You need to be able to make payments as a business. It can be overwhelming for new entrepreneurs to navigate the many financial options available when they launch their e-commerce website .
You must also consider the logistical and technical challenges associated with setting up a new gateway payment system. It is important to consider your customer’s convenience and security.
This post will discuss the factors you should consider when choosing a payment gateway for your business.
Why are gateways so important?
A payment gateway, which is also known as a merchant service, is used to authorize credit card transactions.
Once you have taken a customer’s credit card information, they must be sent to a payment gateway. The information is then forwarded to an acquiring bank and to the issuing credit-card company.
The credit card company will then send a reply informing the vendor if credit is available. If the answer is affirmative, the transaction will be processed.
Many features of payment gateways, such as fraud detection, are available to banks as an additional service. You can see some of the top Mageplaza payment gateway integrations, such as stripe and Moneris. SagePay and Cartasi. They all work with the One-Step Checkout plugin if you need an optimization tool to your checkout page.
We’ll now move onto the important things to consider when choosing payment gateways to suit your business.
Payment flow that is appropriate
Your payment gateway should be able to scale with your business. So that you can set up a payment gateway for a website, it is important to choose the right payment flow.
Customers who wish to pay with the primary payment gateways have the following options:
- Website with integrated payment forms. The details are sent to a secure gateway through the form.
- Redirect for payments and iFrame: Users will be directed to a secure hosted payment page, or they can place their information on an embedded iFrame. This option is more convenient for developers as it takes less time to integrate.
- Funds are held until the administrator gives the authority.
Location and incorporation
Online payment gateway providers will require that you are incorporated. You will usually be incorporated in the place where you live or operate your business. This is not always true.
We’ll be discussing two groups to make it easier: the US payment providers and European payment providers.
A US incorporation will usually link you with an acquiring bank in the US or a payment provider in the US. European incorporation allows you to be a contractual payments provider as well as the bank behind it.
It is possible to connect with US processors if your company has a US registered address. If your company wishes to work with a US bank and processor, it must incorporate in Europe.
Many payment service providers operate in Europe and the USA. This allows you to use both payment gateway services within the two countries.
Gateway’s security policies and anti-fraud policies
There are many payment gateways that specialize in fraud detection. This feature allows you to identify suspicious activity and stop it from being processed.
Most shoppers will happily shop at your store and pay their bill. However, there are a few who will attempt to rob you. They might attempt to pay you with money stolen from your credit card account. Some people will claim that they didn’t get the product even though they did.
While most online merchants will reimburse the money stolen or reship the product that was lost, these are still business expenses. This can quickly add up.
To avoid fraudulent transactions, you will need to find a processor who works well for you.
Also, you need to choose a processor that protects your customers’ payment with the most recent data security. You will need to use technologies such as tokenization, fraud management tools and point-to-point encryption.
Average transaction amounts and frequency
There are many payment providers that offer tiered pricing based on transaction frequency and amount. It is important to choose a package that suits your needs.
You need to choose a payment provider that is flexible enough to adapt to your business’s needs as it grows.
Service agreement and fees
Payment gateways and payment processing are often based on the type and amount of transactions a business conducts (online or in-person), so it is important to compare your business model with the gateway’s fee structure and the payment provider.
Some services may require contracts and set-up fees. They might also charge transaction fees if the order volume or order expected at the time the service was established is not met.
Models of supported business
Make sure that the payment processor you select supports your business model. If not, why go through all the compliance only to have it rejected?
Many providers offer a list of businesses that they don’t support. It is a good idea to first look at the list, then take your time and study it. To get pre-approved, contact a representative of your company if you have any questions.
You should also note that there are two types of payment gateway providers. The one that is purely ecommerce (low to moderate risk) and those that are high-risk processors.
High-risk processors are businesses that require more assistance from a payment partner to manage risk and detect fraud. This ensures that both the account and customer are secure when they make an online purchase.
Here are some high-risk industries.
- Adult Entertainment
24/7 customer support
Many payment providers don’t offer customer support. Users should follow the manual instructions to resolve any issues.
Avoid being put in this situation by checking beforehand whether the provider provides live technical support within the normal working hours to resolve any technical issues you may encounter.
You want to be able to reach a provider 24 hours a day in the event of an emergency. Email is fine for most issues but it’s better to be able to chat or phone a live person.
More to you
A combination of these factors makes the best payment gateway: Technology, experience, ethical values and alignment, security, innovation, and security. They will do their job consistently throughout the partnership, not only in the beginning but throughout.