The internet has led to the continued rise of eCommerce, which uses various payment gateways when paying for goods or services. Thanks to this, customers today enjoy using newer, smooth, and more efficient payment methods. So, the issue of trying out different types of platforms and payment processors is a thing of the past. It’s great news as a business owner because the last thing you want is for your payment gateway to be confusing. Otherwise, your customers will be irritated by the process and abandon their carts altogether.
With this in mind, you need to be very careful with your choice of payment gateway. But how can you know the best payment gateway for your eCommerce business? Here’s a look at factors you should consider to help you choose the right payment gateway. Let’s get started.
What Is A Payment Gateway?
A payment gateway is a kind of software that processes debit or credit card payments. This system allows for a secure transfer of credit card details to the payment network from your website. After a successful transaction, you’ll be notified that the payment has been completed safely. The money is then deposited into your merchant account, and you’ll get a copy of the transaction details. The client usually covers the cost of the transaction.
The entire transaction process is complex. Many back-end components must work together to ensure funds get transferred from the client and into your merchant account. One of the most popular payment gateways is Stripe, and there are many other Stripe alternatives you can consider. With many payment gateways to choose from, it’s easy to see why you’ll need clarification about which option best suits your business.
What Factors Should You Consider When Looking For A Payment Gateway?
You must use a reliable payment gateway to improve your company’s cash flow and streamline client payment processes. And to help you choose a payment gateway, here are several factors you need to consider:
You first want to guarantee the safety of your customer’s sensitive financial details. Security is an essential factor when deciding the payment gateway to use. You shouldn’t overlook this more so because customers today prefer online shopping. It has led to cybercriminals looking for every way possible to get their financial information.
Knowing all this, you must opt for a payment gateway that offers security guarantees, such as compliance with level-1 payment card industry-data security standard (PCI DSS). This security standard on your payment gateway offers several benefits, including:
- Encrypted data transmission
- Data protection architecture
- Multi-layer protection against cyberattacks
Other security features to look for in a payment gateway include:
- IP geolocation
- Fraud monitoring system
- Address Verification System (AVS)
- 3D security
These security features help protect the financial transactions made through your payment gateway and secure your company’s brand image among your customers.
Types Of Cards Allowed
The cards accepted on most payment gateways are American Express, Mastercard, and Visa. But for a greater conversion rate for your potential clients, your preferred payment gateway should accept more types of cards. Examples of such cards include Diners Club cards or debit cards. Other upcoming payment methods that are becoming popular include Klarna, Google Pay, Apple Pay, and PayPal.
Regardless of how advanced a payment gateway might be, it’ll experience issues from time to time. When this happens, a customer support team should be on standby to immediately help with the problem. After all, you don’t want to lose money because clients are unhappy with the quality of customer support.
So, to ensure your customer problems get resolved immediately, you must choose a payment gateway that offers 24/7 support. If any issue arises during the payment process, it’ll be handled fast to avoid ruining your client’s online shopping experience. The support team should also be reachable through various platforms.
Multiple Currency Processing
Today’s world is a global village, so it’s easy to expand your eCommerce operations internationally. But to receive payments from clients across the globe, you must have a payment gateway that accepts multiple currencies. You must consider this to expand your eCommerce business to serve customers worldwide.
Clients usually prefer paying in their local currency to avoid costly forex charges. Accepting many currencies also enables faster and smoother processing of internal transactions.
Fees And Service Agreement Requirements
Another way to know the payment gateway to use is by checking their fee structure. This pricing depends on several factors, such as:
- Business sales
- Revenue consistency
- Kind of transactions done by the business
- Frequency of transactions
Knowing this, you must check the fees and service agreement requirements before choosing a payment gateway. Online invoice payment gateways include three different fees: set-up fees, transaction fees, and monthly fees. Others charge fees depending on your usage, while some charge membership fees.
You must consider all these fees as you want to be within your allocated budget. Otherwise, this might interfere with other aspects of your business operation.
The transaction processing speed varies from one payment gateway to another. Ideally, it would help if you opted for a payment gateway that enables your customers to finish a transaction in a few seconds after it’s initiated. The quick transfer of money from the client’s account into yours helps to improve customer experience and satisfaction. This high processing speed also enhances your company’s operational efficiency.
It’s your duty as a business owner to offer your clients the quickest and best possible service. Using the right payment gateway is one way to streamline the checkout process. But the many payment gateways can make choosing one an overwhelming task for even the most experienced business owner.
Luckily, this guide has eased this issue by explaining in detail all you need to consider when looking for a payment gateway. So, you can now select a payment gateway that offers your clients a personalized experience and a smooth checkout process. It will boost the brand image of your online business and win you more clients.