Payment Gateways are a staple for e-commerce businesses. A Secure Payment Gateway ensures customer loyalty and trustworthiness. They help streamline payments and improve your cash flow resulting in overall better cash management.
Imagine this! You are a customer shopping online. After moving all your required products to the shopping cart you proceed to pay but because of some glitch with the payment gateway, you are unable to make the necessary payment. You are bound to get frustrated after several attempts and abandon your cart.
Data shows ‘inconvenience during check-out’ as one of the most common reasons for cart abandonment. No matter how advanced and aesthetically appealing your website is, if your customers experience difficulty trying to pay for a product, you will lose sales. The right payment gateway will ensure low percentage of cart abandonment.
While there are multiple top-rated payment gateway providers, a secure payment gateway that suits your business requirements is what you should look for.
To make a well-informed decision, go through these few points while doing your research for the perfect payment gateway provider for your business:
Pricing – Payment gateways usually either charge a monthly processing or a per-transaction fee. Some may charge only one of the above or sometimes both. Choose a payment gateway that charges reasonably and prefer those with per-transaction fees rather than a monthly amount.
Some processors offer gateway integration with no initial set-up fees but they may also charge higher processing fees.
Study the pricing structures of potential payment gateway providers and choose the one suited most for your business.
Hosted vs. Integrated Payment Gateway – A hosted payment gateway will take your customer to the processor’s website to make the final payment, whereas with an integrated payment gateway the customer does not have to leave your website.
Hosted gateways tend to lengthen the process and in case of any glitch or error the customer may not want to go through it again. In contrast, an integrated gateway ensures a short and smooth process hence it is a preferred choice with businesses.
Secure Payment Gateway – Customers are wary of giving out their card details but a secure payment gateway ensures protection from data security risks and frauds. An important feature of a secure payment gateway is that it should be PCI-DSS compliant.
Also, ensure that your processor has Fraud Prevention Tools in place for security against any financial risk and frauds.
Mobile Payments – Mobile shopping is rampant in this day and age. A good payment processor should work seamlessly no matter the type of device used to make the payment.
Processing Volume – Some processors set an upper limit of monthly transaction processing. Your processing volume will not be a problem if you are a small business with limited monthly transactions. However, if your business processes a large number of transactions, be sure to notify the same to the payment gateway provider.
High Risk Payment Gateway – There are certain industries that are labeled as High risk by payment processors. Industries namely online gaming, Gambling, Online Pharmaceuticals, Credit Repair, Forex, Dating websites, etc. fall under this category.
If you operate one of the above businesses, you will find it difficult to obtain a payment gateway from a regular processor. In this case, look for processors who specialize in High Risk Payment Gateway.
International payment gateway – You may only be selling locally now but if you ever decide to expand your audience, you will need a different payment gateway that is able to process international payments. A local payment processor will work if your audience is local only. But going global will require an International Payment Gateway. This gateway may come with higher fees but also has additional features such as multi-currency support, multiple language interface, alternative payment options, etc.
Customer support – An efficient, 24*7 Customer Support ensures you are not left grappling for answers when the payment gateway experiences any technical glitches. A gateway should always have an account manager assigned who is present to answer your queries and resolve any issues swiftly.
Review the payment process – Go through each and every step of the payment process that a potential secure payment gateway will offer. Experience it as a customer and look for the different features and benefits that it can offer. Also, note down any inconvenience that may occur during the process. This will give you a fair idea of how efficient and effective the payment gateway will be once integrated with your website and will help in making a well-informed decision.
Do your own research as well as ask for recommendations. When you have finally narrowed down your list of potential payment gateway providers, weigh the pros and cons of each processor and make a final decision based on the payment gateway that will suit your business model the best.