Do you know why every online business allows customers to make payments through credit cards? Well, it is one of the most popular and convenient payment methods, which most customers prefer worldwide. But, to accept credit card payments, the merchant should need a credit card processing Singapore, merchant account, and payment gateway.
Since the beginning of 1985, Singapore has worked to increase the amount of non-cash payments. People have grown accustomed to cashless transactions, from bill payment and shopping to using the MRT and buying a cup of coffee.
Since the payment processing sector has seen a such significant change in recent years, it is crucial for merchants and other companies to stay current with new regulations. Payment processing integration enables the deposit of debit/credit card transaction data straight into the merchant's bank account.
In today's life, merchant needs to have credit card processing for their online businesses because it will increase their sales, and as a result, they will gain more and more profits.
Let's have a look at credit card processing in detail.
Although wallets' market share increased, credit cards continued to be Singapore's most popular payment method. On the other hand, it is anticipated that as mobile wallets take their place, cash will continue to lose market share. Singapore had the highest percentage of cashless transactions in Southeast Asia in 2020.
Singapore's credit and charge card payment market will increase between 2021 and 2025 at a compound annual growth rate of 6.5%, reaching S$80.6 billion (US$59.8 billion) in 2025, predicts data and analytics company, Global Data.
The market is expected to rise by 8.8% in 2022, while the value of debit card payments is expected to increase by 7.2% as the GDP of Lion City recovers. The GDP of Singapore will grow by 7.2% in 2021, reversing its 5.4% decline in 2020. In Singapore, the amount paid with credit and charge cards decreased by 15.3% in 2020.
The use of credit and charge card payments is also increasing due to Singapore's robust card acceptance network, which will have over six point of sale (POS) terminals for every 100 people in 2021.
Let's try to understand it in a simple sentence. A credit card processor is a middleman between merchant websites and the credit card company. It is responsible for transferring the funds from the customer's credit account to the merchant accounts.
As soon as the customer enters their card details, the credit card processor will process the transactions before transferring the funds to the business account. Its key responsibility is communicating customer-sensitive data from the customer cards to the bank.
In other words, credit card processing is all about authenticating, approving, and transferring funds in payment transactions.
Merchant accounts and payment gateways are two important components to accomplishing an online transaction. It is a misconception that businesses need a payment gateway or a merchant account. But, in general, a single payment procedure necessitates using all three crucial components—a merchant account, a payment gateway, and credit card processing.
A payment gateway is a piece of technology required to collect payments online. Thanks to a link connecting a customer's bank account and your merchant account, funds can be transferred when a transaction is cleared.
Contrarily, a merchant account is a business bank account where customers' funds are deposited before they are transferred to the merchant bank account.
For example - if you want to expand your business globally, you need an international payment gateway and international credit card processing. In the same way, if you are running a forex business, you must have a forex merchant account, a forex payment gateway, and forex credit card processing.
A merchant account is essential for all online businesses because merchants receive the funds in their merchant accounts. Once the payment gets verified, the funds move to the business bank accounts. So, any online business needs a suitable merchant account and payment gateway that suits their business needs.
Let's first try to understand what is credit card processing fees. In general, it is a fee that merchants pay to credit card companies and financial service providers to authorize and complete the card transaction successfully. The merchant has to pay the credit card processing fees on each transaction. It is also known as the merchant discount rate. Generally, it includes the following fees.
Interchange fee: It is the fee that is paid to the issuing bank. The issuing bank is the bank in charge of the credit card used to make the purchase.
Assessment fee: The card networks, including Visa, MasterCard, Discover, and American Express, get this fee.
Payment processor fee: This is paid to the processor, who arranges your business's card payments to be processed.
The payment processor either deducts your credit card processing fee directly from your account at the end of each month or reduces the cost of each deposit by the amount of the fee due.
Today, you cannot imagine gaining more and more profit from your online businesses without having a reputable credit card processor. As a merchant, it is your responsibility to partner with a reliable organization that can offer you a variety of payment choices. Also ensures a fast and reliable checkout process for your customers.
In Singapore, you can get many organizations that offer you the best services, but we recommend you choose PayCly. It is one of the best service providers in Singapore that serves many merchants. The best point about PayCly is that it is compatible with all types of businesses.
We, as "PayCly," offer complete payment solutions. We provide suitable merchant accounts, payment gateway, and credit card processing according to your business needs. With us, the merchant can easily run their businesses and gain more and more profits.
Let's have a look at the features of PayCly in Singapore.
Accepting credit card payment is essential for any online merchant because most customers worldwide prefer credit/debit cards to make payments. To accept credit card payments, merchants need suitable credit card processing, payment gateway, and merchant account.
Today, you can get many service providers in Singapore, but we recommend PayCly. It is Singapore's most popular payment service provider. As it has many years of experience, so it completely understands your business needs and offers you the same.
Feel free to contact us through mail - email@example.com or directly drop your query here - https://paycly.com/apply-now.php any time to know more about our services.