An online payment gateway is a tool or service that allows a merchant to connect the website to the payment processor. It is simply a software application that simplifies the process of the payment transaction. Thus, every online merchant requires an online payment gateway and there is no way around it. A payment gateway acts as a middleman or in-between service that processes information received at the point of checkout and thereby facilitates the payment made to online retailers. The process not only carries out the task of accepting payment but also deals with essentials including encryption of sensitive information, safeguarding the transaction and keeping in tow with the online data security standards. Therefore, the aim of employing an online payment gateway is to authorize the transactions between the merchant and the customers.
Well, a payment gateway is indubitably a winning aspect required for the operations of e-commerce business websites. However, using an external tool must involve evaluation and the features must be closely inspected. The final pick must be made on the basis of the capabilities and needs of the business site. Here are pivotal factors that must drive your decision and will better your understanding.
Importance of online payment gateway
- Enforcement – An online payment gateway undertakes the responsibility of ensuring the payment is securely received and thus, it avoids the possibility of payment frauds.
- Customer-experience – Catering to the preference of customers and meeting the global needs, ensures that they make the purchase with satisfaction. From the different currencies to the varied payment methods, a merchant can rest assured knowing it is being taken off by the payment gateway provider.
- Ease of use – Online payment gateway services do not require elaborate setups and the maintenance requirements are minimal from the merchant’s end. Moreover, most online consumers are familiar with the working of payment gateways, calling for less effort.
Factors that should drive your choice of an online payment gateway
- Security – Security is one of the major factors that one should seek for in an online payment gateway. The software must be reputable and provide your customers with a safe checkout experience. Think of it, your customers aren’t going to punch in sensitive financial data if there are no robust security measures in place.
- Compatibility – The payment gateway must be compatible or should smoothly integrate with the platform that is being employed. The existing structure should not require an abundance of tweaking and the online payment gateway must allow customization to appropriately fit.
- Cost – Using an online payment gateway comes with an associated cost. The provider charges a premium for the processing the payment. Thus, the cost must be noted, and a thorough research must be carried out to get the best deal. Remember, more the features, the higher will be the cost. Also, ensure that no cost is levied on the customers as it can affect sales in the long run.
- Support – To set and manage the gateway efficiently, it is beneficial that a support service is offered. There is a possibility of glitches occurring when using the software and inability to restore the same immediately can cost the business immensely. Thus, a 24/7 support system is admirable.
Popular online payment gateways to pick from
There is a slew of online payment gateways and choice can be a matter of concern. Here are few popular options to look at:
- WePay – WePay is a platform that is engineered to address and handle the requirements of businesses with complex payment requests. The company also enables payment from international customers. Moreover, the well-equipped support center makes for great business partnering.
- Amazon Payments – Amazon Payments is one of the most established online payment gateway platforms and boasts of a million accounts. It renders customers a convenient way to make a purchase through its ability to be customized. The software is compatible across devices and this adds to its advantage.
- PayPal – PayPal is widely acclaimed for the plethora of capabilities that it ropes with it. From the fraud protection, merchant support and more, it has a very high rate of compatibility. No matter what the business type, PayPal is found to offer varied payment solutions.
- Stripe – Stripe is another online payment gateway that features a combination of the best applications. The easy and customizable setup and added extras make it one from the lot of winners. Moreover, it also helps in refining operations for increased growth in business.
To put it in simple terms, a smooth shopping experience makes for great sales. Thus, the right online payment gateway can immensely enhance the user experience and encourage customers to undertake purchase. The right types of payment gateways will be a guiding force in taking your business to new heights. Moreover, whatever the business type, there is one that is most suitable for you.