Credit Card Processing and Merchant Account

What is the Credit Card Business and Who Makes Money Off Them

Kalle Radage — Wed, 05 Feb 2025 19:00:11 +0000

The credit card industry is one of the most profitable and complex financial sectors in the world. Credit cards are used by billions of people for everyday transactions, allowing them to make purchases without needing immediate cash.

However, behind every credit card swipe, there is a vast network of financial institutions, payment processors, and businesses that profit from the system. This article explores how the credit card business operates and who benefits financially from it.

Credit Card Market Size, Trends, and Key Statistics in Canada, the U.S., and Globally

The credit card industry is a significant component of the financial sectors in Canada, the United States, and globally. Understanding the market size in these regions provides insight into consumer behavior, economic trends, and the financial health of households.

Canada

In Canada, credit cards are a prevalent payment method. As of 2025, there are more than 100 million credit cards in circulation, with over 83.4% of Canadians aged 15 or older owning at least one credit card. This represents the highest percentage of credit card ownership globally.

In 2023, credit cards accounted for 33% of total payments in Canada, surpassing debit cards, which stood at 30%. The Canadian card payment market experienced a growth of 7.7% in 2024, reaching a total value of CAD 1.2 trillion. Visa dominates the Canadian market with a 58% market share.

United States

The United States has a substantial credit card market. As of the third quarter of 2024, Americans’ credit card debt reached $1.17 trillion, with balances increasing by $24 billion. Despite this rise, delinquency rates have slightly decreased to 8.8%, down from over 9% in the previous quarter, indicating potential relief as inflation eases.

In 2023, Americans charged $6.22 trillion to their Visa cards, making it the largest card processor in the United States. Mastercard followed, with consumers charging $2.59 trillion to their cards.

Global Perspective

Globally, the credit card industry is dominated by a few major players. Visa, UnionPay, and Mastercard process 96.8% of all credit card transactions worldwide. Visa has 4.48 billion active cards globally, while Mastercard has 2.94 billion. The four major U.S. processors—Visa, Mastercard, American Express, and Discover — facilitated $24.1 trillion in worldwide consumer transactions in 2023.

These statistics highlight the extensive reach and influence of credit cards in modern economies. While they offer convenience and purchasing power to consumers, the associated debt levels underscore the importance of responsible credit management and the need for financial literacy to navigate the complexities of credit usage.

How the Credit Card Business Works

At its core, the credit card business involves lending money to consumers and processing payments between buyers and sellers. When a customer uses a credit card, the transaction goes through multiple steps before the merchant receives the payment. The key players in this process include:

Cardholders – Individuals or businesses that use credit cards for purchases.
Merchants – Businesses that accept credit card payments in exchange for goods and services.
Issuing Banks – Issuing banks are financial institutions that provide credit cards to consumers and extend credit lines.
Acquiring Banks – Acquiring banks that work with merchants to process credit card transactions.
Payment Networks – Payment network companies such as Visa, Mastercard, American Express, and Discover that facilitate transactions between issuing and acquiring banks.
Payment Processors – Payment processing companies that manage the technical side of credit card transactions, ensuring payments are securely processed.

Each of these entities plays a crucial role in ensuring credit card transactions are smooth, secure, and profitable.

Who Makes Money in the Credit Card Industry?

Several entities generate revenue from the credit card business, each earning money in different ways:

1. Issuing Banks

Banks that issue credit cards to consumers make money primarily through:

Interest Charges – If a cardholder does not pay off their balance in full each month, the bank charges interest on the remaining amount. These interest rates are often high, making it a major source of income.
Annual Fees – Some credit cards come with annual fees, especially premium cards offering rewards and perks.
Late Fees and Penalties – Banks charge fees when cardholders miss payments or exceed their credit limit.
Interchange Fees – Banks earn a small percentage from every transaction made with a credit card.

2. Acquiring Banks

Merchants work with acquiring banks to process credit card payments. These banks earn money through:

Merchant Discount Fees – A percentage of each sale is deducted as a processing fee, which is shared between acquiring banks, issuing banks, and payment networks.
Account and Setup Fees – Some banks charge merchants setup and monthly fees for maintaining their accounts.

3. Payment Networks (Visa, Mastercard, etc.)

Visa, Mastercard, American Express, and Discover do not lend money to consumers but facilitate transactions between issuing and acquiring banks. They earn revenue through:

Transaction Fees – Each time a credit card is used, a small fee is charged to the merchant.
Licensing Fees – Banks pay fees to use these networks for issuing credit cards.

4. Payment Processors

Companies such as PayPal, Stripe, and Square handle the technology behind credit card transactions. They charge:

Processing Fees – A small percentage of each transaction is taken as a fee.
Additional Service Fees – Payment processors offer fraud protection, chargeback management, and other services for extra fees.

5. Merchants (Retailers, Online Stores, etc.)

Although merchants pay fees to accept credit cards, they can still benefit indirectly:

Increased Sales – Accepting credit cards can attract more customers and lead to higher transaction amounts compared to cash sales.
Loyalty and Rewards Programs – Many merchants partner with banks to offer co-branded credit cards, earning commissions and encouraging repeat business.

The Costs for Consumers

While businesses make money from credit cards, consumers often bear the hidden costs, including:

High Interest Rates – If balances are not paid in full, interest can accumulate quickly, leading to long-term debt.
Fees and Charges – Annual fees, late payment fees, and foreign transaction fees can add up.
Risk of Overspending – Easy access to credit can lead to financial trouble if not managed properly.

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ERP Integration with Payment Systems

Kalle Radage — Tue, 28 Jan 2025 00:28:34 +0000

Enterprise Resource Planning (ERP) systems are the backbone of many organizations, streamlining operations, centralizing data, and improving decision-making. Integrating payment systems with ERPs has become a strategic priority for large businesses and enterprises looking to enhance operational efficiency and deliver superior customer experiences.

This article explores the importance, benefits, and implementation of ERP-payment integration, supported by key facts and statistics.

The Case for ERP-Payment Integration

Payment processing is a key function for enterprises of all sizes. For large organizations, managing high transaction volumes across multiple channels and regions can be complex and time-consuming. By integrating payment systems with ERPs, enterprises can:

Automate Financial Processes: Manual data entry is prone to errors and delays. Integration automates processes such as invoicing, reconciliation, and reporting, saving time and reducing human error.
Enhance Data Visibility: Real-time synchronization between payment systems and ERPs ensures that financial data is always up-to-date, enabling better cash flow management and financial forecasting.
Improve Compliance: Integrated systems simplify compliance with industry regulations and tax requirements by standardizing and automating data handling.
Streamline Customer Experience: Seamless integration supports features like recurring billing, multi-currency transactions, and personalized payment options, enhancing customer satisfaction.

Market Trends and Statistics

The demand for ERP-payment integration is growing rapidly as enterprises recognize its value. Consider these key statistics:

ERP Market Growth: The global ERP market is projected to reach $117.09 billion by 2030, growing at a CAGR of 9.1% from 2022 to 2030.
Payment Processing Expansion: The global payment processing solutions market is expected to grow to $150 billion by 2030, driven by e-commerce and digital payments.
Integration Adoption: A recent survey by Statista found that 72% of enterprises with ERP systems plan to invest in payment integration within the next two years.
Efficiency Gains: According to Deloitte, businesses that integrate ERP and payment systems report a 35% reduction in reconciliation times and a 25% improvement in overall financial process efficiency.

Benefits of ERP-Payment Integration

Integrating ERP systems with payment platforms offers enterprises a competitive edge by streamlining operations, enhancing financial accuracy, and improving scalability. Below are some key benefits that highlight why this integration is a game-changer for businesses:

1. Operational Efficiency

Integrated systems eliminate the need for manual data transfers between payment platforms and ERPs. This reduces administrative workloads and accelerates financial processes. For example, an enterprise with integrated systems can reconcile hundreds of daily transactions in minutes rather than hours.

2. Enhanced Financial Accuracy

By automating data flows, integration minimizes discrepancies in financial records. Accurate, real-time data supports better decision-making and reduces the risk of costly errors, such as double billing or missed payments.

3. Scalability

As businesses grow, so do their transactional complexities. Integrated systems can handle higher transaction volumes and diverse payment methods without additional manual effort, making them ideal for scaling operations.

4. Improved Customer Experiences

Integration enables features like one-click payments, subscription billing, and multi-currency support. These capabilities cater to customer preferences, fostering loyalty and repeat business.

Steps to Implement ERP-Payment Integration

Implementing ERP-payment integration requires a strategic approach to ensure seamless functionality and maximum benefits. By following a structured process, enterprises can address unique business needs, avoid common pitfalls, and achieve successful outcomes. Below are the key steps to guide this integration:

1. Assess Business Needs

Identify the specific challenges and goals your organization aims to address through integration. This could include reducing reconciliation times, enabling multi-currency transactions, or improving reporting accuracy.

2. Choose the Right Payment Processor

Select a payment processor that supports ERP integration and aligns with your business needs. Look for features like multi-platform support, robust security measures, and scalability.

3. Ensure Compatibility

Verify that your ERP system and payment processor can integrate seamlessly. Most leading ERP providers like SAP, Oracle, and Microsoft Dynamics offer APIs or connectors for payment systems.

4. Develop a Clear Implementation Plan

Work with your IT team and integration partners to outline a step-by-step implementation process. This should include testing phases, staff training, and contingency plans for potential issues.

5. Monitor and Optimize

After implementation, continuously monitor the performance of your integrated systems. Gather feedback from users, track key metrics, and make adjustments to ensure optimal performance.

Conclusion

ERP integration with payment systems is more than a technological upgrade; it’s a strategic move that enhances efficiency, accuracy, and customer satisfaction. As enterprises navigate an increasingly digital and competitive landscape, this integration will be a cornerstone of operational success. With market trends indicating rapid adoption, now is the time for businesses to invest in this transformative capability.

If you’re exploring ERP-payment integration for your enterprise, partnering with a payment processor experienced in enterprise solutions can make all the difference. Contact us today to learn how we can support your journey to seamless integration and sustained growth.

Get the best ERP integration with payment systems with Clearly Payments

Wide range of supported industries
Fast funding
A full set of payment products to accept payment anytime, anywhere
World-class customer service

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Modernizing Government Payment Systems for Efficiency and Trust

Kalle Radage — Tue, 21 Jan 2025 18:54:11 +0000

Government agencies face mounting pressure to provide efficient, secure, and accessible payment options for their services, agencies, and constituents.

Old payment systems are more than just an inconvenience — they’re a liability. Every paper-based transaction or manual process is a missed opportunity to cut costs, improve security, and serve citizens better. In an age where private businesses offer seamless, one-click payments, why should anyone settle for systems that frustrate users and waste dollars? It’s time to rethink, retool, and revolutionize the way payments are handled in the public sector.

The shift from traditional payment methods to modern digital solutions is no longer optional; it is essential for delivering public services effectively and meeting citizen expectations.

Challenges in Government Payment Processing

Government agencies manage a diverse range of payment types, including tax payments, permit fees, licensing, utility bills, and fines. Despite the volume and variety, many still rely on outdated systems that pose significant challenges:

Inefficiency: Legacy systems often require manual intervention, increasing the time and cost of processing payments.
Security Risks: Older systems are more vulnerable to cyber threats, putting sensitive citizen data at risk.
Limited Payment Options: Many government platforms still lack support for modern payment methods like mobile wallets, credit cards, and digital banking.
Inaccessibility: Outdated interfaces can create barriers for citizens with disabilities or limited digital literacy.
Compliance Issues: Governments must adhere to strict regulations like PCI DSS, which can be difficult with aging systems.

The Case for Modernizing Payment Systems

Modernizing payment processing systems can unlock a host of benefits for government agencies:

Enhanced Efficiency: Automated processes reduce manual errors, speed up payment reconciliation, and lower operational costs.
Improved Citizen Satisfaction: Offering multiple payment methods and user-friendly platforms ensures convenience and accessibility for all citizens.
Stronger Security: Advanced encryption, tokenization, and fraud detection protect sensitive data and bolster public trust.
Regulatory Compliance: Modern platforms come pre-configured to meet standards like PCI DSS, GDPR, and local regulations.
Data Insights: Digital systems provide real-time analytics, helping governments make informed decisions and improve resource allocation.

Key Statistics on Government Payments

Citizen Expectations: According to a 2024, 78% of citizens prefer paying government fees online when given the option.
Efficiency Gains: Digital payment systems reduce processing costs by an average of 40%, as reported by the Government Finance Officers Association (GFOA).
Fraud Reduction: Modern payment systems can lower fraud rates by up to 60% through advanced security measures like AI-based monitoring.
Environmental Impact: Transitioning to paperless billing and payment methods can reduce administrative waste by 70%.

Features Government Agencies Should Look For

When upgrading payment systems, government agencies should prioritize the following features:

Multiple Payment Channels: Support for credit/debit cards, ACH transfers, mobile payments, and alternative methods like cryptocurrencies.
Seamless Integration: The platform should integrate easily with existing financial and ERP systems.
Accessibility: Ensure compliance with WCAG guidelines for users with disabilities.
Scalability: The system must handle peak traffic during tax seasons or major events without performance degradation.
Real-Time Processing: Instant payment confirmation enhances transparency and citizen trust.
Robust Reporting: Detailed dashboards and customizable reports simplify audit preparation and financial planning.

Government Payment System Examples

Here is a collection of examples showcasing how governments can use credit card payments and other modern payment methods to streamline processes, enhance citizen satisfaction, and reduce operational costs.

Example 1: Streamlining Tax Payments

A state revenue department in the United States revamped its tax collection process by adopting a digital payment platform. The new system allowed taxpayers to pay via credit cards, ACH transfers, or mobile wallets. With real-time confirmation and a user-friendly interface, the department reduced submission errors and increased on-time payments by 25% in the first year. Administrative costs dropped significantly due to automated reconciliation processes.

Example 2: Municipal Utility Billing

A Canadian city digitized its utility billing system to provide more payment options and streamline collections. By introducing online portals, mobile payments, and automated reminders, the city reduced paper waste and improved cash flow.

Citizens appreciated features like recurring payment options and easy access to billing history, while the city reported a 50% reduction in administrative expenses.

Example 3: National Park Permit System

A federal agency managing national parks in North America implemented an online permit application and payment system. Visitors could apply for permits and pay fees digitally, reducing paperwork and long queues. The scalable system handled peak-season demand efficiently, improving visitor satisfaction and enabling the agency to allocate resources more effectively based on data insights.

Example 4: Parking and Traffic Fines

A metropolitan government in the United States updated its payment system for parking and traffic fines, incorporating mobile payment apps and QR code-based payment options.

This upgrade made it easier for residents to pay fines promptly, reducing late payments by 30%. Automated reminders and a robust analytics dashboard helped the city monitor trends and optimize enforcement strategies.

Example 5: Social Services Disbursements

A provincial government in Canada modernized its social services disbursement process by offering direct deposit and reloadable payment cards. This digital approach replaced paper checks, ensuring faster and more secure transactions. Real-time tracking and fraud detection improved trust in the system, while administrative overhead was significantly reduced.

Clearly Payments: Your Partner in Transformation

At Clearly Payments, we specialize in helping government agencies modernize their payment processing systems. Our tailored solutions are designed to meet the unique needs of public-sector clients:

Security First: We ensure full compliance with PCI DSS and other regulatory frameworks.
Custom Integrations: Our solutions seamlessly integrate with legacy systems, minimizing disruption.
Cost-Effective: We provide transparent pricing to help governments maximize their budgets.
Dedicated Support: Our team offers round-the-clock support to address any challenges.

Get the best payment systems for government with Clearly Payments

Wide range of supported industries
Fast funding
A full set of payment products to accept payment anytime, anywhere
World-class customer service

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The Hidden Costs of Payment Processing No One Talks About

Kalle Radage — Wed, 15 Jan 2025 18:41:04 +0000

If you run a business, you’re aware of the basic fees for accepting credit card payments. You might even know that there’s something called an “interchange fee,” usually around 1.5%–3.5% depending on the credit card. However, what many merchants don’t realize is that there can be a whole range of extra, often hidden costs buried in their processing agreements. These hidden costs can eat into profits and complicate the bottom line.

In this article, we’ll walk you through the not-so-obvious side of payment processing, covering everything from seemingly small charges like statement fees to big hits like chargeback fees. We’ll also dive into facts, stats, and figures that show just how important it is to get a handle on these costs.

Why Payment Processing Fees Matter

1. Impact on Profits
Every additional fee you pay comes straight out of your net income. According to a 2024 report, over 90% of small businesses are paying more in processing fees than they initially expect. Even a 0.5% increase in fees can mean thousands of dollars lost each year for a business making steady credit card sales.

2. Complexity of Fee Structures
Payment processing isn’t just about a simple percentage cut of sales. Different card brands (Visa, Mastercard, American Express, Discover) have different rates, which can vary by transaction type (in-store, online, phone orders) or industry. On top of that, your payment processor might add extra fees that aren’t always clearly explained.

3. Customer Expectations
In 2024, around 82% of American consumers preferred to pay by card, digital wallet, or other electronic means, according to a Federal Reserve survey. If you’re not offering seamless payment options, you might lose out on sales. But enabling these options can come with hidden expenses you need to understand.

The Many Types of Payment Processing Fees

Below is a breakdown of the lesser-known or “hidden” fees that can show up on your monthly statements:

Interchange Fees
- What It Is: The fee paid to the card-issuing bank every time a customer buys something with a credit or debit card.
- Cost Range: Usually 1.5%–3.5% of the transaction total, plus a fixed charge (often $0.10–$0.30).
- Why It’s Hidden: While some merchants know about interchange, they might not know that these rates vary widely by card type, transaction method, and even how you “code” your business (MCC code). Here is an overview of interchange fees in the USA and also interchange fees in Canada.
Assessment Fees
- What It Is: Charged by the card networks (Visa, Mastercard, etc.) on top of interchange fees.
- Cost Range: Typically a small percentage (0.13%–0.15%) of each transaction.
- Why It’s Hidden: This fee is often lumped together with interchange or grouped under generic descriptions.
Processor Markup
- What It Is: The payment processor’s own cost on top of interchange and assessment fees.
- Cost Range: Varies significantly; could be as low as 0.1% or as high as 1% or more.
- Why It’s Hidden: Many merchant statements aren’t clear about how much of the fee is interchange vs. the processor’s markup.
Monthly or Annual Fees
- What It Is: Some processors charge a flat monthly fee for services like payment gateway access or account maintenance.
- Cost Range: Could be $10–$40 per month or more.
- Why It’s Hidden: It might be labeled under generic terms like “service fee” or “account fee,” making it easy to overlook.
Gateway Fees
- What It Is: Fees paid to the payment gateway provider if you accept online payments. The gateway is the digital equivalent of a credit card terminal.
- Cost Range: Typically $5–$25 per month, plus a small per-transaction fee.
- Why It’s Hidden: Some processors include the gateway fee in a bundle, so it doesn’t stand out separately.
PCI Compliance Fees
- What It Is: A fee for ensuring your business complies with Payment Card Industry (PCI) security standards.
- Cost Range: About $100–$200 per year, sometimes more.
- Why It’s Hidden: Often listed as an “annual compliance fee” or “security fee,” and merchants sometimes aren’t aware they can shop around for lower compliance service costs.
Address Verification Service (AVS) Fees
- What It Is: AVS is an extra layer of fraud protection that checks the billing address entered by the customer.
- Cost Range: Often $0.01–$0.10 per transaction.
- Why It’s Hidden: This small per-transaction fee might not seem like much, but for a high-volume business, these costs add up quickly.
Non-Qualified Transaction Fees
- What It Is: Some processors classify certain transactions as “non-qualified,” usually if they lack full data, or if they’re rewards cards. The processor charges a higher rate.
- Cost Range: An extra 1%–3% above the regular rate.
- Why It’s Hidden: Merchants often don’t realize they can optimize their transaction data or use a different plan to avoid these fees.
Chargeback Fees
- What It Is: Chargebacks are charged when a cardholder disputes a transaction. You pay this fee whether or not you win the dispute.
- Cost Range: Typically $15–$40 per chargeback, plus the cost of the refund.
- Why It’s Hidden: You might expect to refund the purchase amount, but the additional fee for the chargeback itself can be surprising.
Early Termination Fees
- What It Is: A penalty for canceling your contract with the payment processor before the agreed-upon term ends.
- Cost Range: Anywhere from $200–$500 or more.
- Why It’s Hidden: Buried in contract fine print, making it easy for merchants to overlook when signing up.

Eye-Opening Stats and Figures

$2,400 per Year in Hidden Fees: The average small business loses about $2,400 annually to hidden payment processing fees.
90% of Merchants Overpay: 9 out of 10 merchants end up overpaying due to complex pricing models.
Chargeback Costs Beyond Fees: Chargebacks can cost merchants an average of $40 per dispute once you factor in administrative time and lost product. This doesn’t even include damage to relationships with the card networks.
Fraud and Security: In 2024, online payment fraud rose by 14%, according to the Nilson Report, pushing more merchants to invest in fraud protection tools—which can come with additional monthly or per-transaction fees.

How to Identify and Reduce Hidden Costs

Audit Your Statements
- What to Look For: Carefully check each line item on your monthly statements. Look for unfamiliar terms like “PCI non-compliance fee,” “gateway fee,” or “batch fee.”
- Tip: If you’re unsure, call your processor and ask them to explain every single line.
Compare Different Pricing Models
- Tiered Pricing: You pay different rates for qualified, mid-qualified, and non-qualified transactions. This model can be confusing.
- Interchange-Plus Pricing: You pay the actual interchange fee plus a transparent markup. The interchange plus pricing model is often more predictable.
- Flat Rate Pricing: In flat rate pricing, you pay a single percentage and transaction fee, making budgeting simpler but often not the cheapest option.
Negotiate with Your Processor
- Fact: According to a 2023 survey, about 65% of merchants who negotiate are able to lower at least one fee.
- What to Negotiate: Monthly fees, early termination fees, and even the processor’s markup. You can also ask if they’ll waive setup fees.
Maintain PCI Compliance
- Why It Matters: Non-compliance fees can be high, and a data breach can be devastating. By keeping up with security standards, you avoid monthly or annual penalties.
- Tip: Complete your annual Self-Assessment Questionnaire (SAQ) to ensure you meet PCI requirements.
Use AVS and CVV Tools Wisely
- Benefit: These tools help reduce fraud and chargebacks, which saves money in the long run.
- Cost: While each AVS check might cost a few cents, it’s worth it to avoid a $40 chargeback fee.
Optimize Interchange Categories
- What It Is: Ensuring you send as much data as possible with each transaction so it qualifies for the lowest interchange rate.
- Example: For B2B and B2G (government) transactions, providing additional data like invoice numbers and purchase order info can lower your rates.
Watch for Contract Lengths and Auto-Renewals
- Why It Matters: Processors sometimes auto-renew contracts if you don’t cancel by a certain date, locking you in for another year of fees.
- Tip: Mark your calendar so you can renegotiate terms before the contract renews.

The Bigger Picture: Why Transparency Matters

The fees you pay in payments have a direct impact on your pricing, your margins, and your customer experience. By insisting on transparent pricing models and carefully reviewing your statements, you can protect your profits and potentially invest the savings back into your business.

Remember:

A small difference in fees (say, 0.5%) can lead to thousands of dollars in savings over the course of a year, especially if you have high sales volume.
Regular audits and comparisons of providers help ensure you’re not getting locked into a bad deal.
Staying educated about industry trends and security requirements can help you avoid surprise fees and penalties.

The post The Hidden Costs of Payment Processing No One Talks About appeared first on Credit Card Processing and Merchant Account.

What 500 Businesses Told Us About Their Payment Preferences

Kalle Radage — Tue, 14 Jan 2025 15:30:25 +0000

With so many payment options available — from credit cards to mobile wallets — it can be hard to know which methods are the best fit for you and your customers.

At Clearly Payments, we wanted to learn more about how businesses really feel about accepting payments. So, we asked 500 businesses, ranging from small startups to larger established companies, about their payment preferences.

Below, we’ll share the major insights we learned. We’ll cover the most popular payment methods, the biggest frustrations businesses face, and where the payment industry seems to be heading.

Why We Asked 500 Businesses About Payments

Payments are the lifeblood of a business. If your payment system isn’t smooth, you can lose sales and create a poor experience for your customers. Accepting payments is not just about taking money; it’s about making the process easy, reliable, and safe.

By surveying 500 businesses across different industries — like retail, hospitality, technology, and professional services — we aimed to get a complete picture of their payment needs and experiences.

We asked questions such as:

Which payment methods do you accept?
Which methods do your customers prefer?
What are your biggest payment challenges?
What are you looking for in a payment processor?

Our findings gave us a clearer idea of how businesses think about payments, and we hope it helps you make better decisions for your own business too.

The Most Popular Payment Methods

1. Credit and Debit Cards

The majority of businesses we spoke with accept both credit and debit cards. 85% of them said these are the main payment methods for their customers. Many pointed out that people are used to paying by card because it’s quick, easy, and widely accepted. However, businesses also mentioned they pay fees for every card transaction, and some smaller companies said the cost of fees can sometimes be high.

2. Cash

Cash is still around, but its use is decreasing quickly for most businesses. About 60% of the surveyed businesses still accept cash, mainly because it’s simpler in some cases, and some older customers still prefer it. But a growing number of businesses — especially those online — have dropped cash altogether because it doesn’t make sense for their operations.

3. Mobile Wallets

Digital payment methods like Apple Pay, Google Pay, and Samsung Pay have grown quickly. About 45% of businesses now accept some form of mobile wallet payment. Many businesses told us they added mobile wallets to make payments easier and faster for customers, especially if their customers are tech-savvy. For businesses with younger audiences, mobile wallets are becoming a must-have option.

4. Online Payment Platforms

Online payment platforms are a key part of eCommerce. Nearly every business that sells products or services online uses a third-party payment platform or payment gateway. About 70% of businesses in our survey said they have integrated at least one digital payment platform, others have several. They do this to reduce friction at checkout and make payment simpler for customers who already have accounts on those platforms.

5. ACH & Bank Transfers

Some businesses, especially those in B2B (business-to-business) sectors, rely on bank transfers like ACH payments or wire transfers. About 30% of the surveyed businesses said they regularly accept payments through direct bank transfer. The main reason is to lower transaction costs and handle larger sums of money more securely. However, this method is slower to process compared to credit card transactions, which can cause delays in receiving funds.

Top Payment Challenges

1. Fees and Costs

The number one concern for businesses of all sizes is the cost of accepting payments. Fees can really eat into a business’s profits, especially for smaller companies and those with razor-thin margins. Some businesses said they’re willing to pay a bit more in fees if they can get better service, advanced technology, and a smoother experience for their customers. But overall, cost is still the biggest pain point. Here is more about payment processing fees. Here are some ideas of how merchants are lowering their payment fees.

2. Security and Fraud

With the rise of online shopping, some businesses worry about fraud and the costs associated with fraudulent transactions. Chargebacks — when customers dispute a payment—can also be expensive and time-consuming. Businesses want a payment partner that protects them from fraud while giving them fast and simple ways to handle chargebacks when they happen.

3. Technology Integration

Many businesses use multiple systems — like eCommerce platforms, accounting software, and CRM tools — to run their operations. They want a payment processor that integrates with these systems without causing technical headaches. Some mentioned they’ve tried solutions in the past that required complicated setups or repeated data entry, which cost them a lot of time and money.

4. Customer Experience

Businesses know that a smooth payment process boosts customer satisfaction and loyalty. If the payment process is slow, complicated, or feels unsafe, customers might look elsewhere. One key challenge businesses mentioned is finding a balance between security measures (like extra verification steps) and a quick, hassle-free checkout.

Payment Features Businesses Want

From our discussions, we noticed a few key features that businesses are looking for in a payment processor:

Competitive Rates
Businesses want lower transaction fees and transparent pricing structures. They don’t like hidden fees or unexpected charges. This is why so many merchants are moving to Clearly Payments.
Seamless Integrations
Whether it’s with accounting software like QuickBooks, eCommerce platforms like Shopify, or customer management tools, businesses want everything to fit together smoothly.
Strong Security Measures
Payment security is more important than ever. Tools like tokenization, encryption, and secure customer data storage can build trust.
Easy Setup and Onboarding
Many businesses switch providers if the setup is too complicated or if they run into issues when adding new payment methods.
Good Customer Support
Quick and helpful support can make a world of difference when payment issues pop up. Businesses appreciate 24/7 support, clear documentation, and a responsive team.

How Different Industries Compare

While the survey covered a wide range of businesses, we noticed some trends based on industry:

Retail & Hospitality: Most emphasize credit/debit cards and mobile wallets. These sectors prioritize speed and customer experience.
Professional Services: Many rely on invoices and ACH bank transfers for bigger payments. Many also accept credit cards, but they often focus on cost-effective methods to handle large sums of money.
Online Businesses & Tech Startups: Tend to have multiple digital payment options, from PayPal to Stripe. They usually want easy integrations with their websites or apps.
Nonprofits: Focus on cost-saving measures, as high transaction fees cut into donations. They also appreciate user-friendly donation pages that make giving simple.

Tips for Choosing the Right Payment Processor

Evaluate Your Needs
Think about your sales channels (in-person, online, mobile, or a mix) and the payment methods your customers prefer. This will help you shortlist potential processors that fit your business model.
Compare Fee Structures
Look at transaction rates, monthly fees, setup fees, and any hidden costs. It can help to estimate how much you’ll pay in fees each month or each year based on your sales volume.
Assess Security Measures
Check if the processor offers advanced security features like PCI compliance, tokenization, and encryption. These measures can protect both your business and your customers’ data.
Check Integrations
If you rely on certain eCommerce platforms, accounting software, or CRM tools, make sure the payment processor you choose can connect to them easily.
Customer Support Matters
You’ll likely need help at some point, whether it’s about chargebacks, system setups, or general inquiries. Look for a processor with solid reviews on customer service.
Think About Growth
As your business grows, you’ll want to add more features or enter new markets. Choose a payment provider that can scale with you.

Where Does Clearly Payments Fit In?

At Clearly Payments, our goal is to create a payment solution that’s both affordable and easy to use. We understand how important it is for your business to accept payments without worrying about hidden fees or outdated systems. That’s why we offer:

Transparent, Competitive Rates: We believe in clear pricing without surprises.
Flexible Integrations: We work hard to ensure you can connect our payment services with the platforms you already use.
Robust Security: We use the latest security features to keep both you and your customers safe.
Dedicated Customer Support: We’re here to help every step of the way, from setting up your account to dealing with chargebacks or technical issues.

We’ve taken the feedback from these 500 businesses to heart. We want to keep improving our platform so we can help you accept payments in the way your customers expect—quickly, securely, and with minimal hassle.

Get the best payment systems with Clearly Payments

Wide range of supported industries
Fast funding
A full set of payment products to accept payment anytime, anywhere
World-class customer service

The post What 500 Businesses Told Us About Their Payment Preferences appeared first on Credit Card Processing and Merchant Account.

Credit Cards vs. Crypto: What’s Winning in 2025

Kalle Radage — Thu, 09 Jan 2025 03:51:28 +0000

In the world of payments, two forces are shaping how we exchange money: credit cards and cryptocurrencies. Both methods have evolved since their inception.

Credit cards were introduced in the 1950s as a convenient way to make payments without cash. Cryptocurrencies, on the other hand, burst onto the scene in 2009 with the launch of Bitcoin and have seen explosive growth ever since. As we move further into 2025, the debate continues: which form of payment is winning in terms of popularity, market share, security, and user trust?

In this article, we compare credit cards and cryptocurrencies from multiple angles, including user adoption, transaction volumes, security, and global market values in 2025.

Market Overview of Crypto and Credit Cards

The global payments industry has evolved at a fast pace and credit cards and cryptocurrencies are two of the major players vying for top positions. While credit cards have a long history and broad acceptance, cryptocurrencies have surged in popularity due to their innovative technology and potential for rapid growth.

Credit Card Market

Global Credit Card Transactions: According to recent estimates, the total volume of credit card transactions worldwide is projected to reach USD 36 trillion in 2025. This is an increase from around USD 22 trillion in 2020 and reflects a growing trend toward cashless payments.
Number of Credit Cards in Circulation: By the end of 2025, financial analysts expect there to be over 15 billion credit cards in circulation globally, up from around 11 billion in 2020. This includes both traditional credit cards and co-branded cards offered by airlines, retail stores, and technology companies.
Card Penetration and Usage: Credit cards remain most popular in North America, Western Europe, and parts of Asia, where over 70% of adults have access to at least one credit card. In emerging markets, penetration rates are smaller but growing steadily.

Cryptocurrency Market

Market Capitalization: The global cryptocurrency market capitalization is estimated to hover between USD 3 trillion and USD 5 trillion in 2025, depending on market conditions and regulatory developments. This is a significant rise from the roughly USD 250 billion to USD 1 trillion range seen in the late 2010s and early 2020s.
Number of Cryptocurrencies: There are now over 10,000 cryptocurrencies, although only the top 20 hold a substantial share of the market. Bitcoin, Ethereum, Binance Coin, and several others remain the largest by market cap.
Global Adoption Rate: As of 2025, around 8-10% of the global adult population owns some form of cryptocurrency, up from an estimated 1-2% in 2018. Cryptocurrencies have seen increasing acceptance by large retailers, payment providers, and cross-border remittance services. As of 2025, it’s estimated that over 85% of retailers worldwide accept credit cards in some form. Roughly 25% of online retailers accept crypto, but low single digits for physical stores.

Transaction Volumes and Growth

Despite the emergence of newer payment methods, credit cards have managed to keep their strong position in the global financial ecosystem.

Credit Card Transaction Volumes

The number of credit card transactions reached over 500 billion in 2024, with an average annual growth rate of around 8% from 2020 to 2025. Factors such as digital wallets, e-commerce, and the shift away from cash due to convenience and safety concerns have all contributed to this growth.

Cryptocurrency Transaction Volumes

Cryptocurrency transaction volumes have grown at a much faster rate than credit card transactions, although they still remain smaller in absolute terms.

Total Daily Transactions: By 2025, Bitcoin’s daily transactions often exceed 500,000, while Ethereum’s daily transactions have climbed to over 1 million due to various applications like decentralized finance (DeFi) and non-fungible tokens (NFTs).
Average Growth Rate: From 2020 to 2025, on-chain transactions for major cryptocurrencies have seen an average growth rate of 25-30% annually, reflecting the increasing utility of digital assets in both retail and institutional settings.

User Adoption and Accessibility

When it comes to gaining a foothold in the global payments market, how easily and widely people can use a particular method is crucial. Credit cards have long been the gold standard, reaching billions of users through banks, retailers, and loyalty programs.

Cryptocurrencies, on the other hand, are redefining access in places where traditional banking might be limited, offering an alternative approach to cross-border transactions and financial services.

Credit Card Popularity

Credit cards remain a popular choice because they are widely accepted in brick-and-mortar stores, online shops, and for international payments. Other key factors include:

Consumer Protection: Most credit cards come with fraud protection and the ability to dispute charges, building trust among users.
Rewards and Incentives: Cash-back offers, travel miles, and loyalty programs encourage repeated card usage.
Credit Building: Using a credit card responsibly can help individuals build a good credit score, leading to easier access to loans or mortgages.

Crypto’s Expanding Reach

Cryptocurrencies have gained traction as more people become comfortable with digital assets, especially in regions with less stable traditional banking systems. Key drivers of crypto adoption include:

Lower Transaction Fees: International transfers in cryptocurrencies can be cheaper than wire transfers or credit card cross-border fees.
Financial Inclusion: Cryptocurrencies offer an alternative financial system for the unbanked population, particularly in developing countries.
Rapid Technological Innovation: The rise of DeFi, NFTs, and various blockchain-based solutions continues to draw in new users.

Security and Regulation in Crypto & Credit Cards

Effective security measures and clear regulations are vital for building user confidence and ensuring fair practices in both credit cards and cryptocurrency transactions.

Credit Card Security

Chip Technology and Tokens: In many parts of the world, credit cards now come with EMV chip technology, which greatly reduces fraud by making it harder to duplicate card information.
Tokenization: Tokenized payments, especially through digital wallets, mask card details, adding an extra layer of protection.
Ongoing Threats: Despite technological improvements, credit card fraud still costs the global economy around USD 30 billion annually, and this figure is expected to rise to USD 40 billion by 2026 if not addressed comprehensively.

Crypto Security and Regulation

Blockchain Security: Transactions on major blockchains are considered secure due to cryptographic methods. Once verified, they are nearly impossible to alter.
Cyber Attacks and Scams: However, cryptocurrency holders can fall victim to phishing scams, exchange hacks, and other forms of cybercrime. In 2025, cyber theft related to cryptocurrencies is estimated at USD 4-5 billion annually.
Regulatory Environment: Regulators worldwide have taken a more active role in overseeing crypto activities. By 2025, many countries have introduced frameworks to govern crypto exchanges, initial coin offerings (ICOs), and stablecoin issuers. This regulation boosts consumer confidence but also increases operational costs for crypto-based companies.

Tech Innovations

Credit Card Innovations

In order to stay competitive and address security concerns, credit card companies have rolled out several technological advancements:

Biometric Authentication: Some newer credit cards feature biometric fingerprint authentication for enhanced security.
Dynamic CVV Codes: Cards with electronic displays that update the three-digit security code (CVV) at regular intervals.
Smartphone Integration: Digital wallets (e.g., Apple Pay, Google Pay) allow users to store multiple credit cards and pay using smartphones or wearables.

Crypto Advancements

The crypto space continues to be a hotbed of innovation:

Layer-2 Solutions: To address network congestion and high fees, layer-2 protocols like Bitcoin’s Lightning Network and Ethereum’s Optimistic Rollups offer faster and cheaper transactions.
Decentralized Finance (DeFi): Decentralized exchanges, lending protocols, and yield-farming platforms make it possible to earn interest or borrow funds without intermediaries.
Cross-Chain Interoperability: New technologies facilitate transactions between different blockchains, expanding the utility and liquidity of digital assets.

Cost and Fees

Credit Card Fees: Merchants often pay 2-3% in transaction fees for credit card purchases. Some premium cards may charge annual fees of USD 100 or more to cardholders, though the rewards can offset these costs.
Crypto Fees: Cryptocurrency networks typically charge miners’ fees or gas fees, which can vary greatly depending on blockchain traffic. On Bitcoin or Ethereum, these fees can range from a few cents to USD 50 or more during peak congestion. However, newer blockchains and layer-2 solutions aim to maintain minimal fees of well under USD 1 per transaction, some even at about 1 cent.

Consumer Trust and Perception

Credit Cards: Trusted for decades, supported by banks, and widely accepted, credit cards benefit from a strong reputation and consumer protections. However, concerns over personal debt and hidden charges linger.
Cryptocurrencies: While increasingly recognized, cryptocurrencies still face skepticism regarding price volatility and unclear regulation. Consumer trust has been growing steadily but remains below that of traditional banking systems.

The Verdict: Who’s Winning in 2025?

Deciding who is “winning” between credit cards and crypto in 2025 depends largely on the criteria used:

Total Transaction Volume: Credit cards are still ahead with over USD 36 trillion in global transactions. Crypto, while growing rapidly, handles much less in overall retail volume when compared to traditional finance (tradfi).
Growth Rate: Cryptocurrencies outpace credit cards in terms of percentage growth, with transaction volumes rising over 25% annually. This suggests a significant shift in the payments ecosystem, although from a smaller base.
Global Acceptance: Credit cards remain the most accepted payment method worldwide, but the acceptance of crypto has spread to more than 30% of large retailers in developed countries—an important milestone. The average merchant and small merchants rarely support credit cards yet.
Security and Regulation: Credit cards enjoy mature security features and established regulations, whereas crypto benefits from blockchain’s inherent security but remains more vulnerable to hacking and scams. Both face ongoing regulatory challenges.
Innovation: Crypto leads in innovation with decentralized finance, smart contracts, and rapid technological advancement. Credit cards maintain steady improvements in convenience and security.

In short, credit cards definitely remain the dominant force in everyday commerce due to their broad acceptance, consumer protections, and long-standing trust. However, cryptocurrencies are gaining ground, especially in cross-border payments, as an investment vehicle, and in new areas of the digital economy. The gap between the two is narrower than ever before, and continued technological developments may shape a future in which both coexist in a more balanced way.

The post Credit Cards vs. Crypto: What’s Winning in 2025 appeared first on Credit Card Processing and Merchant Account.

Adding eCommerce Payments to your WordPress Website

Kalle Radage — Thu, 02 Jan 2025 17:22:20 +0000

If you’ve ever thought about selling products or services online, adding eCommerce payments to your WordPress website is an essential step. It’s easier than you might think, and with the right tools, you can start accepting payments in no time.

Whether you’re launching a new store or enhancing an existing site, this guide will help you understand how to set up and manage eCommerce payments.

Why Add eCommerce Payments?

Adding eCommerce payments allows your website visitors to buy products or services directly from your site. This increases convenience for your customers and opens up opportunities for you to grow your business. With online payments, you can:

Reach a global audience
Simplify the buying process
Offer multiple payment methods, such as credit cards, PayPal, or even cryptocurrency
Increase revenue by operating 24/7

Step-by-Step Guide to Adding Payments

Follow the below steps to get online payments running on your wordpress website. You can also reach out directly to Clearly Payments for help.

Step 1: Choose the Right eCommerce Plugin

WordPress is highly versatile, and its plugins make it easy to add eCommerce functionality. The most popular plugins for eCommerce are:

WooCommerce: Free, open-source, and highly customizable, WooCommerce is the most widely used WordPress eCommerce plugin.
Easy Digital Downloads: Great for selling digital products like eBooks, software, or music.
WPForms: If you use wordpress, this plugin lets you integrate forms and simple eCommerce solutions into your WordPress site.

To install a plugin:

Go to your WordPress dashboard.
Click on “Plugins” > “Add New.”
Search for your chosen plugin, click “Install,” and then “Activate.”

Step 2: Set Up Your Store

Once your plugin is activated, follow these steps to set up your store:

Add Products:
- Navigate to the plugin settings (e.g., WooCommerce > Products).
- Click “Add New” and input details such as product name, description, price, and images.
Organize Categories:
- Create categories for better navigation. For example, if you sell clothing, use categories like “T-shirts,” “Jeans,” and “Accessories.”

Step 3: Configure Payment Gateways

Payment gateways process payments from your customers and transfer the funds to your account. Common options include:

Clearly Payments: Accepts credit cards and digital wallets like Apple Pay and Google Pay. This is good for businesses processing more than $150k per year.
Stripe: Accepts credit cards and digital wallets like Apple Pay and Google Pay. This is good for businesses processing less than $150k per year.
PayPal: A trusted and widely used platform for secure payments.

To configure a payment gateway in WooCommerce:

Go to “WooCommerce” > “Settings” > “Payments.”
Select the payment gateway you want and follow the setup instructions. You may need to create an account with the payment provider.

Step 4: Secure Your Website

Security is crucial when handling payments. Here’s how to protect your site and your customers:

Install an SSL Certificate:
- This encrypts data and ensures your site uses HTTPS. Most web hosts offer free SSL certificates.
Keep Plugins Updated:
- Regular updates prevent vulnerabilities.
Use Secure Hosting:
- Choose a reliable hosting provider with strong security measures.
Enable Two-Factor Authentication (2FA):
- Protect your WordPress admin panel with an extra layer of security.

Step 5: Test Your Checkout Process

Before going live, test your checkout process to ensure it’s working smoothly. Use test mode in your payment gateway to simulate transactions. Check for:

Easy navigation
Accurate pricing and taxes
Functional payment options
Clear confirmation messages and emails

Step 6: Optimize for Mobile

Most customers shop on their phones, so your site must be mobile-friendly. Use a responsive theme and test your site’s layout on different devices. Also, ensure your payment process is quick and easy to complete on a small screen.

Enhancing the Customer Experience

To create a seamless shopping experience, consider these tips:

Offer Multiple Payment Methods:
- Cater to different preferences by enabling several payment options.
Use Clear Call-to-Actions (CTAs):
- Guide users to purchase with CTAs like “Buy Now” or “Add to Cart.”
Provide Detailed Product Information:
- Include descriptions, images, videos, and reviews to build trust.
Enable Guest Checkout:
- Let customers buy without creating an account for faster transactions.

Monitoring and Growing Your Store

After setting up eCommerce payments, keep improving your store:

Analyze Performance:
- Use tools like Google Analytics or WooCommerce Reports to track sales and visitor behavior.
Run Promotions:
- Offer discounts, free shipping, or bundle deals to attract customers.
Provide Excellent Support:
- Use live chat or FAQ sections to assist customers quickly.

Add payments to your WordPress site with Clearly Payments

Wide range of supported industries
Fast funding
A full set of payment products to accept payment anytime, anywhere
World-class customer service

The post Adding eCommerce Payments to your WordPress Website appeared first on Credit Card Processing and Merchant Account.

Payment Stats That Will Blow Your Mind (and Change Your Strategy)

Kalle Radage — Thu, 19 Dec 2024 16:45:41 +0000

It’s the end of 2024 and the payments industry isn’t just evolving — it’s undergoing a seismic shift that’s changing how the world does business. From crazy numbers to transformative technologies, the stats behind today’s payment trends are more than just impressive; they’re a roadmap to the future.

Whether it’s the meteoric rise of mobile wallets or the staggering costs of abandoned carts, these insights reveal opportunities that can redefine your strategy.

Global Digital Payment Volume Passes $10 Trillion in a Year!

The global volume of digital payments will reach over $10 trillion by the end of 2024, a sharp increase from $8.3 trillion in 2023. This explosive growth is fueled by the rapid adoption of e-commerce, contactless payments, and fintech innovations.

What It Means for You: If your business isn’t already equipped to handle digital payments, you’re missing out on a massive opportunity. Implementing a seamless payment experience, such as mobile wallet support or QR code payments, can significantly enhance customer satisfaction and sales.

Mobile Wallets Account for a Massive 30% of Global Transactions

Mobile wallets like Apple Pay, Google Pay, and Samsung Pay have become household names. In 2024, they’re expected to account for nearly a third of all global transactions. This trend is especially prominent in Asia-Pacific, where mobile wallets dominate over 50% of the payments market.

What It Means for You: Adapting to mobile wallet payments isn’t optional anymore. Ensure that your point-of-sale (POS) systems and e-commerce platforms are optimized for mobile transactions. This not only meets customer expectations but also reduces friction in the checkout process.

Cryptocurrency Payments Grow by 70% Year Over Year. A Lot of Movement in Crypto.

Cryptocurrency is no longer just for tech enthusiasts. Over 420 million people globally own cryptocurrencies, and businesses accepting crypto payments grew by 70% in the past year. This growth is driven by increased consumer demand, lower transaction fees, and enhanced cross-border capabilities.

What It Means for You: If you cater to tech-savvy or international customers, consider accepting cryptocurrency. Some payment processors make it easy for businesses to integrate crypto payments, helping you stand out and attract a new customer base.

Abandoned Carts Cost E-Commerce $4 Trillion Annually in Lost Revenue

Cart abandonment remains a massive issue, with 70% of online shopping carts left unpurchased. The primary culprits? Complicated checkout processes, unexpected fees, and lack of payment options.

What It Means for You: Streamline your checkout process. Offer multiple payment options, provide clear pricing upfront, and ensure your site is mobile-friendly. Leveraging tools like one-click checkout or buy-now-pay-later (BNPL) services can also reduce abandonment rates.

90% of Consumers Expect a Seamless Omnichannel Payment Experience

Today’s customers demand consistency across all touchpoints. Whether they’re shopping in-store, online, or via an app, they expect the same ease and flexibility in payment options. An omnichannel payment experience ensures that customers can seamlessly make payments across all sales channels—whether in-store, online, or via mobile apps—while enjoying consistent and convenient payment options.

What It Means for You: Invest in an integrated payment system that works across all channels. Partnering with a payment processor that supports omnichannel capabilities will not only improve customer experience but also provide valuable insights into purchasing behavior.

Contactless Payments Are 2x Faster Than Traditional Card Payments

Time is money, and contactless payments are proving to be the fastest payment method available. On average, a contactless transaction takes just 15 seconds, compared to 30 seconds for traditional card payments.

What It Means for You: Enable contactless payments at your checkout counters. This small change can speed up transaction times, reduce queues, and enhance customer satisfaction, especially in high-traffic retail environments.

55% of Consumers Prefer Merchants Who Offer BNPL (Buy Now Pay Later)

Buy-now-pay-later services like Klarna, Afterpay, and Affirm are changing the way people shop. Over half of consumers now say they prefer retailers that offer BNPL options, particularly for purchases over $200.

What It Means for You: If you sell high-ticket items, integrating a BNPL option can increase conversion rates and average order values. BNPL is especially popular among younger consumers, making it a must-have for businesses targeting Millennials and Gen Z.

Fraudulent Transactions Reach $41 Billion Globally

Payment fraud is a growing concern, with global losses expected to hit $41 billion in 2024. Common types include card-not-present fraud, phishing attacks, and identity theft.

What It Means for You: Work with a payment processor that prioritizes security. Look for features like tokenization, PCI compliance, and AI-powered fraud detection to protect your business and customers.

Subscription (Recurring) Payments Are Growing at 20% Annually

The subscription economy shows no signs of slowing down, with recurring billing models growing at an annual rate of 20%. Consumers love the convenience of subscriptions for everything from streaming services to meal kits.

What It Means for You: If applicable, consider adding a subscription-based product or service to your offerings. Ensure your payment processor supports recurring billing to provide a hassle-free experience for subscribers.

72% of Businesses Are Prioritizing Payment Innovation

Businesses worldwide recognize the importance of staying competitive in the payments landscape. Nearly three-quarters are investing in payment innovations like AI, blockchain, and real-time payments.

What It Means for You: Don’t get left behind. Stay informed about the latest trends and technologies in payments. Partnering with an innovative payment processor can give you a competitive edge and future-proof your business.

The post Payment Stats That Will Blow Your Mind (and Change Your Strategy) appeared first on Credit Card Processing and Merchant Account.

Put a “Pay Now” Button to your Website for Payments

Kalle Radage — Tue, 17 Dec 2024 00:29:49 +0000

A “Pay Now” button on your website simplifies the checkout process, reduces abandoned carts, and ensures a smooth customer experience. Here’s an overview of “Pay Now” buttons and how you can add them to your website, app, or email to start accepting credit card payments.

Market Overview of Pay Now Buttons

The market for “Pay Now” buttons is rapidly expanding as businesses across all industries recognize the value of streamlining online payments. With the global rise of e-commerce and digital transactions, consumers expect quick and secure payment options.

Payment buttons cater to this demand, offering a user-friendly interface that simplifies transactions for customers while reducing operational overhead for merchants. Pay Now buttons can be added to website, apps, and emails for credit card payments.

In 2024, the global digital payment market is projected to surpass $12 trillion, with “Pay Now” buttons playing a pivotal role in enabling businesses to tap into this growing opportunity. Companies integrating such solutions see improvements in conversion rates, customer satisfaction, and operational efficiency, making this a must-have feature for any business operating online.

Why Add a "Pay Now" Button?

Businesses that streamline their checkout process with tools like “Pay Now” buttons are better positioned to meet these expectations and boost their bottom line. Whether you’re running an e-commerce store, a service business, or a nonprofit organization, adding a “Pay Now” button can transform your payment process and enhance the overall customer experience. A “Pay Now” button offers several benefits:

Convenience for Customers: Customers can pay instantly, reducing the time spent on checkout.
Increased Conversions: A streamlined payment process leads to higher conversion rates.
Global Reach: Accept payments from anywhere in the world.
Faster Cash Flow: Payments are processed in real-time, improving your business’s cash flow.
Professional Appearance: Having a payment button signals that your business is legitimate and modern.

Steps to Add a "Pay Now" Button

Choose a Payment Processor Select a payment processor that meets your needs. Look for features such as low fees, robust security, and support for multiple payment methods (credit cards, Apple Pay, Google Pay, etc.). Examples include Stripe, PayPal, or Clearly Payments.
Set Up a Merchant Account Many payment processors require a merchant account to handle transactions. Once approved, you’ll receive the credentials needed to integrate payments into your website.
Generate the Button Code Most payment processors provide tools or dashboards where you can create a “Pay Now” button. You’ll typically:
- Set the payment amount (fixed or variable).
- Define the payment details (e.g., product description).
- Select the payment methods to accept.
After configuring these settings, the processor will generate HTML or JavaScript code for your button.
Integrate the Button on Your Website
- If you use a website builder like WordPress, Shopify, or Wix, you can paste the button code into the appropriate page or widget.
- For custom websites, insert the code directly into your HTML where you want the button to appear.
Test the Button Always test the button before going live. Perform a test transaction to ensure that payments are processed correctly and that you receive notifications or receipts.
Go Live and Monitor Once everything works perfectly, publish your button and monitor your transactions. Use analytics to track performance and identify areas for improvement.

Pro Tips for Success

To make the most of your “Pay Now” button and deliver a top-notch user experience, consider these practical tips for success:

Mobile Optimization: Ensure your “Pay Now” button works seamlessly on mobile devices. Many customers shop and pay via smartphones.
Security First: Use SSL certificates and PCI-compliant payment processors to protect customer data.
Customization: Customize your button to match your website’s branding for a cohesive look.
Clear Messaging: Add text near the button to explain what customers are paying for and ensure they trust the process.

Example Use Cases

“Pay Now” buttons are versatile tools that can be implemented across a variety of platforms to streamline payments and improve customer convenience. Here are a few practical examples:

Websites: Websites are the most common place to deploy “Pay Now” buttons. E-commerce stores can place the button directly on product pages, cart pages, or checkout screens to encourage quick payments. Service-based businesses can use these buttons to accept deposits, balance payments, or booking fees. For instance, a freelance designer can embed a “Pay Now” button on their portfolio site to allow clients to pay invoices seamlessly.
Mobile Apps: Many businesses integrate “Pay Now” buttons into their mobile applications to cater to the growing number of mobile users. For example, a food delivery app can include the button at checkout to finalize payments quickly. Similarly, fitness apps can use it for subscription renewals or in-app purchases. This provides users with a hassle-free way to make secure payments without leaving the app.
Email: A “Pay Now” button can also be added to email communications, making it easy for customers to pay directly from their inbox. Businesses that send invoices, order confirmations, or donation requests via email can embed the button for convenience. For example, an HVAC company can email service invoices with a “Pay Now” button, allowing customers to pay instantly without visiting a separate payment portal.

By implementing “Pay Now” buttons across websites, apps, and emails, businesses can provide a seamless payment experience at every customer touchpoint, boosting both customer satisfaction and payment completion rates.

Get a "Pay Now" button with Clearly Payments

Wide range of supported industries
Fast funding
A full set of payment products to accept payment anytime, anywhere
World-class customer service

The post Put a “Pay Now” Button to your Website for Payments appeared first on Credit Card Processing and Merchant Account.

Alternative Payment Methods

Kalle Radage — Wed, 11 Dec 2024 19:51:27 +0000

Alternative Payment Methods (APMs) have become a big part of today’s evolving fintech landscape, as consumers seek faster, more convenient, and secure ways to pay.

As digital transformation continues, new payment methods have grown beyond traditional credit and debit cards, reshaping the way businesses accept payments and how customers choose to make them.

This guide provides an overview of popular Alternative Payment Methods, their impact, and why they’re becoming critical for businesses worldwide.

What Are Alternative Payment Methods?

APMs refer to any payment methods outside traditional credit or debit cards. These methods leverage digital wallets, mobile payments, bank transfers, and other innovative technologies to deliver more flexible options for consumers. APMs are particularly valuable in e-commerce and global transactions, where customers have diverse preferences and local payment habits.

Key Statistics on Alternative Payment Methods

Global Growth: APMs accounted for 58% of global e-commerce transactions in 2023, and they’re expected to exceed 70% by 2027.
Digital Wallet Dominance: Digital wallets, led by PayPal, Alipay, and Apple Pay, have become the most popular APM worldwide, making up over 40% of e-commerce payments globally.
Region-Specific Preferences: In Europe, 36% of online purchases are made through bank transfers, while Asia sees a dominance of digital wallets at 70% of transactions.
Cryptocurrency and BNPL: Cryptocurrency use in payments is projected to grow to $250 billion by 2030. Buy Now, Pay Later (BNPL) services also surged, with a 400% increase in usage since 2018.

Top Types of Alternative Payment Methods

Digital Wallets
- What It Is: Digital wallets store payment information, enabling easy purchases with a smartphone or computer.
- Popular Examples: PayPal, Apple Pay, Google Pay, Alipay, WeChat Pay.
- Why It Matters: Digital wallets eliminate the need for physical cards, simplify transactions, and enhance security. In the U.S., 40% of e-commerce payments are completed using digital wallets, and that number is growing.
Bank Transfers
- What It Is: Customers authorize direct transfers from their bank account to the merchant.
- Popular Examples: SEPA in Europe, ACH in the U.S., iDEAL in the Netherlands.
- Why It Matters: Especially popular in Europe, bank transfers offer lower transaction fees and a higher level of trust for customers. 15% of European online transactions occur via bank transfer.
Buy Now, Pay Later (BNPL)
- What It Is: Allows consumers to make purchases and pay in installments, often interest-free.
- Popular Examples: Afterpay, Klarna, Affirm.
- Why It Matters: BNPL appeals to younger shoppers looking for flexibility, accounting for 20% of e-commerce spending among Millennials and Gen Z. By 2026, BNPL is expected to grow by 15% annually.
Cryptocurrencies
- What It Is: Digital or virtual currencies that use cryptography for security, enabling decentralized transactions.
- Popular Examples: Bitcoin, Ethereum, USDC (stablecoins).
- Why It Matters: Cryptocurrency payments offer transparency and low fees, especially for cross-border payments. Though adoption remains niche, over 30% of crypto holders in the U.S. have used it for purchases.
Direct Carrier Billing
- What It Is: Charges purchases directly to a customer’s mobile phone bill.
- Popular Examples: Fortumo, Boku.
- Why It Matters: Ideal for low-cost digital services, direct carrier billing is popular in emerging markets where banking access is limited.
QR Code Payments
- What It Is: Users scan a QR code to complete transactions through a linked digital wallet.
- Popular Examples: QR codes in WeChat Pay, AliPay.
- Why It Matters: Simple and widely adopted in Asia, QR code payments accounted for 90% of China’s digital payments in 2023, facilitating fast, in-person transactions.
Prepaid Cards and Vouchers
- What It Is: Users load funds onto prepaid cards or use vouchers to make purchases.
- Popular Examples: Paysafecard, Neosurf.
- Why It Matters: Popular in gaming and online entertainment, prepaid cards provide privacy and budget control, making them a secure option for online payments.
Biometric Payments
- What It Is: Payments confirmed through fingerprint, facial recognition, or iris scanning technology.
- Popular Examples: Apple Face ID, Samsung Iris Scanner.
- Why It Matters: Biometric payments add a layer of security, and as of 2024, 60% of consumers are comfortable using biometrics for purchases.

Why Alternative Payment Methods Matter

With consumers increasingly expecting choices at checkout, adopting APMs can boost sales and reduce cart abandonment. Here’s why APMs are becoming essential for businesses:

Higher Conversion Rates: Studies show that offering APMs can reduce cart abandonment by up to 40%, as customers are more likely to complete purchases when they find their preferred payment method.
Expanding Global Reach: Different regions have different payment preferences, and by accommodating APMs, businesses can access markets they may otherwise miss. For instance, 64% of Southeast Asian consumers prefer e-wallets over credit cards.
Enhanced Security: Many APMs offer built-in security, such as two-factor authentication or biometric verification, providing customers with confidence in the safety of their transactions.

Future of Alternative Payment Methods

Alternative payments are expected to grow significantly as technology advances and global connectivity improves. The trend toward mobile-first solutions, AI-driven personalization, and a cashless society is driving innovation. As younger, tech-savvy generations prioritize convenience and security, the demand for APMs will continue to reshape payment landscapes worldwide.

Key Takeaways for Businesses

For businesses considering APMs, here are some strategic points to keep in mind:

Understand Your Market: Research which APMs are popular in your target regions. Digital wallets might be essential for U.S. consumers, while direct bank transfers are preferred in Europe.
Invest in Security: As more payment options come into play, prioritizing security in every transaction will help build trust with customers.
Embrace Mobile-Friendly Options: With mobile commerce projected to make up 73% of all e-commerce sales by 2024, optimizing for mobile payments is crucial.

By offering a range of APMs, businesses can enhance customer satisfaction, drive conversion rates, and expand globally. In a world where convenience, security, and speed are non-negotiable, APMs are not just alternatives but essential tools for success in the modern market.

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