The life of any eCommerce marketplace platform mainly depends on how far the payment transaction is secured. With the help of payment gateway you can assure your customer to have a safe online purchase and this in turn increases your customer base. Let us have a detailed analysis about the payment gateways.
What Is A Payment Gateway?
The payment gateway acts as a bridge between the portal and the payment processor and helps to receive the payment from the customer. It takes the sole responsibility of securely transferring the customer’s payment to the owner of the portal. The payment gateway also authorizes the payment and checks for data entered to process the transaction. The transaction takes place on the portal the process will be carried out in the background and the payment gateway ensures that all the customer information like credit card details and many more will be kept
The working process of Payment gateway
The e-commerce owner doesn’t need to have any technical knowledge about the working process of the payment gateway with the portal. They can simply integrate the payment gateway with the portal and it will start working immediately. To know how exactly it works.
- At the time of checkout, the customer will fill the payment details and will proceed with the process.
- The details are encrypted by the payment gateway and the information is sent through a secured channel to the payment processor.
- The next process is carried by the payment processor. The processor will verify the payment and will deduct the amount from the customer’s account.
Types of Payment Gateway
Hosted (external) payment gateway
The third-party service like a Payment service provider (PSP) is utilized by the hosted payment gateways to complete the payment transaction successfully. At the time of checkout, the customer will be taken away from the portal and will land on the service provider page. The customer will enter his details like credit card number or the e-wallet or the bank details. Once the details are verified the service provider will carry out the process.
Integrated (direct or shared) payment gateway
The direct integrated payment method will process the payment without making the customer leave the portal or redirecting him to any service provider’s page. Once the customer clicks on the purchase button the gateway and the processor will get the data. This is quick and easy to set up and this is a perfect choice for small businesses.
Things to Consider Before Choosing a Payment Gateway for Your e-Commerce
When you are more conscious about your budget then you need to go for a service provider that has zero sign-up charges. Before signing up the contract you need to go through the fee structure and check whether there are any hidden charges.
- Payment Aggregators Vs. Merchant Account
The payment aggregators are the financial service providers that support the merchants by looking into the contracts and handle all payment methods. Whereas the merchant account is a type of bank account that will let the customers use their credit cards and debit cards and handles the settlement of the payments. You need to select the one that suits your business.
- Payment and Currency Options
Make sure that your payment gateway supports multi-currency payment options. Because your portal will have a global reach once you start promoting them so you will get international customers who have their currency system. Only a multi-currency payment facility can support you to have a hold on your global audience.
- Products-gateway compatibility
We may have invoicing software and may need to integrate our payment gateway with the software. The payment gateway we select should be compatible with all types of third party integration.
Top Payment Gateways to Consider
this is one the most accepted digital payment methods that has proven success by boosting up the checkout conversion rate by 44%. PayPal offers fraud protection and it gives its customers a live support.
It is a convenient and trusted way to pay that millions of online customers use. Amazon pay is known for its responsiveness and customers are highly satisfied in using them on their mobile phones.
This focuses on small-to-medium-sized businesses and known for its flexibility. Apart from normal payment services they also support services like recurring and subscription billing.
Stripe is the best application for e-commerce. Customers can buy products directly from a tweet with easy checkouts. Stripes through its sigma services delivers the real-time reporting that makes you to analyze the sales and lets you to improve your operations.
Worldpay covers all business sizes by providing omnichannel payment solutions. With WorldPay, you will find more than 300 ways to pay and it mainly focuses on your future growth and delivers service accordingly. It supports a monthly payment option.
This method is known for its simple site integration and it supports more than 15 different languages and almost 87 currencies. You will find easy to incorporate payment processor and has customizable in-site checkouts.
The division of PayPal and saves the customers time without making them re-enter their information every time they need to pay. The merchants can enjoy the easy data migration feature. It also provides advanced fraud protection. The admin can avail of the dynamic control panel.
A customizable payment solution through a flexible software. It also integrates quickly with open source. Merchants receive same-day payment. With Wepay, refunding the amount to the customers is easy.
The smart and simple payment gateway that is trusted over millions of businesses. It has an extra layer of security and highly scalable. It owns a dedicated team that can support you whenever needed. It gets you advanced technologies like tokenization and point to point encryption.
How to Choose The Best Payment Gateway
- Digital security
When it comes to being online, people are much concerned about the security of their payment. There are lots of security threats like theft, phishing, data security breaches, malware, spyware and many more. So the payment gateway should provide high security and maintain complete privacy.
- Onboarding Timeline
The process of adding a new merchant should be simple and fast and should allow the merchant to access the payment gateway. So boarding a merchant should be hassle-free with your payment gateway.
- Ease of Integration
The real success of your online store relies on how far the software is integrated with your store. The payment gateway should have simple procedures to get integrated with your portal.
- Mobile optimization
Always keep in mind that most of the customers that visit your portal will be a mobile user. If you are not concentrating on mobile optimization then it means you are losing the major market. Let your payment gateway be well mobile optimized.
- Customer support
As we may not be technically strong in understanding the working process of the payment gateway, we need hand-in-hand support from the service provider. This is to ensure that our portal runs effectively without any complication when it comes to the payment process.
- High-risk business
We all know, people all over the world will visit the portal and will try to buy the products using their currencies. There is a lot of risks if we failed to handle it properly. Make sure that your payment gateway understands the importance of delivering a reliable service.
The experience that customers can always keep in mind is all about how comfortable they were while transferring the amount and buying the product from your portal. You need to assure that your customers get the best and secured service through your trustworthy payment gateway.