Once you’ve set up your e-commerce website, your next step is to integrate a payment gateway for your business. A payment gateway is vital as this will enable instant payment, credibility for the merchant, and security for both your site and the customers.
In this article, we’ll provide you with a list of several things to consider before you choose the right payment gateway for your business.
A payment gateway is a merchant service that processes credit card payments for e-commerce sites and traditional brick and mortar stores. It encrypts credit card details and passes sensitive information securely from the customer to the acquiring bank via the merchant. It serves as the bridge between the seller and the customer.
When creating a payment gateway list to choose from, there are four (4) types to consider.
A hosted payment gateway directs your customer away from your website’s checkout page. Once the customer clicks the gateway link, they will be led to the Payment Service Provider (PSP) page, where they will fill in their payment details. Once the payment is made, they will be redirected back to your website to complete the checkout process.
A self-hosted payment gateway collects the customer’s payment details within the merchant’s website. Once the customer’s information has been collected, the data will be sent to the payment gateway’s URL.
With this type, an Application Programming Interface (API) is seamlessly incorporated within your website. In this setup, the customer will be requested to enter their credit or debit card information directly on the merchant’s checkout page, and the API processes the payment.
Local bank integration processes payments by redirecting the customer to the payment gateway’s (or bank’s) website where they will be requested to enter their card and contact details. Once payment is made, the customer will be redirected to the merchant’s website, where they will receive a notification upon redirection.
Now that you have basic knowledge of what a payment gateway is, it’s time to take a look at the factors that you need to consider before deciding on which payment gateway provider to choose for your e-commerce business.
A secure network should be your top priority. Customers’ information must be safe and secure when they make an online transaction with your website. Make sure that your provider is compliant with information security standards and is PCI-certified.
Customers are always looking for smooth, convenient, and hassle-free transactions. If your checkout procedure requires too much time, effort, or personal information, your buyer might abandon their purchase and turn elsewhere.
Keep in mind that your provider should have a checkout experience that is receptive to different mobile devices and network types.
Most payment gateway providers have detailed instructions on how to integrate the payment gateway to your website. It’s imperative to consider this, primarily when you work with a small team of developers.
If your products and services are available globally, make sure that your payment gateway can adhere to this. Determine if your provider can accept credit or debit cards and currencies based on different countries.
Make sure that the pricing of your payment gateway provider fits into your company’s budget. Pricing for payment gateways is usually based on the type of transactions that your business conducts, along with transaction frequency and business sales.
Your merchant account is where you will receive the funds processed by your site’s payment gateway. Merchant accounts provide an extra layer of security for both the customer and the seller.
Technical problems can be inevitable. Check whether your provider offers live technical support in case you need to resolve technical issues quickly.
Choosing the right payment gateway provider for your e-commerce business shouldn’t be tough nor come at a hefty price if you understand your business goals and needs. With the right payment gateway, you can improve your brand’s customer experience, increase your credibility, and grow your profitability. All you have to do is go through the factors that we have listed above to weigh your options carefully and make the right choice.