Difficulties Processing Payments for Digital Goods
Digital goods vendors tend to be unfairly maligned within the credit card industry due to the higher-than-average chargeback rates associated with digital products. As a result, perfectly legitimate businesses can be subject to greater scrutiny and account limitations simply because they sell non-physical goods. If you sell digital goods, you’ve likely experienced some difficulty in landing an affordable merchant account that meets your needs. Fortunately, your options are expanding as e-commerce becomes more commonplace, and there are plenty of credit card processors that offer services like online store builders, marketing tools, and accounting software integration for competitive rates.
To help you find a provider that works for you, we’ve put together the following list of the best merchant accounts for digital goods. The companies on this list offer e-commerce solutions, marketing tools, software integration, and other useful tools for operating your digital goods business. They are also known to provide low-commitment contracts with transparent pricing and quality customer service. To find the right provider for selling your digital goods, be sure to research each processor’s products and features and compare pricing and terms.
How to Select the Best Digital Goods Credit Card Processor
When selecting a credit card processor for a digital goods business in the USA, there are several important factors to consider. Here are some specific things to keep in mind.
Compatibility with Your E-commerce Platform
Make sure the credit card processor you choose integrates well with your ecommerce platform. Many popular platforms such as Shopify, WooCommerce, and Magento offer a range of payment gateway options, so check which ones are compatible with your platform.
Support for Digital Goods
Not all credit card processors are equipped to handle the unique requirements of digital goods, such as automatic delivery or download links. Ensure that the processor you choose can handle the sale and delivery of digital products.
Credit Card Processing Fees
Consider the fees charged by the credit card processor, including transaction fees, setup fees, and chargeback fees. Make sure you understand how these fees are calculated and how they will impact your profit margins.
With digital goods, security is paramount. Look for a processor that offers robust fraud protection and data encryption, such as 3D Secure, CVV verification, and Address Verification Service (AVS).
Outstanding Customer Support
In the digital goods industry, customer support is crucial. Make sure the credit card processor you choose offers responsive and helpful support options, including email, phone, and live chat.
Do your research to ensure that the credit card processor you choose has a good reputation in the industry. Look for reviews and testimonials from other businesses in the digital goods industry to gauge their experiences with the processor. You can consider our review on this website, by simply searching for the processor in the search bar at the top of this page.
If you plan to sell digital goods to customers outside of the USA, look for a processor that supports international payments and accepts a range of currencies. Some processors may also offer currency conversion services to make it easier for customers to pay in their local currency.
Overall, selecting the right credit card processor is critical for any digital goods business in the USA. By considering these factors, you can find a processor that meets your unique needs and helps you grow your business.
Top Picks for Merchant Services for Digital Goods
Top Rated for Digital Goods Credit Card Processing
Helcim is a merchant account provider headquartered in Alberta, Canada, and Seattle, Washington. The company provides merchant services and credit card processing to both U.S. and Canadian businesses. Helcim offers traditional payment processing equipment as well as a feature suite called “Helcim Commerce,” which is intended to serve as an all-in-one business management solution for merchants across all of their sales channels.
Digital Goods Payment Processing: Why Helcim is a Great Option for Small Business Owners
When it comes to selling digital goods, accepting credit card payments is essential. But finding a credit card processing service that caters specifically to digital goods can be a challenge. That’s where Helcim comes in. Helcim is a payment processing company that is tailored to the needs of small businesses, especially those who sell digital goods. Here are a few reasons why Helcim is a great option for small business owners who sell digital goods and need to accept credit card payments from customers.
Accept All Major Credit Cards
One of the biggest advantages of Helcim for digital goods payment processing is its ability to accept all major credit cards. This means that customers can pay with their preferred credit card, which makes the buying process more convenient and can lead to increased sales. Additionally, Helcim provides a simple and intuitive online payment gateway that allows business owners to manage their transactions and view reports in real-time.
Advanced Fraud Protection
Another advantage of Helcim for digital goods payment processing is its advanced fraud detection and prevention features. Because digital goods are intangible, they are particularly vulnerable to fraud, which can be costly for business owners. Helcim uses state-of-the-art fraud detection and prevention tools to minimize the risk of fraud, protecting both the business owner and their customers.
No Hidden Fees or Long Term Contracts
Helcim’s pricing is transparent and competitive, with no hidden fees or long-term contracts. This is especially important for small business owners who need to keep costs under control. Helcim offers competitive pricing that is tailored to the needs of small businesses, with no setup fees or monthly minimums.
Helcim is a great option for small business owners who sell digital goods and need to accept credit card payments from customers. With its ability to accept all major credit cards, advanced fraud detection and prevention features, and transparent and competitive pricing, Helcim is a reliable and secure choice for digital goods payment processing.
No Monthly or Annual Fees
Super Low Processing Rates
POS, Mobile, and Online Payments
Sales & Support:
Host Merchant Services
Top Rated for Digital Goods Merchant Services
Host Merchant Services is a Newark, Delaware-based merchant account provider that is well-suited for most digital goods vendors. The company’s products and services include online marketing tools, an online payment gateway and virtual terminal, mobile credit card processing, gift and loyalty programs, merchant cash advance, and offshore merchant accounts. Host Merchant Services specializes in e-commerce businesses and provides a free website and email address to interested merchants. Host is a great fit for all standard-risk digital goods sellers and is also able to serve some high-risk business types.
Host Merchant Services has received only positive feedback on public forums, with most reviewers singling out the company’s customer service for praise. Host offers interchange-plus pricing with no early termination fees to all of its merchants, meaning that users will enjoy the most transparent pricing model and can cancel service without penalty. The BBB gives Host an “A+” rating, and CPO also gives the company an “A+.”
Why Host Merchant Services is a Great Choice for Digital Goods Payment Processing
If you are a business owner who sells digital goods, you need a payment processor that understands the unique challenges of digital transactions. Host Merchant Services is an excellent choice for businesses that need to accept credit card payments from customers who are buying digital goods. Here are some reasons why:
Secure Digital Transactions
Host Merchant Services uses the latest security technology to ensure that digital transactions are safe and secure. They also offer fraud protection services to help protect your business and your customers from fraudulent transactions.
Fast Payment Processing
Digital goods are often delivered instantly, so you need a payment processor that can keep up. Host Merchant Services offers fast payment processing, which means that your customers can complete their transactions quickly, and you can get paid fast.
Customized Payment Solutions
Host Merchant Services understands that every business is unique, which is why they offer customized payment solutions that are tailored to your business needs. Whether you need to accept payments through your website or mobile app, Host Merchant Services has a solution that will work for you.
Low Processing Fees
Processing fees can eat into your profits, especially if you are selling digital goods with low margins. Host Merchant Services offers competitive processing fees, which means that you can keep more of your hard-earned profits.
Host Merchant Services is an excellent option for business owners who sell digital goods and need to accept credit card payments. With their secure transactions, fast payment processing, customized payment solutions, and low processing fees, they are a great choice for any business that wants to streamline their payment process and improve their bottom line.
Host Merchant Services
Highly Rated Customer Support
Competitive Rates & Fees
Sales & Support:
Top Rated for Digital Goods Credit Card Processing
Based in Woodland Hills, California, PaymentCloud is a merchant account provider that specializes in serving standard to high-risk business types. The company’s products and services include point-of-sale solutions, mobile phone swipers, an online payment gateway and virtual terminal, EMV-compatible terminals, and merchant cash advances. This variety of payment options makes PaymentCloud a good option for selling digital goods.
PaymentCloud provides a dedicated account rep to all new merchants for the life of the account. The company has not received any negative complaints on consumer forums, and it customizes its pricing according to each merchant’s business type and processing history. The BBB does not maintain a profile for PaymentCloud at this time, but CPO gives the company an “A.”
PaymentCloud: A Great Credit Card Processing Option for Selling Digital Goods
As a small business owner selling digital goods, it is crucial to have a reliable and secure payment processing system that can handle your transactions efficiently. PaymentCloud is a top-rated credit card processing service that offers tailored solutions to businesses in various industries, including those that sell digital goods. Here are some reasons why PaymentCloud is an excellent option for digital goods payment processing.
High Approval Rates for High-Risk Businesses
Selling digital goods can put your business in the high-risk category, making it challenging to find a reliable payment processor. PaymentCloud specializes in high-risk merchant accounts, making it a great option for businesses that sell digital goods. They have a high approval rate, and their underwriting team understands the unique needs of high-risk businesses, ensuring that you get the best possible service.
Secure Payment Processing
Digital goods are often prone to fraud and chargebacks, making it crucial to have a secure payment processing system. PaymentCloud uses advanced fraud prevention tools and encryption technology to protect your business and customers’ sensitive information. Their chargeback mitigation tools also help to reduce the risk of disputes and minimize chargebacks, allowing you to focus on growing your business.
Customizable Payment Solutions
PaymentCloud offers customizable payment solutions to meet the specific needs of your business. They provide a range of payment processing options, including online payments, mobile payments, and point-of-sale solutions. You can also choose from a range of payment gateway integrations, making it easy to integrate PaymentCloud into your existing systems.
PaymentCloud is a great option for businesses that sell digital goods and need a reliable and secure payment processing system. With their high approval rates, secure payment processing, and customizable payment solutions, PaymentCloud can help your business grow and succeed.
Fast Approval of Most Industries
No Cancellation Fees
Sales & Support:
Top Rated for Digital Goods Merchant Accounts
Located in Chesapeake, Virginia, CDG Commerce is a great option for U.S.-based sellers of standard-risk digital goods. CDG has been privately owned since 1998 and offers a proprietary payment gateway (as well as a discount on Authorize.Net’s payment gateway), a virtual terminal, QuickBooks integration, sales reporting, security breach protection, and vulnerability scanning. CDG Commerce is a simple, low-cost, fully integrated online processing solution for sellers of e-books, music, movies, and software.
CDG Commerce only charges a low, fixed fee per transaction and offers competitive contractual terms, including no annual fees, monthly minimums, or termination fees. CDG also offers next day funding to most business types. CDG has earned an “A+” rating in our review as well as an “A+” rating with the Better Business Bureau.
CDG Commerce is a Reliable Credit Card Processing Option for Digital Goods Sellers
As a small business owner who sells digital goods, it can be a challenge to find a reliable and affordable credit card processing service that can handle your unique needs. However, CDG Commerce is an excellent option for those who want to accept credit card payments from customers who are purchasing digital goods.
Fast and Secure Digital Goods Payment Processing
CDG Commerce understands that digital goods are a unique type of product that requires quick and secure payment processing. That’s why they offer a suite of tools and features specifically designed for digital goods sellers, including secure file delivery, automated order processing, and fraud detection and prevention.
Affordable Pricing Plans for Digital Goods Sellers
Unlike some credit card processing services that charge high fees and rates for digital goods transactions, CDG Commerce offers affordable pricing plans that are tailored to the needs of small business owners who sell digital goods. With CDG Commerce, you’ll get competitive rates and transparent pricing, so you can keep more of your hard-earned profits.
24/7 Support for Digital Goods Payment Processing Issues
CDG Commerce also provides 24/7 support for any issues related to digital goods payment processing. Whether you’re having trouble with file delivery, order processing, or fraud prevention, their experienced team of experts is always available to help you resolve any issues quickly and efficiently.
CDG Commerce is an excellent credit card processing service for small business owners who sell digital goods. With their fast and secure payment processing, affordable pricing plans, and 24/7 support, you can rest assured that your customers’ transactions will be handled with the utmost care and attention to detail.
Low Rates & Fees
No Cancellation Fees
Compatible With Numerous Apps
Sales & Support:
National Processing offers several small business processing options and can assist digital sellers with identifying the right POS system or virtual terminal for their needs. The company offers two pricing options: one an interchange-plus program or a “zero-fee” program, both of which offer competitively priced rates.
National Processing has a clean reputation with just one complaint filed in the last three years, which is not concerning in nature. Our independent review finds National Processing to be a solid option for most digital businesses.
Why National Processing is a Great Option for Digital Goods Payment Processing
National Processing is an excellent option for small business owners who sell digital goods and need to accept credit card payments from their customers. With its robust suite of payment processing solutions, National Processing makes it easy for merchants to accept payments online quickly and securely.
Robust Fraud Protection
One of the key advantages of using National Processing for digital goods payment processing is its robust fraud protection measures. National Processing uses state-of-the-art fraud detection and prevention tools to minimize the risk of chargebacks and other types of fraudulent activity, which is especially important for merchants selling digital goods.
Offers Recurring Payment Models
Another advantage of using National Processing for digital goods payment processing is the company’s ability to handle recurring payments. Many digital goods merchants rely on subscriptions or other types of recurring billing models, and National Processing makes it easy to set up and manage these payments through its platform.
Offers a Variety of Integration Options
National Processing offers flexible integration options to help merchants streamline their payment processing workflows. Merchants can choose from a range of integration options, including API integration, hosted checkout pages, and more, making it easy to customize their payment processing setup to their unique needs.
National Processing is an excellent option for small business owners selling digital goods who need a reliable and secure payment processing solution. With its robust fraud protection measures, recurring billing support, and flexible integration options, National Processing is well-suited to meet the needs of digital goods merchants.
Best Option For Clover POS
Competitive Rates & Fees
Highly Rated Customer Service
Sales & Support:
Shopify is primarily known as an e-commerce platform for online merchants, but the company also offers a point-of-sale software solution for iPad and iPhone. The Shopify POS app can accept cards via a headphone jack card swiper, or a $129 EMV reader and includes features like inventory syncing with a web store, emailed receipts, automatic tax calculations, basic email marketing, and in-store refunds. These online payment options and the familiarity of the Shopify brand are great for people making digital purchases, as they will feel safe and comfortable using the service.
The Shopify payment service can also be paired with a Shopify online store, which comes with numerous customization options. Shopify POS is a great fit for digital sellers who would like to accept payments on-site using their phones as well as through online billing. Shopify has an “A+” rating with the BBB, and we give it an “A+” rating as well.
Shopify is a Reputable Option for Credit Card Processing
As a small business owner who sells digital goods, it’s essential to have a reliable credit card processing service. Shopify is a great option for businesses that sell digital goods and need to accept credit card payments from their customers. Here are some reasons why Shopify is the best choice for digital goods payment processing.
Secure Digital Goods Payment Processing
Shopify is one of the most secure payment processing options available for businesses that sell digital goods. Shopify’s payment gateway is PCI compliant, which means that it meets the highest level of security standards for payment processing. This ensures that customer data is protected and that transactions are secure.
Easy Digital Goods Payment Processing
Shopify makes it easy for businesses to accept credit card payments for digital goods. The platform has a user-friendly interface that allows business owners to set up payment processing quickly. Additionally, Shopify integrates with a variety of payment gateways, which means that businesses can choose the payment gateway that works best for them.
Flexible Digital Goods Payment Processing
Shopify’s payment processing options are flexible, which makes it easy for businesses to offer a variety of payment options to their customers. For example, businesses can accept payments through credit cards, PayPal, and other payment gateways. This flexibility ensures that customers can pay using their preferred method and helps to increase sales for the business.
Shopify is an excellent option for businesses that sell digital goods and need a reliable and secure credit card processing service. With its user-friendly interface, flexible payment processing options, and high level of security, Shopify is the ideal solution for any small business looking to accept payments for digital goods.
Easy to Use Store Builder
Integrated Payment Options
Mobile and Point-of-Sale Options
Frequently Asked Questions: Digital Goods Credit Card Processing
Merchant accounts for digital goods are specialized accounts designed to handle online transactions for digital products. These accounts facilitate the sale of goods that are delivered over the internet such as software, music files, e-books, online courses, virtual items, and more.
Finding the best merchant accounts requires researching and comparing different providers based on factors like fees, security, ease of setup, customer support, integration capabilities, transaction speed, and customer reviews.
When looking for a merchant account, consider factors such as the transaction fees, setup fees, monthly fees, contractual obligations, customer support, integration with your existing systems, and the reputation of the provider. You should also look for any specific features you need for selling digital goods.
Transaction fees are extremely important as they can significantly affect your profit margins. Some providers charge a flat fee per transaction, while others may take a percentage of the transaction value. It’s important to fully understand the fee structure before choosing a provider.
No, not all merchant accounts are compatible with all shopping cart systems. Most providers will list compatible systems on their website. If you’re using a less common shopping cart system, you may need to contact the provider directly to check compatibility.
Generally, a regular bank account is not sufficient for accepting online payments for digital goods. A dedicated merchant account often comes with additional features such as payment gateway integration, fraud protection, and the ability to accept different types of credit and debit cards, among others.
Most merchant account providers have systems in place to help you deal with chargebacks. However, policies may vary, so it’s important to understand your provider’s chargeback policy. Implementing good customer service practices can also help reduce the occurrence of chargebacks.
Some top recommended providers as of my knowledge cutoff in September 2021 include Stripe, PayPal, Square, and Braintree. It’s important to research and compare the features, pricing, and customer reviews of different providers to choose the one that best fits your business needs.
Most merchant account providers handle international transactions and support multiple currencies. However, fees for international transactions might be higher, and not all providers offer the same level of support for all countries and currencies. Check with potential providers to confirm their international capabilities.
The process can vary depending on the provider, but typically involves applying online, providing information about your business, agreeing to the provider’s terms and conditions, and setting up your account settings. You’ll also need to integrate the merchant account with your online sales platform or shopping cart system.