securely accepting payments from customers online. Businesses can use specialized terminals or ecommerce payment gateways, from credit card payments to online wallets.

Payment processing services streamline ecommerce transactions by connecting customers’ payment details with your business’ bank account, making receiving money in exchange for goods or services much easier and faster.

There are no set-up fees, monthly fees, or long-term contracts like traditional merchant accounts—making it easy for online business owners to get started quickly.

Over 70 percent of ecommerce shoppers abandon shopping carts due to slow or limited payment options. With ecommerce payment processing, businesses can offer customers a wide range of options, including debit cards, credit cards (Visa, Mastercard, American Express), online wallets (Apple Pay, Google Pay), and other digital payment methods (Amazon Pay).

Ecommerce payment processing also adds a layer of security (and complexity) to online transactions since it takes payments through a digital ecommerce platform like Shopify or own ecommerce site.

Transactions are encrypted using secure socket layer (SSL) technology, so personal information is kept safe. And when purchasing online, customers can also use two-factor authentication (2FA) for added peace of mind.

How Does Ecommerce Payment Processing Work?

Here’s how ecommerce payment processing helps business owners provide a smooth checkout experience for online shopping:

  1. You link your ecommerce store with a trusted payment processor.
  2. Customers enter their personal and financial information into a secure form on your website.
  3. Their card details are encrypted and passed to the processor via a secure third-party gateway called a Payment Service Provider (PSP).
  4. The processor requests the consumer’s bank to verify customer identity, whether sufficient funds are available, and whether purchase limits exist.
  5. If everything checks out, the PSP processes the transaction and sends you and your customer confirmation that the purchase was successful. The customer’s account gets deducted.

Make sure that your ecommerce store has all of its security measures and functionalities in place, including SSL certificates, and fraud prevention steps such as data encryption and verification steps at checkout.

Payment Processor

A payment processor facilitates all communication between the customer’s bank or credit card company and the merchant’s account

The payment processor verifies that the customer has sufficient funds before transferring them into the merchant’s account. A payment gateway makes this possible as it securely sends customer information across multiple layers of encryption to protect the customer and merchant from data theft. 

Payment processors also offer features such as fraud detection, dispute management, and compliance solutions, ensuring customers get secure payments every time they shop with you.

Payment Gateway

The payment gateway is an intermediary between your ecommerce store and the payment processor. It securely transfers data between the two entities. 

The payment gateway facilitates authorization or decline information to be sent back to the customer-facing website, allowing customers to check out quickly and securely. 

Payment gateway encrypts sensitive credit card information over an SSL connection—protecting customer data from cybercriminals and malicious actors. 

Ecommerce merchants can choose from various payment gateways depending on their needs. Some of the most popular options are PayPal Payments Pro and Stripe

You may also need to integrate additional features to ensure smooth checkout processes, such as fraud protection tools and loyalty programs.

Merchant Account

This is an account that your online store sets up with a bank so that you can accept digital payments from customers. 

To set up a merchant account, you must partner with a merchant services provider that offers solutions like virtual terminals and digital accounts.

A payment processor and gateway authorize and settle the funds, then deposits them into your merchant account. The funds will transfer to your business bank account in one to two business days. 

Security software then encrypts every transaction to ensure maximum data protection for all parties—merchants, banks, and customers. Banks also use fraud detection services to monitor transactions for potentially fraudulent activity, which helps protect merchants and their customers from unwanted activity. 

Merchant accounts may require additional levels of verification from customers before completing the transaction to ensure all payments being processed are legitimate.

High-Risk Merchant Accounts

High-risk merchants may face more stringent requirements when applying for a merchant account. Businesses in the gaming, entertainment, healthcare, and travel industries are considered high-risk due to their increased propensity for chargebacks, fraudulent transactions, or higher volumes of returns.

As a result, they may be charged higher processing fees than other merchants or need to provide additional documentation to support their application.

High-risk payment processors like Von Payments provide secure platforms to accept payments from shoppers without exposing merchants to financial risk. Von Payments offers various services designed specifically for high-risk merchants looking to improve their chargeback ratio and increase customer satisfaction.

Von Payments’ Chargeback Management enables businesses to address disputes before they become chargebacks with real-time monitoring and alerts. This service also provides helpful data analytics on customer behavior so merchants can identify potential issues before escalating into costly chargebacks.

What is Tokenization?

Tokenization ensures that online payments are secure and efficient for buyers and sellers. It allows businesses to store customers’ sensitive data—such as credit card numbers or bank account details—in an encrypted form. 

With tokenization, businesses don’t have to store payment information in their databases. Instead, they can save an encrypted token pointing to the customer’s details. 

Even when the business suffers a data breach, the stolen information will be useless as it shows no real credit card or bank account numbers.

Tokenization also allows customers to quickly check out without needing to enter their payment information every single time. 

How To Choose the Right Ecommerce Payment Processor

Here are three things you need to consider when choosing the right ecommerce payment processor:


Security is essential in protecting your payment system with an SSL certificate, which encrypts communication and card transactions

You’ll want to ensure that your processor is compliant with the Payment Card Industry Data Security Standard (PCI DSS) and that it follows the regulations set out by credit card companies to ensure your payments are secure. 

Types of Payments Allowed

Select a processor supporting various payment methods like credit and debit cards, PayPal, Google and Apple Pay, Venmo, etc. 

Also, look for processors supporting international currencies, bank accounts, and tax systems in multiple countries. 

Pricing and Fees

When selecting a payment processor, look into the most common fees: 

  • Set-up costs can be free, but the paid ones usually range from $250. Monthly subscription fees cost $10 and $50. 
  • Transaction fees are a percentage of each transaction plus a flat fee, typically no more than 25¢ per transaction. 
  • Some processors may also charge additional fees, such as costs for PCI compliance or additional software integrations. 

Von Payments Is the Answer to Your Ecommerce Business

At Von Payments, we understand how important it is for businesses to have reliable payment solutions that meet their needs. 

Von Payments offers comprehensive ecommerce payment processing solutions, giving you access to various features such as fraud prevention and secure checkout. We also allow customers to pay with multiple currencies and major credit cards, giving them the convenience they demand from an online purchase. 

Von Payments’ simple setup lets you get up and running quickly and easily so you can start accepting payments immediately!

Discover our easy setup process and take advantage of the many benefits of using Von Payments!

Payment Processing

Guide to Credit Card Processing for eCommerce

Understanding all the different facets of credit card processing might be challenging, especially if you’re just starting out.

You’re not alone. When selecting a payment gateway and understanding all the various processing fees, many business owners feel overwhelmed.

Even if you’ve been operating your e-commerce company for some time, keeping up with the most recent developments in payment processing is crucial.

A reliable payment partner is essential because fees and rules might change anytime.

This article will cover everything you need to know about processing credit card payments. Dive deep into payment gateways, the common payment processing fees, and how Von Payments can help your e-commerce business succeed.

How Does Credit Card Payment Processing Work?

A good grasp of how credit card payment processing works is essential if you want to accept this form of payment for your e-commerce business. The process of credit card processing companies can seem complicated on the surface, but it doesn’t have to be.

The first step for any e-commerce company is to get a merchant account—a bank account that enables you to accept online payments from customers using their debit or credit cards.

When applying for a merchant account, you must provide information such as the following:

  • Your business name and address
  • What type of goods or services you’re selling
  • Your estimated monthly sales volume
  • Other details like fees, rates, and terms associated with your account

Once approved, the acquiring bank will set up your merchant account—enabling you to authorize, capture and deposit online and mobile payments into your designated bank account. 

This is done by connecting all these components using the right technology, such as payment gateways, virtual terminals, and secure checkout solutions.

When customers enter their payment details at checkout on e-commerce platforms or mobile apps, the data is sent from the gateway or terminal directly to the customer’s issuing bank, where it is checked for authenticity.

The payment processor executes the transaction and transfers funds into your designated bank account.

To ensure that payments are processed quickly and efficiently, merchants must adhere to specific standards such as Payment Card Industry or PCI compliance guidelines. 

These set rules around storing and handling customers’ data and ensure end-to-end encryption throughout the payment process.

Using a Payment Gateway to Help with Credit Card Processing

A payment gateway is an added layer of security and helps merchants process credit card payments efficiently.

The payment gateway serves as an intermediary between the customer and the e-commerce store, ensuring safe and reliable online transactions.

A gateway allows customers to make secure e-commerce payments directly on your online store without being redirected to another page; customers don’t have to leave your site to complete their purchases.

Typically, when a customer wants to purchase something online, the payment gateway verifies their identity and checks if their credit card information is correct. It also collects data from the issuing bank to determine whether the transaction is approved or declined.

Furthermore, it encrypts sensitive data such as credit card numbers and personal information for extra security measures. 

As a result of these highly secure practices, customers can feel safe when making online purchases on websites that use a payment gateway for their transactions.

A payment gateway provides an invaluable asset for online stores by cutting down on fraud risk and increasing consumer confidence in your business.

Common Credit Card Processing Fees

When processing payments with credit cards, there are various fees that businesses should be aware of. These fees can vary depending on the payment processor and the type of services used.

Standard fees for credit card processing include transaction fees, gateway fees, interchange rates, statement fees, and assessment fees. Other less common fees may also include setup fees, termination fees/cancellation fees, etc.

Transaction Fees

Transaction fees are the most common fee associated with credit card processing.

Usually, a flat fee per transaction or interchange plus pricing is applied for each sale processed through the payment processor. This fee covers securely transferring funds from the customer’s bank account to the vendor’s account.

Transaction fees typically range from 0%–5% depending on the processor and services used.

Gateway Fees

Gateway fees are typically charged when using an external payment gateway such as PayPal or Stripe to process payments online.

Gateway fees are usually calculated as a flat monthly rate plus a small percentage per transaction and typically range from 1%–3.5%.

Interchange Rates

Interchange rates refer to what is known as “swipe” or “card-present” transactions and involve customers swiping their cards at point–of–sale terminals (POS).

These are standard payment processing charges assessed by a merchant’s chosen processor whenever they accept payments via debit or credit cards.

Visa, Mastercard, and other credit card companies set interchange fees. They typically range from 1–3.5% of each completed transaction, specifically as follows:

  • Visa: 1.4% to 2.5% for credit cards and .05% for debit cards
  • MasterCard: 1.5% to 2.6% for credit cards and .05% for debit cards
  • American Express: 2.3% to 3.5% for credit cards and .05% for debit cards
  • Discover: 1.55% to 2.5% for credit cards and .05% for debit cards

Statement Fees

Statement Fees are charges that may appear on your monthly statement for each month you accept payments via credit card.

Many credit card processors offer discounts if you sign up for auto-billing or commit to transactions above a certain amount each month. However, some processors may still charge statement fees regardless if these conditions are met.

Statement fees usually range anywhere from $5–$30/month, depending on the services used.

Assessment Fees

Assessment fees refer to extra charges imposed by card issuers that cover costs associated with maintaining fraud prevention systems, processing card networks, etc.

They generally amount to around 0.11%–0.13% per transaction, regardless of whether it was conducted online (card-not-present) or by swiping at POS terminals in-store.

Chargeback Fees

Chargeback fees are another type of fee that businesses may encounter when using a credit card processor. 

This fee is charged to merchants when customers dispute an unauthorized or fraudulent transaction on their statement and request a refund from their credit card issuer.

The chargeback fee covers any associated costs incurred by the merchant’s processor in handling this dispute process and typically ranges from $15-$50, depending on the issuing bank or financial institution. 

Authorization Fees

Authorization fees cover any expenses related to verifying a customer’s identity information when making purchases with credit cards or ACH payments via automated clearing house networks like PayPal or Venmo.

Authorization fees generally range between $0.05–$0.20 per transaction, depending on which service provider is used for authentication purposes.

Some providers charge even higher rates for businesses operating in more high-risk industries, such as gaming or adult entertainment businesses.

Some processors may also assess additional flat-rate authorization fees if specific criteria, like online purchases over a certain value amount, are met by customers making transactions with their cards at point-of-sale locations. 

Subscription Fees

Subscription fees are typically associated with payment gateways or merchant accounts that require a business to sign up for an ongoing subscription agreement to access its services.

Subscription fees vary depending on the service provider, but they usually range from $20–$200 monthly fees depending on features available and the types of transactions being processed.

How Much are Payment Processing Fees?

Depending on the payment processor they choose, e-commerce credit card processing can come with various fees.


Stripe charges a 2.9% + $0.30 fee per successful credit card charge. This fee applies to online and in-person transactions for Visa, Mastercard, American Express, Discover, and other supported payment options.

Stripe also charges a 1.5% fee for international payments such as Google Pay or Apple Pay.


PayPal has similar payment processing fees with a couple of differences. They charge a flat 2.99% + $0.49 fixed fee per successful credit card charge with an additional 1.5% per transaction when using PayPal’s currency conversion service (if applicable).

There may also be other costs when using PayPal’s merchant services, like accepting QR code transactions or Venmo payments.


Square offers a competitive pricing structure with their flat 2.6% + $0.10 fee per successful credit card charge plus an additional 1.5% if you use their instant transfers functionality—allowing merchants to receive funds within minutes instead of days.


Shopify offers tiered pricing models that vary based on what features you need from the platform and what type of product you’re selling (eCommerce store or retail shop).

The basic plan (which is ideal for small businesses or those with low volume sales)  starts at 2.9% + $0.30 fee per successful credit card charge along with an additional 0-2% depending on whether your customers check out through Shopify. 

Payments or another third-party processor such as Stripe or Paypal (note: this does not apply for brick-and-mortar stores).

Higher-tier plans offer lower rates. They go from 0% to 1%, which is better for high-volume e-commerce businesses that process thousands of orders each month and want to save on transaction costs.

Von Payments Can Help With Credit Card Processing for Your e-Commerce Businesses

Credit card processing services include authorizing, clearing, and settling payments, which are all crucial elements of running a successful online business.

If your business needs a reliable way to process credit cards, you should consider partnering with Von Payments for merchant accounts and streamlined payment processing services.

Von Payments offers PCI-compliant payment gateways and uses tokenization technology to ensure secure credit card transactions. Von Payments also provides fraud prevention tools to help protect businesses from unwanted chargebacks or fraudulent activity.

Our payment solutions are designed to be user-friendly, with easy API integrations into existing payment systems so your business can run seamlessly and without extra hidden fees.

With these features in mind, it’s no surprise that many businesses trust Von Payments as their merchant services provider—with reliable credit card processing solutions for eCommerce stores.

Contact us today to learn more.