Advanced technology has enhanced online businesses where service providers create customer-friendly sites to view and purchase products. So, if you already have an online business, you understand the need to create an interactive site where customers can find relevant information and easily transact.
It might be easy finding customers and marketing your products to them. However, it would be costly if your company lacks a comprehensive or straightforward payment system. You could even lose your loyal customers leading to loss of market segment and revenue.
Below you will find a breakdown of the things you need to consider to keep your company’s payment gateway secure and straightforward. Also some factors to consider while choosing a payment gateway provider.
What is a payment gateway?
A payment gateway facilitates online payment processes meaning that it would be hard for you to process payments without it. It is a framework that facilitates communication between banks to allow credit card authorization and payment processes.
In other words, the payment gateway enables charges on the customers’ cards whenever they enter their card information on your site for a product or service. These servers and software transmit the information to the banks and respond.
Is a payment gateway the same as a payment service provider?
No. A payment service provider is a third party that enables you to accept your customers’ online payments at a fee. In most cases, businesses, especially startups, use a third party if they lack the appropriate credentials or resources to establish their payment gateway. Note that you won’t have to ensure PCI-DSS compliance with a payment service provider or create a fraud protection system in payment processes.
Considerations when choosing your payment gateway provider
- The payment flow- If you just started your online business, you need to select a payment gateway that will scale along effortlessly as your business grows. Besides, the site you choose should have an integrated payment form that will enable secure transactions.
- Choose the most suitable product- Since you need a payment gateway for your online business, you need to consider the most suitable, secure, and adaptable payment gateway for you to receive payments hassle-free. The addition of these gateway on your site should also be swift, especially with an expert’s help.
- Enhanced payment safety and security- The current trends in e-commerce provides numerous competitors and threats in the business world. Therefore, you need to take the online experience in your site to a higher level. Choose a payment gateway that customizes the payment experience and reflects your brand’s color palette, logo and typeface. The provider should also be certified by PCI-DSS for security standards.
- Fees- Your payment gateway’s costs should be determined by your business transactions, sales, transaction frequency, target market, and revenue consistency. It would be best to compare how your business model coincides with the fee structure and make appropriate decisions to maintain profitability and smooth services to your customers. For instance, you may settle on contracts or setup fees based on a specific transaction and order volume.
Understanding your business needs is the first step in selecting and integrating a suitable gateway provider. Making the right decisions could bring immediate positive effects on your brand’s profitability and customer experience. All you need is to understand the discussed insights before choosing and implementing the provider.
Story by Brad Bernanke
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