How to accept payments online
Read time: 4 mins Added: 02/06/2023
More and more businesses are taking online payments from customers. It can help you reach new markets, reduce costs and sell more efficiently.
The benefits
Make it easier to buy from your business
Every year, UK shoppers do more of their shopping online. The ONS reports that in May 2022, seasonally adjusted internet sales accounted for 26.6% of all official retail sales, compared with 19.7% in February 2020. The message is clear: every business needs to consider taking card payments online.
As well as accepting payments and increasing sales, eCommerce helps businesses to:
- offer a broader range of products
- promote best sellers more easily
- offer discounts, promotions or sales more efficiently
- enter new markets
- reduce operating costs
- support the drive of greater consumer convenience.
And it doesn’t stop there.
Greater personalisation
By identifying your customers’ shopping habits, you can target promotions to individuals or groups.
Eliminate time and location restraints
You can trade all day, every day online and reach new customers or benefactors worldwide and in a range of currencies.
Scaling up
By accepting credit card payments online, businesses can grow more easily and at a lower cost than traditional, physical businesses. Lower storage and retail space requirements are just one area that demonstrates this.
How to do it
How you can set up your online payment system
An eCommerce website allows people to pay directly online for goods or services. They can do this using credit or debit cards or wallets such as Google Pay or Apple Pay.
To get started, you must purchase a domain name from a domain registrar such as Google Domains† or from your third-party website builder.
Then you set up a page on your website that can accept online payments. You’ll need to partner with a bank that can accept these payments and deposit them into your merchant account.
Whether you’re building a new eCommerce site or adding it to an existing site, you have three options:
Work with a payment gateway services provider
Several companies offer payment gateway services to small businesses in the UK, including Lloyds Bank Cardnet.
- Hire a web designer
They can create or update an existing website to process online transactions. - Build your website using a third-party website builder.
You can build a website using simple, customisable templates from online providers. Simply select one of their themes, which come with pre-built integrations into common payment gateways.
Consider what information you need
Options could include inventory tracking, follow-up emails or advertising campaigns. There are even features that support social media extensions.
Make it easy for your customers
Your website should provide all the information customers need to decide whether to buy – with good descriptions and images. Consider what questions a customer might ask and answer them.
Above all, make sure customers can easily:
- find what they want to buy
- add items to their shopping basket and
- enjoy a smooth and secure payment experience.
Use tools to view online transactions
Consider what tools you need to gain oversight and management information from your gateway service providers. It’s helpful to think of these processes as a kind of online banking for your website. They could help you:
- track transaction details
- oversee order management – this is often built into the eCommerce cart software
- get reporting and reconciliation
- see reporting statements from the merchant acquirer.
Important legal information
Lloyds Bank is a trading name of Lloyds Bank plc, Bank of Scotland plc, Lloyds Bank Corporate Markets plc and Lloyds Bank Corporate Markets Wertpapierhandelsbank GmbH.
Lloyds Bank plc. Registered Office: 25 Gresham Street, London EC2V 7HN. Registered in England and Wales no. 2065. Bank of Scotland plc. Registered Office: The Mound, Edinburgh EH1 1YZ. Registered in Scotland no. SC327000. Lloyds Bank Corporate Markets plc. Registered office 25 Gresham Street, London EC2V 7HN. Registered in England and Wales no. 10399850. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under registration number 119278, 169628 and 763256 respectively.
Lloyds Bank Corporate Markets Wertpapierhandelsbank GmbH is a wholly-owned subsidiary of Lloyds Bank Corporate Markets plc. Lloyds Bank Corporate Markets Wertpapierhandelsbank GmbH has its registered office at Thurn-und-Taxis Platz 6, 60313 Frankfurt, Germany. The company is registered with the Amtsgericht Frankfurt am Main, HRB 111650. Lloyds Bank Corporate Markets Wertpapierhandelsbank GmbH is supervised by the Bundesanstalt für Finanzdienstleistungsaufsicht.
Eligible deposits with us are protected by the Financial Services Compensation Scheme (FSCS). We are covered by the Financial Ombudsman Service (FOS). Please note that due to FSCS and FOS eligibility criteria not all business customers will be covered.
While all reasonable care has been taken to ensure that the information provided is correct, no liability is accepted by Lloyds Bank for any loss or damage caused to any person relying on any statement or omission. This is for information only and should not be relied upon as offering advice for any set of circumstances. Specific advice should always be sought in each instance.