When you own a small business or an online eCommerce platform, there are a few things that are the most important things that you’d need to consider. Transactions, yes transactions are one the key components to the success of your business. You may have a great idea or product to sell, and even sort out the way it gets delivered. However, when it comes to the payment options, it is vital that you have a process or a system in place. When you are a small business it might not be all that important. But as your business grows and you have orders coming in from many customers, managing your payments, and keeping track of them could be a hassle. Another hassle could be the modes of payments that your customers desire. Sending out your account details or UPI ids to customers may be an easily available option at the moment. However, Payment Gateways are the best alternatives to expand your options for your growing business.
The Payment Gateway Process
Well, a Payment Gateway is a software that is designed to handle the payments between your business and customers. The software is designed to process your transactions through various modes of payment methods. For instance, when a customer decides to pay by their debit card, the Payment Gateway system acts as a mediator between the two accounts. First, it captures and communicates with the customer’s bank to check for the availability of the funds for the purchase. Then, it communicates with the card associations such as Visa or Mastercard for an approval of the funds. Once an approval code is processed the payment gateway finally sends the information to the receiver’s bank to process the sale. Though the transaction process may sound like a lengthy process. All this happens in a few seconds and is made possible because of Payment Gateways.
In simple terms, Payment Gateways are the caretakers of the money used to make purchases. They are the ones responsible for a safe and secure handling of the transaction between the customer and the business. They also ensure that your customers have a wide range of payment methods to choose from to pay for the products. Be it credit cards, debit cards, net-banking facilities, UPI payments, etc. Payment Gateways makes it easy for customers to purchase products on your eCommerce platform.
Make sure customers feel safe and secure
Ensuring that your customers feel safe in sharing their account information for the purchases plays an important role in building trust. With the boom of the eCommerce platforms, customers expect a high standard from the quality of products, secure payments to swift delivery. And since almost all Payment Gateways that integrate into the eCommerce platforms redirect customers to a different system to process the payment, the process might seem dicey. However, Some Payment Gateways have ensured that the redirection process isn’t too obvious. They provide options of having a similar feel of the eCommerce website in terms of colors, typefaces and etc on the system to avoid any distraction. This instills a confidence to customers to make the payment. Another important aspect of making online payments is the security features. Ensuring that your Payment Gateway has a PCI-DSS certification builds credibility and trust with the system.
Consider fees of payment gateway
There are many Payment Gateway service providers who offer payment solutions at different costs. Many times, the costs vary based on factors such as the revenue consistency, the transaction frequency, the number of sales, etc. Conducting extensive research on the features that are offered and understanding all additional or hidden costs like exchange fees for customers paying from a different currency and location are things that you need to keep in mind to make an informed decision.
Some service providers would set-up a subscription-based fee and some base it on the number of transactions. Some charge for the installation or setup and others would do a combination of both, a subscription fee and transaction fee. Some would choose to charge you for high-value transactions or for exceeding the limit of transactions. So, reading through the service agreements and looking for any fishy clauses will help narrow down on choosing the right payment partners for your business.
Multiple Modes of Payment & Compatibility
When choosing a Payment Gateway, it is essential that you explore the features and services that are offered by the payment service providers. Having many options to choose from the different modes of payments is a huge benefit to your customers and the business. Letting your customers know that you accept different types of bank cards, UPI payments, or internet banking facilities to make purchases will surely ease your customer’s efforts for a swift shopping experience. For businesses that cater to a global audience, having an option to pay in different currencies or payment interfaces is certainly going to help move the business forward.
Another important aspect to keep in mind is compatibility. Sometimes, certain payment gateways work better on a computer system than a tablet or a phone. Ensuring that the payment gateway adapts with other devices will enable a smooth payment processing for your customers.
Easy integration with your E–Commerce website
Most payment gateways are designed to work on various eCommerce platforms like Woocommerce, Shopify, Magneto, etc. Ensuring that the two systems are working hand in glove will make it easy for both the business and the customers to process their payments. Choosing a Payment Gateway that will integrate into the online eCommerce platform will ensure a smooth transition from choosing a product to purchasing it online for a hassle-free shopping experience.
Merchant account
A common question that most business owners ask is if they should get a new bank account for the Payment Gateway. The answer to that depends on the service providers, there are a few criteria for setting up an account that already exists. As long as the account satisfies the required conditions of qualifying as a merchant or business account, the adaptation into the payment system is possible. However, some service providers expect that you start afresh on setting up a new account to integrate into the system. Depending on your needs and necessities, you can always find a service provider that will help you set-up your account at your convenience.
Having the discussion about the transaction exchange process, and how the funds are handled or transferred with the service providers will give you a clear picture of choosing the right services. Other aspects like how to deal with chargebacks or refund procedures, etc. are things that you will need to discuss and understand to make an informed decision in choosing the right Payment Gateway.
Recurring Billing & Customer Support
Payment Gateways that offer a recurring billing feature are useful for eCommerce platforms that provide a subscription-based service. Ensuring that a customer can easily navigate to a recurring payment option will enable the customer to purchase the products or services more often than not. Recent technological changes have enabled customers to save their card information on the platform securely for a smooth payment processing. Though the feature may sound terrorizing and risky it is worth exploring this option as it would ease the overall shopping experience for your customers.
Choosing a service provider that provides around the clock support will ensure the safety and security of the payments that are processed. Getting a Payment Gateway that is supported by a dedicated team will keep the downtime of payment services at a minimum, and help maximize the payment processes.