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Why use a payment processing system like square or stripe when you can use an ecommerce platform like Shopify or BigCommerce instead
Square is a payment processing service, which has the primary role of handling transactions for small businesses that didn’t take on bank loans. It also allows people to pay securely with a debit or credit card. Examples include clothing shops and bookstores.
However, operating a business without a bank account or without a bank loan is difficult. When you need to pay suppliers as soon as possible with cash, you have to buy currency from an ATM and send it to another place. With Square, you pay suppliers through the service. Cash has to be paid in cash [physical money] and sent. Square charges fees in terms of percentage.[1]
Square also allows people to make payments online or via their mobile phone. Square’s list of supported mobile devices includes Android, BlackBerry, and iPhone products.[2]
Ecommerce platforms offer more features and options than payment processors, including the ability to create and manage your own online store
By creating an online business through the use of ecommerce platforms, such as Shopify and BigCommerce, you are able to build your own storefront and offer additional services such as shipping. You will also be able to process payments for your store in a more secure manner. Transaction fees are slightly higher, with merchant accounts starting at $29.95 a month, but the ability to create a business that caters directly to your customers and is not limited by bank loan requirements is well worth it.
BigCommerce and Shopify offer a variety of features and options to support your ecommerce business, including the ability to track sales, manage inventory, set up automated email marketing and even create your own coupons. Many ecommerce platforms also offer integration with social media platforms such as Facebook and Twitter, as well as mobile options for organizing your items with the use of smartphones.
In addition to these features, ecommerce platforms offer more options for pricing products than traditional payment processing services. You will not be limited to the predefined options offered by payment processors, making you a more attractive option for clients. You may compete with the established ecommerce platforms such as Shopify or BigCommerce, or you can set your rates according to your budget and customer preferences.
In order to sell items on ecommerce platforms, it is important to understand the benefits and drawbacks of doing so.
Benefits of using ecommerce platforms [to use as advantages]:
1. You retain your business name.
Ecommerce platforms are also typically less expensive than payment processors, and they offer more customer support
Transaction fees are typically less expensive than debit or credit card processing charges. For example, Shopify charges $29.95 a month for its merchant account and $79 per quarter for marketing services. A small business with a budget of $500 a month can easily afford these fees when compared to the average American’s weekly spending habits at around $550 during the first week of March 2016 at the price of $6.5 billion per week (source: Forbes). Shopify also offers free domain names, free hosting and a 24/7 support team. In comparison, Square charges $49.99 a month for its merchant account and $0.15 per card swipe. Another app, Dwolla, charges up to 12% plus a one time set-up fee of $500 with no free domain name or free hosting provided. Even more, Square and Dwolla charge 2.7% per transaction, with a minimum of $5.
Ecommerce platforms make it easy to sell products online, accept payments, and track sales and analytics
Shopify and BigCommerce make it easy to create online stores, add a shopping cart and get people to purchase from your store. The platform is compatible with most operating systems, making it easy for the ecommerce store to be accessed by mobile devices. In addition, the platforms enable you to accept payments for your store or website by linking the processing account to your bank account. You can also create tailored email marketing campaigns directly from the platform. Shopify charges $29.95 a month for its merchant account, while BigCommerce charges $29.95 plus an additional 2.5% a transaction and offers the added features of free domain names, free hosting and free templates.
GoDaddy’s ecommerce platform is compatible with browsers, operating systems and other platforms. The platform also offers high-quality customer service. GoDaddy charges $4 a month for its merchant account, which allows you to accept payments for your store and website. The platform also helps you create a customized shopping cart and lets you build email marketing campaigns that are highly effective in getting customers to purchase from your online store.
If you’re looking for a more affordable and feature-rich option than square or stripe, then consider using an ecommerce platform for your business needs.
For businesses on a budget, ecommerce platforms are a more affordable option than merchant accounts, and they offer more services and features. Their free domain names, free hosting and free templates save small business owners time and money. You are also able to accept payments through the platform itself or by linking your transaction processing account. If you are looking for a more affordable and feature-rich payment processing option that also allows you to accept credit cards, consider using Square. It doesn’t have many of the features found in Shopify or BigCommerce, but it is compatible with nearly any device and offers one time transaction fees of $0.25 or 2.75% (whichever is greater) on your first $2,500 per month of transactions through the platform.
Square, or ‘check out’ as the company calls it, is a provider of mobile payment processing. The system is designed for small retail businesses that use it to accept payments from customers in addition to their credit cards. Employees take a picture of the customer’s card and type in the number that matches what they see on the card. That way, the customer knows how much money they spent and can’t argue with an employee over an amount they don’t recognize.
Customer’s pay with their contactless smart card, which is simply a credit card that stores a small amount of money. When the customer sits down at a register and pays, they are asked to hold their phone up to the terminal display. The phone sends a signal to the card reader to verify that it is the same one the customer used at their last purchase. The company then verifies that the card has sufficient funds for payment and processes the transaction. However, it doesn’t negate fraud and security breaches.
