Get your credit cards ready because it’s that time of the year again! Shopaholics’ favourite season – Black Friday and Cyber Monday are the biggest two days for shopping apart from Boxing Day and it’s when the most desirable items such as electronics, clothes, gadgets and toys will go on massive sale allowing for major savings for consumers. Not only should store owners be ready for early birds lining up in front of their store beginning before sunrise, e-tailers also should look to implement efficient online payment processing solutions to achieve maximum success and never miss an order.
Brief History of Black Friday
In the U.S., Black Friday is the day after Thanksgiving, which falls on the fourth Thursday of every November. It has been traditionally regarded as the beginning of the Christmas shopping season in the States.
The earliest documentation of the phrase “Black Friday” dates back to 1961, originated from Philadelphia. The phrase was coined by Philadelphia police to describe the heavy traffic after Thanksgiving, during which they weren’t allowed to take the day off and often had to work overtime. The term was forgotten and later regained momentum in the 1980s when the day was being marketed as a huge shopping day. As the phrase became widespread, retailers began to associate the term with pulling in huge revenue as Black Friday became the shopping event of the year.
Prior to the turn of the Millennium, it was a common practice for stores to open at 6am. As the years went by, stores started opening earlier every year. Since 2012, most stores open at midnight while others cause customers to camp outside stores for hours. However, this became a health issue because customers camping outside of the stores posed safety risk by blocking emergency exits. Moreover, workers often call in sick on Black Friday to enjoy the shopping deals themselves and get a four day long weekend, so retailers have had to clamp down and line up their reserves to ensure adequate coverage (Brief History of Black Friday).
Black Friday for Americans
It is speculated that many retailers in the US make most of their profit during Black Friday, offsetting an overall financial loss for the rest of the year (Jan – Nov). It’s an exciting time when red ink turns to black! Black Friday is the beginning of the holiday season when retailers would no longer struggle to keep their heads above water (Black Friday for Americans).
Black Friday for Canadians
From a Canadian perspective, residents in the densely populated Lower Mainland in Canada have always been attracted to cross-border shopping into the U.S. As this holiday has become more popular, more and more Canadians have flocked across the border to look for superior deals. However, since 2008, given the weakness of the Canadian dollar, several major Canadian retailers ran Black Friday deals to discourage shoppers from leaving the country. A turning point occurred in 2012, which saw the biggest Black Friday event in Canada, as Canadian retailers embraced it in an attempt to keep shoppers from travelling across the border. Canadians are generally used to shopping for big sales on Boxing Day, but Black Friday has certainly established itself as another popular avenue for bargain shopping.
Tips for Black Friday Shopping 2016
According to the Globe and Mail, here are 7 useful tips that consumers can use for this year’s Black Friday shopping:
- Start your research early: most of the big retail shops send out flyers to have you informed about their Black Friday deals
- There are also multiple websites and blogs available to compare deals between stores, so utilize these resources as part of your research
- Shipping is also a key factor in online shopping this Black Friday as some retailers like Wal-Mart and Amazon have increased their shipping prices, so watch out for the hidden costs in the fine print
- Using Debit instead of Credit is a good way to not overspend this Black Friday. It will make you careful to not spend funds that you may not have available
- There will be more online shopping done this year, so merchants who operate an E-commerce store should ensure efficient, smooth and seamless online payment processing solutions
- Earlier versions of big name gadgets such as Apple products and GoPro will have good deals
- Amazon and Best Buy will look to be leaders with some prime deals
Cyber Monday and Online Payment Processing Solutions
What are Online Payment Processing Solutions?
Online payment processing solutions are web based systems that accept and transfer payment electronically. The technology allows brands and organizations to accept payment through credit and debit cards via web purchases. Cyber Monday is a shopping event catered to E-Commerce. Therefore, implementing reliable online payment processing solutions is critical for realizing strong Cyber Monday sales!
For a business to accept online payment service, they must have an Internet Merchant Account and Payment Gateway. An internet merchant account is a type of account that allows businesses to accept payments through various methods such as Debit and Credit cards.
Payment Getaway is a merchant service that authorizes payment transactions for businesses, such as authorizing a customer’s credit card and finding out whether they have passed the credit limit, and then it either accepts or declines the transaction.
A customer fills out the payment information on the checkout webpage and the information is sent to Payment Gateway. Payment Getaway encrypts the information and transfers it to a series of approved online payment processor intermediaries. The system authorizes the payment and the payment is either accepted or declined. This cycle takes about 2 seconds. The gateway sends the transaction to the payment processor and ultimately allows the transaction to transfer funds from customer’s bank to the merchant (Online Payment Processing Solutions).
Historical Fact about Online Payment Processing Solutions
Pizza Hut claims the title of “first-ever online purchase”. An order of a ‘large pepperoni, mushroom and extra cheese pizza’ was the first physical purchase over the internet in 1994. It was ordered through Pizza Hut’s digital ordering hub called “PizzaNet”. The network eventually made its way to several restaurants in 2001 (Pizza Hut News).
Cyber Monday Sales vs. Black Friday Sales
Deal News found that Cyber Monday has better deals on the following: Androids, data storage, laptops, travel, clothing and beauty vs. better Black Friday deals on the following: tools, toys and headphones.
Benefits of partnering with MONEXgroup’s Safe and Secure Online Payment Processing Solutions
Let’s take a look at the two most popular online payment processing solutions we provide to our merchants:
Orbital Payment Gateway Solution Ensures Safe and Secure Online Payment Systems
Our Orbital Solution is a fully customizable online payment processing solution for sophisticated or basic shopping cart integration; it enables safe and secure online payment processing systems processing directly on the merchant’s website. This gateway facilitates enhanced shopping cart functionality, offering billing and customer support features.
Some benefits of the Orbital Payment Gateway Solution include:
- Accepts Visa®, MasterCard®, American Express®, Discover Network® and Gift Cards
- A PCI Compliant, secure and reliable solution for protecting cardholder information
- Generates E-Receipts and communicates them with customers, sends alerts over their payment and delivery cycle
- Seamless software upgrades ensure your business is always compliant with ever-changing industry security standards and regulations
- Advanced encryption technology and fraud detection software safeguard sensitive data
- Supports Verified by Visa and MasterCard SureCode plugins, providing protection from chargebacks
Hosted Checkout Solution for Simplified Safe and Secure Online Payment Processing Solutions
Our Hosted Checkout Solution is a simple integration for any website regardless of the back-end. The E-Commerce Hosted Checkout Solution allows merchants to accept online payment processing solution by effectively outsourcing the secure processing of transactions off-site. Through Hosted Checkout Solutions, merchants can save time and money by adding a highly secured and PCI Compliant plug-and-play checkout into their hosted payment pages with a customizable checkout.
Advantages of the Hosted Checkout Solution:
- Accepts Visa®, MasterCard®, American Express®, Discover Network® and Gift Cards
- Provides online shopping websites with additional protection layer by leveraging a proven secure and reliable hosted checkout solution
- Easily integrated and reliable checkout solution for quick online payment processing
- PCI Compliant and secure add-on which is incorporated to any webpage which requires a hosted payment checkout solution
- Improves the online shopping experience with simple and speedy processing at checkout
When partnering with the number one Canadian merchant services in Canada; MONEXgroup will ensure you are equipped with the latest, safe and secure online payment systems with low cost. Request a Cost Comparison Analysis today.
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