Things to Know about Payment Gateways

In eCommerce business, having a secure payment method is extremely important. As online shoppers need to use sensitive information while making payments through debit cards, credit cards, net banking etc., the payment gateway your business use should be a secure one. The convenience of the customers and security of the customers’ information should be the foremost priority of every online store.

What is a payment gateway?
A payment gateway is a service for an eCommerce business that processes payment such as debit card, credit card etc. by transferring important information between the front-end processor (bank) and payment portals (website).

Tips to Choose the Right Payment Gateway Service Provider
With a wide choice of services providers available, choosing the best one is important. However, it’s quite a challenging task to find the right payment gateway for your eCommerce website. There are certain things that need to be taken into consideration while choosing the payment gateway service provider for your eCommerce business.

• Processing speed
The processing speed of different payment gateways is different. If you want to provide the best user experience and make better sales, you should look for the one that can complete the transaction quickly i.e., in a matter of a few seconds. Processing speed is critical in eCommerce business as it can make higher the rate of cart abandonment and provide a negative impact on conversion rate due to slow checkout experience.

• User experience
When you offer a consistent user experience, it helps in building trust and making better conversion rate. The set up of the payment gateway can influence the customer’s perception of the transaction and impact customer experience. Hosted payment gateways offer easy setup and recognised by most customers offering a sense of security and trust.

• Encryption standards
Considering the encryption standard while choosing a payment gateway is a vital factor. As the service provider will be handling the sensitive data of the customers, even a slight breach can shatter the reputation of your company. Make sure to choose the one that offers fraud detection tools like secure tokenisation of online transactions. Removing card data entirely takes the security factor to another level.

• Compatibility
Look for a payment gateway that offers easier integration with other technological systems in order to maximise the user base. As most payment gateways strive for compatibility, choose the one that offers seamless integration with your present eCommerce platform and offers a smoother customer experience. A good payment gateway service provider should offer immediate technical support and customer care whenever required.

• Invoicing facility
Choosing a payment gateway that has built-in invoicing capabilities would help in streamlining your payment process. When you have this feature available in the system, it may reduce your dependency on other platforms.

• Transaction fees and charges
Considering the costs and fees related to each payment gateways is important while choosing your payment gateway. Based on transaction amount and volume, payment gateways offer different types of fees and charges. Typically, payment gateways charge a flat monthly fee with no additional costs for other transaction types. As different service provider offers a different fee structure, look for the one that suits best for your business.

• International transactions
If your eCommerce store also deals with international customers, choose the payment gateway service provider that handles domestic as well as international transactions. It’s good to have one service provider for both domestic and international transactions rather than having separate service providers.