If you're in business today, it's likely that you need some sort of way for customers to pay you via an internet connection. Whether they want to make purchases using credit cards, debit cards, Apple Pay, Google Wallet, Venmo, Square Cash, etc., there are plenty of ways for them to do so. But how many people know about all these different options? For instance, if someone wants to use a card like Visa or MasterCard, they'll have no problem finding one right at their local grocery store. However, if they'd rather not carry around a physical card, but still want to be able to purchase things online, then they might consider looking into a virtual prepaid card instead.
A prepaid card works exactly as its name suggests: You can load money onto it (via your bank account) and use it just like any other form of cash. It doesn't expire, nor does it require a monthly fee from you. In fact, most banks offer free access to their prepaid cards through their mobile apps -- which means that anyone who has a phone could theoretically go out and buy something on Amazon or eBay by simply tapping their phone against the reader that accepts NFC payments.
However, while this method isn't ideal in every case, it's certainly convenient when shopping locally. And even though you may only get charged $0.25 USD per transaction, you won't feel too bad about spending over $100 USD each month because those charges will disappear once you've paid off your balance completely.
But what happens after that? How else can people shop online? Can they still pay you using their phones? If you run a web site (or perhaps sell products directly), would it be possible for users to pay you using another service such as Dwolla, Stripe, PayPal, Braintree, WorldPay, etc.? The answer is yes! These services allow merchants to accept almost any type of payment imaginable. They also provide excellent customer support, so you don't have to worry about whether or not you were properly credited for the sale.
In short, if you work hard enough, you should eventually be able to turn all of these different methods into one big revenue stream. Here are two examples of companies that have done so:
Fiverr was founded back in 2008 with the goal of connecting freelancers with clients worldwide. Since then, it's grown to become one of the largest freelance marketplace platforms on Earth. Although it originally offered only gigs ranging between $5-$50 USD, it now offers everything from website design and development to logo creation and much more.
Of course, since Fiverr caters primarily to freelancers, it makes sense that they offer a variety of payment processing solutions. Their "gigs" section alone includes dozens of different types of offerings, including ones that help developers build websites from scratch, and others where designers can create custom graphics for a fraction of the cost.
Shopify started life as a simple eCommerce platform focused solely on selling T-shirts and other apparel items. Today however, it's evolved into a full-fledged digital storefront solution that allows entrepreneurs to set up their own stores quickly and easily. Not only that, but Shopify also provides them with a number of additional features that include advanced analytics tools, product catalogs, social media marketing integration, shipping automation, SEO optimization, and more.
While most folks probably think of Shopify as a retailer first and foremost, it actually supports nearly anything imaginable as far as eCommerce goes. That said, unlike Fiverr, Shopify offers only one type of payment gateway: Dwolla. When setting up a new Shopify store, you must choose between either paying a flat rate of $99/month or choosing to sign up for a 30 day trial period for $199. After the initial setup costs are covered, you'll end up being billed $19 per month thereafter. So although the prices aren't quite as low as they are elsewhere, it's definitely worth considering if you plan to launch multiple sites throughout the year.
So why did we focus on Fiverr and Shopify specifically here? Well, both of these companies operate within fairly well-known industries. While neither company comes close to competing head-to-head with giants like Facebook and Twitter when it comes to overall user numbers, they nonetheless represent a couple of very large markets. Therefore, it's entirely reasonable to assume that these startups are working overtime to expand their customer bases, especially given the amount of competition that they face on a daily basis.
And speaking of competition, what other major players exist in this space? Let us take a look...
As mentioned earlier, white label payment gateways enable small businesses to integrate various forms of payment technology into their own websites without needing to spend thousands upon thousands of dollars building and maintaining their own infrastructure. This gives them control over virtually every aspect of their commerce experience, from branding to security, and enables them to save time and effort along the way.
The following video shows you how easy it is to install a white label payment gateway system yourself -- provided that you already have hosting and domain registration set up:
Stripe is a popular alternative to traditional banking institutions when it comes to accepting payments online. Unlike most other payment processors, Stripe lets anybody open an account without requiring a minimum deposit, meaning that you never have to put down any money upfront before starting to receive funds. Instead, you merely agree to pay a percentage commission whenever someone pays you via their Stripe account.
Although Stripe is often referred to as a "payment provider", it really shouldn't be confused with a payment gateway. In reality, it functions similarly to Dwolla or PayPal in regards to enabling individuals to send and receive payments. However, whereas these alternatives typically charge fees based on volume, Stripe charges a fixed price regardless of how high or low the total value of transactions becomes.
That said, it's important to note that Stripe is currently limited to US residents only.
This distinction matters considerably when it comes to determining whether or not you qualify for certain tax breaks and subsidies. As such, it's best to consult a certified accountant before making any significant decisions regarding your finances.
For example, if you decide to incorporate Stripe into your business model, you might find that you're eligible to claim deductions relating to interest expenses and taxes owed. On the other hand, if you opt to sell goods using a merchant account, you'll have to rely on other avenues to deduct sales commissions from gross income.
On top of that, if you're planning on offering gift cards as part of your business model, you must register with Gift Card Exchange (GCE). Otherwise, you won't be allowed to issue or redeem gift cards unless you're registered with GCE.
It depends largely on your perspective. Some people believe that Stripe is nothing more than yet another middleman trying to squeeze extra profit out of unsuspecting consumers. Others see it differently, arguing that the company has been extremely helpful in facilitating small businesses' ability to flourish in a world dominated by giant corporations.
Ultimately, the decision rests solely on your personal preference. Some people prefer to deal exclusively with established entities that have proven track records, while others enjoy exploring new opportunities. Ultimately, it boils down to knowing what you're getting into -- and whether or not you're willing to invest the necessary resources to succeed.
Finally, keep in mind that none of these points apply if you don't already have a functioning website. Without a place to display your merchandise, nobody will ever bother visiting your page.
Want to learn more about how to start a successful online business? Check out our guides below:
How to Build Your Own Website From Scratch With WordPress
Create Great Content for Your Blog Using Jekyll & Hyde Editor
Payment processing services are available in many forms today, but perhaps none so unique as white label payment gateways. A white label payment gateway allows companies to incorporate their own branding into an existing payment system for use on websites or mobile apps. A white label solution can help you save money by avoiding expensive fees that would be incurred if you built your own custom payment system. In addition, it offers flexibility when creating new products because you do not have to worry about building out backend functionality yourself. This article discusses how white label payment solutions work and why they are useful.
Stripe was one of the first major players to offer a white label payment service, which has helped its popularity skyrocket. It also features several ways to integrate third party payments into applications such as web browsers, email clients, social media platforms, messaging tools, etc. The company's API (application programming interface) makes integration easy since developers only need to make changes to code instead of dealing directly with credit card processors like most others. Stripe is available through its website and via popular cloud providers including Google Cloud Platform and Amazon Web Services.
The following sections cover some important aspects to consider before choosing a payment gateway provider -- the types of payment methods offered, pricing models, security protocols, and more.
When researching which payment processor will best fit your needs, there are three main factors that matter most: cost, ease of implementation, and customer experience. Each payment option has advantages and disadvantages based on these criteria. For example, while Dwolla charges 0 percent transaction fee on all transactions, this service does not allow users to pay using cryptocurrencies due to legal issues. On the other hand, Dwolla processes international transfers at no extra charge compared to domestic ones. Here is a brief overview of each payment gateway’s pros and cons.
As mentioned above, Stripe is among the top four largest providers of online payment solutions in the world. Its core product is designed to simplify ecommerce and digital commerce. It lets customers easily accept payments via bank accounts, debit cards, gift cards, Bitcoin wallets, Apple Pay, Android Pay, and other cryptocurrency wallets. Stripe supports both fiat currencies such as US dollars and Euros as well as virtual currencies like bitcoin.
In fact, Stripe claims that over 100 million people worldwide use its payment service every month to purchase goods and services ranging from groceries to travel tickets and even medical procedures. Unlike traditional credit card companies, Stripe does not require monthly minimum balances or annual maintenance fees. Instead, it collects a flat 2.9 percent per transaction fee along with 30 cents per successful authorization.
While Stripe has been around for almost two decades, its recent expansion includes partnerships with Facebook Messenger and Slack, as well as support for over 40 languages. These integrations enable seamless experiences across various channels, allowing buyers to complete purchases quickly.
Currently, Stripe accepts payments made via bank account transfer, debit cards, gift cards, crypto currency wallet transfers, and Apple Pay/Android Pay. However, it currently does not support recurring billing, subscription plans, or other advanced options.
No, although Stripe offers similar payment options and functions similarly to PayPal. While PayPal focuses primarily on consumer-to-consumer transactions, Stripe mainly serves merchants who sell items or services to other businesses. With Stripe, the buyer pays the merchant directly rather than going through a third party intermediary such as eBay or Etsy. As such, Stripe works more efficiently and cuts down on middlemen costs.
Unlike PayPal, however, Stripe does not store user data. All financial details are kept private until after the transaction has completed, eliminating the risk of identity theft.
If you want to learn more about how to start accepting payments through Stripe, check out our guide here.
Although it depends heavily on your business model and market niche, Stripe typically charges either $0 or a percentage of sales depending on whether the sale takes place inside the United States or abroad. If you're looking for a low-cost alternative, try Square Cash, a peer-to-peer cashless payment app that can be used to receive and send small amounts of money between individuals. Other alternatives include BitPay and Xoom.
For further reading, please see our related articles below:
Why should I choose PayPal over my competition?
Should I build my own payment gateway?
Which payment gateway is right for my business?
PayPal vs. Stripe: Which One Should You Use for Your Business?
The most common type of white-label payment service is one where a company purchases a hosted credit card processor. The company then integrates this third party software onto its website, app, or other digital platform under their brand name.
This means that instead of customers being directed to PayPal’s site to make a purchase, or entering credit card information through Amazon Payments, they will see “Your Business Name” and go directly there. They may even get redirected to YourBusinessName.com/payments instead of www.yourbusinessname.com/checkout.
Once a company has completed the development phase, they simply upload the files to their web hosting account and voila! – instant website or mobile application integration. There are no additional costs associated with setting up a white label payment gateway unless the developer chooses to implement certain advanced features such as fraud detection, IP address tracking, multi-currency support, multiple currencies, and more.
White label payment providers also offer API access to allow developers to integrate the payment gateway into their own applications. This feature helps them keep control over security and customization while still integrating payment options from popular providers like Stripe.
Many small business owners don't know what they're missing out on by not using a third party payment provider like Dwolla or Braintree. These companies offer an easy way for merchants to accept credit cards from customers around the world at no cost. But there's more than just accepting payments that makes these services great - it also allows those same businesses to brand them as their own. This means customizing the look of the checkout page, adding your own branding elements, and even changing prices from one merchant account to another within minutes! So how can this be done?
While some small businesses may have heard about "white labeling" before, many are still confused as to exactly what it means and whether it applies to them. The term itself has been used in various ways over time, but most often refers to selling products under someone else's name while maintaining complete control. For example, if I open up my own restaurant called "Soda Pop," I could sell drinks branded with "Soda Pop" all day long. However, when I'm doing so, I am technically only paying Soda Pop's parent company, Coca Cola Company, which owns the trademark rights to the soda pop drink. In other words, I'm simply buying the right to use the name "Soda Pop."
This concept can apply to any product or service, and is commonly referred to as "white label" because the actual product being sold remains unchanged (or at least very similar). What changes instead is the logo, color scheme, pricing structure, design, etc. All of these things belong to the owner of the website who sells through the platform. They essentially become the face of the store while also taking care of the technical aspects such as keeping track of customer orders. This gives the owner total freedom to change anything they want. If the new logo isn't working well, then they can swap it out in seconds. And if they decide to increase the price of coffee ten cents per cup, they can do so instantly.
But why would anyone want to take advantage of something like this? Well, first off, the fees associated with most traditional payment processors aren't particularly low. Even though Dwolla charges 0% per transaction, the average fee charged by its competitors ranges between 2%-3%. On top of that, each processor requires separate agreements with every state where the site offers sales, meaning additional costs for acquiring new accounts. With a white label solution, however, everything stays local to begin with. No longer will you need to pay extra for each state in which your site operates. You'll also never again worry about getting kicked off of certain platforms due to high fees. Finally, since your site doesn't actually hold the money, you won't ever run into issues with chargebacks. It's pretty much perfect for everyone involved.
So now that we've covered the basics, here's a quick guide to help you understand the different types of white label solutions available today.
In short, white label processing lets you add your own brand to a third party checkout system. Instead of accepting card transactions directly from the buyer, you present a form asking them to provide their email address and phone number. Then, after completing both fields, they get redirected to the third party platform where they can make purchases. Since you maintain full ownership of the site, you can easily update it whenever necessary.
If you'd prefer to avoid creating your own forms altogether, white label checkout does away with that step entirely. Essentially, you embed the code provided by the third party solution into your existing website. When visitors click the button to check out, they're automatically taken to the appropriate page on the website. This means your entire site looks identical regardless of what payment processor you choose. As far as users are concerned, nothing has changed.
As you might imagine, this type of setup comes with several advantages. First of all, it eliminates the risk of losing potential clients who feel uncomfortable signing up for an unfamiliar service. Secondly, since you don't need to deal with collecting information yourself, you save tons of time. Thirdly, since you remain fully responsible for managing your site, you won't lose access to important tools should problems arise. Lastly, since your site already exists and is optimized for conversions, it's likely to see increased traffic compared to a completely blank slate built from scratch.
There are plenty of reasons why you shouldn't go down the road of building your own shopping cart. Thankfully, there are lots of options available today that allow you to reap all of the benefits listed above without needing to build your own infrastructure. Here's our pick of five popular ones to consider:
1) Paypal Payments Pro
PayPal is one of the largest providers of ecommerce sites worldwide, and its highly customizable platform allows you to set up your storefront with ease. From the moment you sign up, you'll receive detailed instructions showing you how to install the software onto your server and configure it properly. Once that's completed, you can start promoting your shop immediately and keep tabs on your finances via PayPal's reporting tool. 2) Braintree Payment Gateway
Braintree is one of the best known options among developers looking to integrate payment processing into their websites. The fact that it's owned by eBay further distinguishes it from the competition, giving you peace of mind knowing that you're dealing with a reputable company. Plus, they give you free credit card reader integration, allowing you to quickly accept payments from anywhere in the world without needing to rely on a third party bank. 3) Dwolla
Like Braintree, Dwolla focuses primarily on providing international payments. In addition to supporting almost 100 countries, it also boasts a robust API that gives you complete control over your funds. Its flat rate of 1%, coupled with zero fees, ensures that you'll always come out ahead. 4) WePay
WePay specializes in simplifying the whole process of accepting payments through your site. Like Dwolla, it supports multiple currencies and integrates seamlessly with WordPress, Shopify, WooCommerce, and others. 5) Amazon Payments
Amazon has recently introduced a new option called Seller Fulfillment Services that allows merchants to manage their inventory themselves rather than relying solely on Amazon to fulfill orders. By offering this feature, Amazon aims to compete with larger retailers like Walmart, Home Depot, Target, Best Buy, etc., who are able to handle fulfillment themselves. While this certainly sounds appealing, it does require a significant investment upfront, especially considering that you wouldn't otherwise need Amazon Payments. Still, it's worth checking out if you plan on expanding beyond Amazon.
Stripe seems to be the industry leader in terms of simplicity and functionality. After installing an application on your web host, you can connect it to your Stripe account and configure it accordingly. Unlike most other providers, you don't need to buy licenses for each country where you wish to operate. Instead, you simply enter the billing addresses for each location and then select the currency that you'll be handling. Other than that, it couldn't be easier.
For people interested in white label processing, Stripe is definitely a solid choice. Not only does it simplify the process greatly, but it also provides a ton of flexibility. Unlike some of the other options, you can choose to support multiple currencies, including Bitcoin. Also unlike some of the alternatives, you'll find that it's extremely affordable. Although it currently charges $0.20 per transaction plus 30c for each successful sale, it typically drops below 50c once you reach 10k monthly active users. That said, it's important to note that Stripe is currently experiencing performance delays due to recent security updates. So the next few months may prove quite challenging.
The best part about using a white label payment gateway is that you can switch providers whenever you like. There's no reason to stick with one specific provider forever. Many of the biggest players in the space are constantly updating their offerings to stay competitive, ensuring that you continue to benefit from cutting edge technology. And since none of them require special training to implement, switching takes less than an hour.
To learn more about how a white label payment gateway can improve your business, contact us today.
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