It is just as crucial, if not more so, to choose the appropriate payment gateway for your online store as it is to design the site itself. Customers expect having a pleasant experience; thus, having a payment gateway that annoys them while they are trying to check out might cause a significant increase in the number of carts that are not completed.
You aren’t sure how to choose the payment gateway, are you?
How Does Payment Gateway Function?
Payment gateways make it possible to make transactions even when a physical credit card is not available, which is why they are an essential component of any e-commerce platform. (Companies like Stripe, Square, and CardPointe are examples of those)
When a customer enters their credit card information for online payments, the gateway immediately establishes a safe, encrypted connection with the card-issuing bank. After that, the bank does a verification check and verifies the purchase. The ideal situation is one in which customers simply see a straightforward checkout form.
1. Security Capabilities of the Payment Gateway:
Encryption of data occurs when a user’s web browser reads and displays the data. When this occurs, the transaction details are sent from the gateway to the payment processor that is used by the gaining bank for the seller. But the security dimension is critical for a payment gateway. Why you ask? Because it needs to fulfill all the steps below for a secure transaction.
Responding To The Inquiry:
The payment request that pertains to the merchant and the client is sent to the payment gateway for authorization by the processor. After the portal has received this answer, it will then send it to the site or interface that will handle the processing of the payment.
Checking The Delivery Address:
The payment gateways conduct a comparison between the delivery address provided at the payment gateway and the one listed in the database.
Checks using the AVS system:
These are carried out by the payment gateway in the event of transactions using virtual cards. Checks using the Address Verification Service (AVS) are used in the fight against online fraud. When a user’s billing address and bank address do not match, the Automatic Verification System (AVS) will not work properly.
Analysis Of Velocity Patterns:
It is a method for detecting fraudulent activity that is used by payment gateways. The recurring transaction patterns are reviewed within a set period as part of the Velocity pattern analysis. This is done to either prevent the same patterns from occurring again or, if they do, warn the card’s owner.
It is another function of payment gateways that enables you to monitor locations of transactions and report any that seem to be erroneous.
2. Payment Methods Accepted:
Do you think it would be beneficial for your company to accept cryptocurrencies? What about currencies that are used all around the world? How many different types of credit and debit cards do you want your customers to use to pay for their purchases at your store? Do most of your clients use electronic checks as a method of payment? What about gift cards and certificates? If your company operates based on subscriptions, having reliable recurring billing capabilities is going to be very crucial to you.
Finding out which kinds of payments are required can help you choose the payment gateway that is most suitable for your website.
3. Technical Capabilities for Integrations
Certain web platforms interface with certain payment gateways in a more frictionless manner than others. The vast majority of online merchants whose preferred platform is WordPress, for example, use WooCommerce as the foundation for their online shop. For the card processors that are conducting the transactions on your cards, WooCommerce enables an open source to be used. This gives you the ability to compete for the best prices on your online purchases by bidding with several merchants. It’s possible that your company already makes use of accounting software that may be easily integrated with a certain payment gateway.
4. User Experience
The majority of clients these days choose to use mobile applications rather than desktop software. Therefore, it is important to choose the e-commerce payment gateway that performs admirably across both the mobile and the online interfaces.
5. Accepted Throughout The World:
While countries capitalize on the benefits of the global market, you should make sure that the payment gateway you use is compatible with businesses in other countries. Your customers might come from any part of the world. Therefore, you ought to make universal payments possible.
The fiscal repercussions of your decision should be given almost equal weight to its technical implications. Before making a final choice, it is important to investigate all the potential routes (multiple gateways and varied service plans provided by a single provider), as this will help you choose the best option.
Check to see that there aren’t any hidden costs or limits to the plan that might require you to spend more than you intended. Commission or transaction fees are often charged by most online payment gateways. In addition to this, there is a possibility that some may want a set-up charge besides a monthly or yearly membership price.
If you are familiar with the requirements of your company, selecting the payment gateway and putting it into action won’t be nearly as challenging or expensive as you would think. You can have an instant and excellent influence on your client’s knowledge, just as you can have an immediate and positive effect on your revenue and productivity if you do it properly. Before deciding on the best payment gateway, all you need to do is do thorough research and consider the factors that have already been covered.