One big question for any online seller is “How do I process payments from customers?”. Most online businesses use a solution known as an “Online payment gateway”. If you want to provide the best buying experience for your customers, you will definitely need one that is good and reliable.
According to payment processing firm WorldPay, alternative payment methods (anything other than traditional credit or debit cards) will account for 59% of all transactions by 2017, up from 43% in 2012. Roughly 50% of online shoppers would cancel their purchase if their preferred method of payment was not available.
Since the checkout can make or break your customer’s ecommerce experience, choose the best payment gateway possible for your store and your checkout UX.
The more payment methods are available, the more customers an online store has access to and the more purchases can be made. Adding an array of additional payment methods means that customers are not restricted to solely using credit cards to make a purchase. If you sell internationally, your payment gateway must provide for the collection of payments that are made through international cards like Visa and MasterCard. If you have a broad domestic consumer base, your payment gateway should be able to collect payments through debit cards and net banking modes as well.
The best way is to opt for a payment gateway integration that provides for payment collections through numerous modes. A worthy payment gateway that offers you more than 100 payment collection options is better, as the customers today use numerous payment modes for making online payments. A payment gateway is a powerful tool that helps to reassure visitors to your store about your trustworthiness.
A payment gateway is a merchant service provided by an e-commerce application service provider that authorizes credit card or direct payments processing for e-businesses, online retailers, bricks and clicks, or traditional brick and mortar. The payment gateway may be provided by a bank to its customers, or by a specialised financial service provider as a separate service.
When choosing a payment gateway, there are three major factors you need to consider: Transaction fees, Monthly fees and Setup fees. These factors will vary by processor, so make sure you choose one that meets your needs and budget.
When you process a payment, some gateways will keep a small part of the charge for letting you use their app. You will either pay a flat fee per each transaction, an established percentage from each purchase or a combination of both charges. These charges encompass a transaction fee.
Some payment gateways will charge a subscription fee to let you collect money with their app. This monthly charge might vary based on the volume of payments being processed or the number of bank accounts where the payments are going.
Setup fees include any costs that might be associated with setting up your payment gateway account. You will only need to pay this fee once.
Whichever platform you’ve chosen, there will be a range of off-the-shelf plugins or extensions to help you integrate with major payment gateways.Wherever possible, choose a payment gateway that already has a plugin for your platform.
Technically there are three ways to take payment details from a customer.
Payment processing is critical to your business, so you’ll want to work with a provider who has a good reputation in the industry. Some payment providers have had problems with outages. Others have a reputation in some circles for blocking merchants’ money without due cause. If you haven’t heard of a particular payment provider before, be a little extra careful before signing up with them
Some businesses are considered by payment providers to be ‘high-risk’. This is generally because of the sector they operate in.
Some high-risk sectors include:
You do not necessarily need to limit yourself to one payment gateway. Lots of ecommerce platforms allow you to offer multiple payment options to your customers. The most popular ‘secondary’ option to offer is PayPal. Even if you do not use PayPal as your main payment gateway, consider offering PayPal as an alternative way for customers to pay as a backup in case of any problems with your primary payment gateway or merchant account.
Do not let payment gateways be roadblocks to setting up a successful online business. Make sure to choose the suitable option for your business. However, it is too easy to become overwhelmed by the plethora of payment gateways online. Hopefully this blog will provide you a fair idea about payment gateways and how to choose from what, for your business.