A payment gateway, also known as a partner, is software or a website that enables safe and secure online transactions for consumers. These convenient services simplify the process of online shopping by providing effortless payment processing.
With the growth of online business, it is crucial to collaborate with a trustworthy payment processor that ensures the protection of your transactions.
A dependable financial partner must have the capability to:
- Authenticate the purchaser’s payment details.
- Verify that the purchaser has enough funds in their account.
- You are required to transfer the money to the seller right away.
- To ensure the satisfaction of both the purchaser and seller, verify the transaction details.
Popular e-commerce payment solutions include payment gateways like PayPal, Skrill, Stripe, and Braintree. Additionally, major companies such as Amazon and Facebook have developed their own payment processing services.
Varieties of Online Payment Systems
There are three distinct payment gateways that your company can utilize for its transactions.
Gateway based on Server
With a hosted gateway, customers are redirected to an external site where they can provide their payment information. After their payment is processed successfully, they are directed back to your site to complete the purchase and process the order.
Using this method, merchants are not required to be PCI compliant, making it more accessible. Additionally, the retailer does not store any financial details because the entire transaction is handled by the third-party payment partner. As a result, it is more secure to keep sensitive data away from the vendor’s website. An Application Programming Interface is employed to direct the user to the gateway.
This approach is an ideal choice if you operate a small business and prefer not to deal with compliance regulations and security concerns related to sensitive data.
Direct Mail Gateway
With this payment method, customers can make purchases on the retailer’s website without leaving it. The gateway will process the customer’s information and complete the transaction. The browser will function as the data storage device, and as a result, the retailer will not store any customer information. The gateway will obtain the authorization data via High-Performance Payment (HPP) messages, which will be transmitted in the form of a JavaScript Object Notation (JSON) string.
The Application Programming Interface (API) facilitates the integration between the payment processor and the online store. This approach enables the retailer to comply with the Payment Card Industry Data Security Standard (PCI DSS) since no financial details are handled by the retailer.
Alternative to Hosted Gateway
With this arrangement, financial transactions are conducted directly without any intermediaries. The retailer is responsible for processing transactions, storing data, and ensuring its security.
This system provides the retailer with complete control over the payment processing and transaction, creating a smooth experience for the customer. It enhances brand awareness and improves customer satisfaction. Additionally, the payment gateway can be customized extensively to meet the retailer’s requirements.
It is crucial to keep in mind that there may be some potential concerns associated with using this method. Retailers must ensure that they comply with the Payment Card Industry Data Security Standard (PCI DSS) and are responsible for maintaining the software. However, this approach can provide significant advantages for medium and large companies that opt to handle their payment processing in-house.
Factors to Consider When Selecting a Dependable Payment Processor
Choosing a reliable payment partner is imperative for any business. When assessing the different options available, it is essential to keep the following factors in mind to make an informed decision.
Primary Access Point
When selecting a payment provider, it is critical to consider the provider’s location. Is a license required for the supplier to provide their services in the region where they operate? Furthermore, it is necessary to assess how convenient the payment options are for the target audience to access.
It is advisable to verify the payment schedule, exchange rate, and accepted currencies. For corporations with a worldwide client base, it is critical for the payment processor to be capable of currency conversion.
Mode of Exchange
When choosing a payment processor, it is crucial to consider that credit and debit cards are currently the most widely used payment methods among consumers.
It is indispensable for the payment partner to deliver more than just basic services. To ensure optimal customer satisfaction, it is necessary to offer alternative payment methods such as net banking, e-wallets, and vouchers, as well as various payment options for customers to choose from.
Accepting cryptocurrency as a payment method is becoming more and more prevalent among businesses. We suggest that you check with your payment service provider to see if they accept any of the major cryptocurrencies.
Cost-Effectiveness
Assessing the costs involved is critical when choosing a payment processor. Your chosen payment method should be easy to set up and manage at an affordable price. Therefore, when selecting a payment partner, it is necessary to consider factors such as purchase fees, subscription fees, payment processing fees, and service renewal fees.
To avoid incurring late fees, it is recommended to check if your payment processor has a monthly transaction limit.
Encouragement
When choosing a payment processor, it is crucial to take into account factors such as transaction speed and customer satisfaction. It is necessary to consider the customer’s perspective; if they face any difficulties while making a purchase, they are likely to abandon the checkout page. Moreover, the speed of response from customer support to any queries raised should also be considered.
Safety
When choosing a payment processor, security should be your top priority. Make sure that the payment processing and data storage gateway you are using complies with PCI-DSS standards. Additionally, it should be equipped with features such as one-time passwords (OTPs), fraud detection, embeddable checkout, and payment screening.
A trustworthy payment partner should be capable of handling and mitigating any potential risks. They should also be accountable for payment processing, dispute resolution, multi-platform support, and automated payments.
To Summarize
Having dependable payment partners is crucial when running an online business. Collaborating with a reliable payment partner leads to increased customer satisfaction and loyalty, which are critical for the growth and success of any company.
A thorough needs assessment should be conducted by online businesses to determine the most appropriate payment gateway. Employing a dependable payment gateway will ultimately result in growth in customer numbers and sales.
