What is the meaning of a payment gateway?
A payment gateway is basically a software mechanism that initiates payment transactions from consumer to merchant bank account. Its main function is to ensure payment, check the success and failure of the overall transaction, and let both sides inform the business process. In e-Commerce, website customer inserts their sensitive data like credit card number and financial data, including bank account details, so it is imperative to be concerned about data security. A trusted and authentic payment gateway is necessary for confirmed data safety without interrupting payment promptness.
The general features of a good payment gateway partner are:
- Check payment details with detailed encryption
- Code authentication of customer account
- Should provide transaction confirmation to both ends
- Fund transfer to consumer account with no to minimum delay
What to consider when selecting a payment gateway for an eCommerce website?
Choosing the right payment gateway is crucial for your business because a wrong payment gateway may hamper your business model, and you will finally end up losing customers and money. It is a real story of choosing the wrong payment gateway for an eCommerce business.
Consider the following important factors while choosing the payment gateway for your business.
First, you have to check the budget while selecting a payment gateway. The cost of the payment gateway comes in three forms, including a set-up fee, transaction fee, and monthly free. To make your option the most cost-effective, you need to consider both the volume and value of each transaction. In most cases, the average transaction rate is 2.9%+30C. It may change if the transaction rate is high.
So if your e-commerce business involves primary high-value transactions, then please check and go for the payment that offers services on a monthly fee basis with a low transaction fee.
Types of cards can be allowed:
Very commonly used cards are credit cards, debit cards, Visa, Amex, and Mastercard. Most of the payment gateway cards accept all of them. However, if your customer wants to pay with another card, please ensure payment gateway support before accepting. The payment.
When you accept online payment, your customers need to enter all their crucial financial information, such as card number and CVV. As an eCommerce business owner, your foremost responsibility is protecting and handling, and maintaining this information safely. Thus we would suggest you to choose a payment gateway that covers the highest data security. The payment gateway should be PCI-DSS compliant that should be connected with screening technology for safe financial transactions.
International Currency Support:
E-commerce business generally takes place internationally. So you have to ensure that your payment gateway supports internationally in different currencies from different countries. This is a very important part of the e-commerce business because customers can come from anywhere in the online business. Additionally, you also need to check for fees associated with foreign currency transactions.
Mobile payment support option:
Now, UPI payment is one of the easy transactional procedures. Almost every customer pays through UPI and Paytm, So it is essential to choose a gateway that supports UPI payment mode through a mobile device. Payment flexibility makes your business grow faster.
E-commerce business means there is no specific time for buying and selling. Customers can buy, and you can sell round the clock. So payment-associated issues may arise anytime, requiring active customer support from payment gateway providers.
Your payment gateway provider should be available while dealing with payment queries raised by the customer. Simply put, the turnaround time should be less. It ensures a satisfying user experience in your e-commerce business.
Able to integrate with another system:
It would simply say the ease of integration that means either you can integrate by yourself or take the help of a professional developer for foolproof integration.
Payment gateway documentation must be available online easily. Mobile SDKs are also an important part of system integration with advanced plugin support. If the provider gives all this support, then it would be the best option to select.
Again, it is important to consider that if your payment gateway can link with the invoicing process or software account, online payment takes place very easily. The associate invoice will update smoothly in the relevant bookkeeping system. This feature can save a lot of time and manual effort because the owner or employee doesn’t need to keep the record. Furthermore, manual update is time-consuming and error-prone.
Must be aware of the transactional limit
You may also know that the payment gateway can set an upper limit to a transactional amount that can be processed in a specific month. For small businesses, the limitation may not be a problem, but for big e-commerce, it can be a hurdle if you choose a gateway without knowing the upper transactional limit. So, suppose you have a high to mid-range business with a significant number of transactions or your business deals with the high-value product. In that case, it is obvious to check the upper limit transaction of the payment gateway.
We have discussed the elements that need to be considered before selecting a payment gateway for an e-commerce business. The web development company also considers all these technicalities while making an e-commerce website.