To succeed in e-commerce, it is crucial to be able to receive smooth and secure payments from your customers. This is one of the most critical steps you need to take when building an online business. Knowing which path to take before getting a virtual POS makes all the difference for the future of your business. In this article, we explain step by step what virtual POS is, how banks and payment institutions work, and how to choose the best payment solution for different business models.
Becoming a Company is a Must to Receive Online Payments
In order to receive payments over the Internet, you must first you need to be a company. You must be a commercial business with a tax certificate. Those who try to sell online as an individual will usually run into problems in the future. The only exception is that some marketplaces allow individual sellers to sell products on their own. However, this usually means using someone else's Virtual POS and can cause legal problems in the future. Therefore, to build a solid e-commerce business, you should have a formal company structure.
Choosing a Payment Organization According to Your Business Model
Your business model determines which payment solution is right for you. Are you an association, do you sell digital goods, or do you sell internationally? The answers to these questions will influence whether you choose a bank or a payment institution.
Organizations Accepting Donations
If a association or foundation as a fundraiser, it is usually it is better to turn to banks. Foundation Banks and Participant Banks in particular offer more suitable solutions for such organizations. Payment institutions may find the donation process more challenging for associations and may not provide virtual POS, considering this situation risky. In addition, banks' commission rates may be lower for donation transactions.
Selling Virtual Products and Digital Services
Video, visuals, software, etc. virtual goods or digital services this may be seen as riskier by payment institutions and banks. Because there is no physical shipment of the product, payment institutions may ask for proof that you are actually providing the service. This is due to the high risk of counterfeit cards and fraud. For digital product sales payment institutions are generally easier to work with because they have more flexible processes in this area. It can be more difficult to do this with banks.
International Sales
If your Virtual Pos if you are going to sell abroadthe process becomes more complex. Both rates and terms can be high for sales from Turkey to abroad. If possible open a company abroad and receive payments from abroad is seen as the healthiest way. If this is not possible, instead of using banks for foreign sales it is more convenient to work with payment organizations. Payment institutions are more experienced in international payment processes and can offer appropriate solutions.
Banks and Payment Institutions: Advantages and Disadvantages
One of the most confusing issues in the process of acquiring a Virtual POS is whether to choose banks or payment institutions. Both have their advantages and disadvantages.
Payment Institutions
Advantages:
Advanced Interfaces: They have more modern and user-friendly dashboards.
Detailed Reports: They provide comprehensive reports that allow you to better analyze your transaction history and sales.
All Bank Cards: They usually allow you to receive payments from credit and debit cards of all banks.
Campaigns and Installments: They may offer different campaign periods and favorable installment rates.
Flexibility: In some cases, they may even offer commission-free virtual POS up to certain amounts.
Digital Products and International Sales: They offer easier solutions for such risky business models than banks.
Recurring Payments and Card Storage: They support card storage and recurring payment systems better than banks.
Disadvantages:
Commission Rates: Initially, they may charge higher commission rates than banks. However, as your business volume increases, you can request to reduce these rates.
Banks
Advantages:
Reliability: Banks are perceived as fundamentally more established and reliable institutions.
Low Commission: They usually offer lower commission rates than payment institutions. They may even offer %0 commission for long terms.
For Established Businesses: If you already have a functioning trade and have multiple virtual POS, it can often be more profitable to manage through banks.
Disadvantages:
Installation Process: Virtual POS setup processes can be more complex and lengthy.
Legacy Interfaces: Dashboards can be more old-school and difficult to use than those of payment institutions.
Risk Assessment: They may find it risky for business models such as donations and digital products and may find it difficult to provide virtual POS.
Annual Usage Fees: Some banks may charge an annual usage fee.
Card Storage Support: They usually do not support credit card storage and recurring payment systems.
Card Storage and Recurring Payment Systems
Today, subscription-based services and recurring payments have become commonplace. Being able to store your customers' card details securely and receive subsequent payments automatically is essential for many business models.
For example, WooCommerce for e-commerce sites using e-commerce infrastructure WooCommerce Subscriptions plug-ins such as these provide the infrastructure for recurring payments. However, these systems usually cannot work directly with banks. This is because banks have restrictions on storing credit card information.
We have developed POS Integratoris Turkey's most preferred virtual POS plugin for sites using WooCommerce and WordPress infrastructure. POS Integrator, WooCommerce Subscriptions and supports recurring payment systems.
In this way, your customers' card information is stored in the payment institution's secure infrastructure and no card information is stored on your site or in our plugin. Only a "token" is used to send an instruction to the payment institution. This means that instead of banks requires working with payment organizations because banks do not support these token-based card storage systems.
Some payment institutions may charge a small additional fee for card storage.
With POS Integrator, you can easily manage not only subscription sales but also different payment scenarios:
Subscription Sales:WooCommerce Subscriptions and receive regular payments.
Collected Sales: Create free payment forms with Ninja Forms.
Whether you collect donations, sell subscription products, or collect from your customers easily; with POS Integrator, you can integrate your payment processes with a few clicks and offer your customers a safe and fast shopping experience.
Collection Systems: Free Payment Applications
Some business models require free collection instead of selling a specific product. This allows customers to be paid for any service or product in exchange for a set amount. Such systems are often different from a specific invoicing practice; rather, they offer flexible payment forms.
POS Integrator's collection systemallows you to receive payments on a form. It also offers specialized tools for payment history and details that you can show to your customers later.
Who is this free payment system suitable for?
Health Sector: Dentists, aesthetic centers and clinics offering general health services use it to easily collect payments from their patients.
Education and Book Sales: Educational institutions, online courses or book sellers use this system to collect payments from their customers.
Agencies It can be used to charge customers for special projects or additional work.
Wholesalers: Ideal for getting paid for large volume sales or special deals.
Tourism and Health Tourism: Sends links to customers, allowing them to receive payments in different currencies.
Tips for Choosing the Right Payment Institution
There is no single answer to the question "Which payment institution should I choose?". To make the best choice, pay attention to the following:
Don't be fooled by Commission Rates: Just don't immediately believe the low commission rate or marketing tactics like %0 commission. Sometimes these can be valid up to a certain figure or period.
Value Experience: It makes more sense to choose well-established and reliable payment institutions that have been on the market for a long time.
Labor Relations: In some cases, you can speed up processes through personal relationships or referrals. If you need a suggestion or guidance, the support team can help you when you decide to use plugins like POS Integrator. They can make it easier for you to get in touch with some companies and speed up your processes.
Conclusion
Choosing the right payment solution for your e-commerce business is an important consideration at the outset. Your company, the needs of your business model (donations, digital products, international sales, etc.), and your recurring payment requirements directly affect your choice between banks or payment institutions.
Payment organizations generally offer more modern interfaces and flexibility, while banks stand out with low commission rates and basic reliability. Plugins like POS Integrator greatly simplify payment processes, especially for WooCommerce and WordPress users. By adapting to different payment scenarios, they help you provide your customers with a secure and fast shopping experience.
Consider your business volume, goals and long-term needs when making a decision.
If you have any other questions about Virtual Pos, feel free to write as a comment. We will be happy to help.
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