shopping online order purchase buying concept

Integrated vs. Non-Integrated Credit Card Processing

September 15, 2021

Do you own an online business? Are you trying to find ways to navigate the complex world of e-commerce? Well, no need to keep searching! You’ve come to the perfect place to answer all your questions about online finances, payment processes, and more.

Today, we will be talking specifically about credit card processing, focusing on integrated vs. non-integrated processing. While these two may seem pretty similar, they have many crucial differences that make them suitable for certain businesses. Want to find out which one is best for your online shop? Then keep reading to find out more as we dive deeper into the battle between integrated and non-integrated credit card processing.

What’s The Difference?

Learning the difference between both is an excellent place to start. To answer this fundamental question, first, we need to define our terms.

 Integrated credit card processing is a processing method built into the platform or website where you sell your products. This processing method is revered for being fast, easy, convenient, and helping to retain customers by making their checkout experience quick and effortless.

On the other hand, non-integrated credit card processing is a way of processing credit card payments that aren’t run by your platform but by a third company. This company creates a safe payment gateway for consumers to buy things while keeping their personal information safe. 

Alright, now that we’re all on the same page, let’s discuss each process in length so you can weigh out all the pros and cons and see which one it’s right for your business.

How Does A Payment Get Processed?

Well, it depends entirely on which process you choose. Let’s compare the two by proposing a hypothetical situation. A young woman named Samantha has found her way to your online shop via Instagram. She sees a pair of earrings she loves and decides she must have them right away. 

If the website uses integrated credit card processing, here’s how it will all go down:

Step 1: Samantha will click “go to checkout”

Step 2: Samantha will put in all her personal information without getting redirected anywhere else and finish her purchase all in one fell swoop!

But if the website has non-integrated credit card processing, this is what will happen:

Step 1: Samantha will click “go to checkout”

Step 2: Samantha will put in her information

Step 3: Samantha will get redirected to a third company page to choose which payment option she would prefer. Since she’s a young person, she’s most likely to choose ‘PayPal’ since nowadays many young people find it easier and more convenient to use, especially when shopping online. 

Step 4: once she has entered her payment info, it’ll get authenticated, and as soon as it does, it will redirect her to the website, where she will be asked to complete her purchase. 

Right off the bat, you can probably spot the main difference here: time. The integrated processing options are done in a few seconds, while the other ones can take up to a few minutes. But can this impact the consumer’s decision? It turns out that it does quite a lot.

Wanting to buy something from an online business and then getting redirected can make consumer’s hearts quicken since they feel like they’re getting scammed. And although PayPal is a favorable option, it still takes some time to put in your information, which will most likely make your customers get impatient and abandon their carts. 

With integrated processing, everything is done in one place. The shopper will most likely feel safe giving the company their information since the power to process credit cards builds a sense of trust and security. The shopper also has less time to panic because the transaction is completed in seconds. They finally get to sit back, thankful that modern technology allows them the luxury of being able to buy things without having to leave their home.

Alright, now that you’ve gotten the chance to look at how each option behaves in the same scenario, let’s look at each payment process in more detail. 

Integrated Credit Card Processing

Integrated Credit Card Processing is used by pretty much all the major brands that have online stores, and it provides a clean and comfortable way for people to shop. 

An integrated processing system does all the work by authenticating the shopper’s information and interacting with their bank’s server without needing a third-party processor. This also means that it won’t redirect customers to another page, making them feel more secure and dissipating any doubt that they’re getting scammed. 

Now that you’ve got a short description, let’s get down to the nitty-gritty by looking at the pros and cons: 

Pros:

  • Fast
  • Efficient
  • It makes customers feel like they had a better experience
  • All your payments processed in one place
  • Safe
  • Useful
  • Modern

Cons:

  • It may take a while to sort out since you’ll need to hire a software developer to add it to your website or switch platforms if the one you’re using doesn’t have integrated payments.
  • It may require an initial investment.

Alright, now, let’s compare this method with the non-integrated credit card processing. 

Non-Integrated Credit Card Processing

Non-integrated processing is done through a third party instead of your website. It can be run through any software, from a Chrome extension to a mobile app. 

Pros:

  • Safe for the customer and the merchant
  • Intuitive
  • Useful

Cons:

  • It takes longer to process payments
  • May make consumers feel like they’re getting scammed by redirecting them
  • It takes too long to finish the purchase

Conclusion

The truth is that the only way to know which process is best for your business is to try one of them yourself. If you’ve been using non-integrated payment processing for a long time and it hasn’t caused any troubles, then you can continue to use it. After all, if it isn’t broken, don’t try to fix it! But if you see your revenues starting to drop or you want a change, investing in some software to make payments easier can go a long way.

Save Time, Money, & Resources

Categories

Latest News

Contact HMS

Ready for the ultimate credit card processing experience? Ask us your questions here.