For E-commerce businesses payment gateways are crucial as they want their customers to experience hazzle free, easy, and convenient payment. Every E-commerce platform in the world has a standard feature for payment. Business can use more powerful payment service by integrating with a payment processor.
Online payments are quick and easy. They let you purchase services and products. If you’re a seller, you can sell a product with a decent internet to a customer in any part of the world. Your customer doesn’t even need a computer to use your service; a smartphone would suffice.
As the pandemic emerged, it posed a threat to economies’ and businesses. The trend of online payments suddenly peaked. Digital commerce and Mobile POS Payment is gaining acceptance around the world. According to stats by emarketer, 1.31 billion people will supposedly use a mobile payment system for cashless transactions by 2023.
But what is an E-commerce payment gateway, exactly? Is it safe to use a payment gateway to conduct business? Is it cost-effective for your company to integrate a payment gateway? Let’s have a look.
What is E-commerce payment gateway?
A payment gateway is an online payment processing software that enables businesses to accept credit cards and electronic cheques. Payment gateways, in other terms, are positioned between e-commerce platforms and customers.
Factors that will help You Select the Right E-commerce Payment Gateway
- Find the Best Suitable Option To Beef up Your Digital Security:
Digital payments infrastructure, riding on open banking stack like UPI, has allowed fintech companies to revolutionize and generate new payments use cases for merchandizing. The security of your ecommerce payment gateways can help you fend off cyber assaults in real time by acting as a buffer between the buyer and the merchant.
Example – PayPal’s fraud protection system is included at no extra cost. This adds to your confidence that your payment gateway is secure — or at the very least capable of dealing with threats as they arise.
2. Make sure That there will be Ease of Integration:
Brands frequently use multiple payment vendors based on their geographic location, customer preferences. There are a variety of digital commerce payment vendors each with different strengths and weaknesses whose services can be used for specific purposes.
Make sure that the payment gateway entails the least amount of technical effort for a developer. It makes transaction straightforward, easy, and seamless. It has quick and seamless integration APIs, well-defined internal procedures, and extensive integration pack that enable you to start your online business quickly.
Check if it also helps you to limit payment bounces by allowing customers to pay without leaving your website.
3. Check the Pricing:
After availing benefits of good E-commerce payment gateways and using its security features, businesses will be able to provide the security and opportunity that both customers and businesses require as they seek easier methods to pay and trade.
Here is a list of some of the most popular payment gateways in 2022 with its pricing:
| Name | Pricing | |||||
| Authorize.Net | $25 per month | |||||
| Stripe | (pay as you go payment processing platform) | |||||
| Standard | Included at no additional cost. | |||||
| Express | $2 per monthly active account and 0.25% plus 25 cents per payout sent | |||||
| Custom | $2 per monthly active account and 0.25% plus 25 cents per payout sent | |||||
| PayPal | $30 per month | |||||
| Square
|
|
Free | Professional | Performance | Premium | |
| Monthly fee | $0 | $12 | $26 | $72 | ||
| Processing fee | 2.9% + 30 cents | 2.9% + 30 cents | 2.9% + 30 cents | 2.6% + 30 cents | ||
| Braintree | 2.59% + $0.49 per transaction (cards and digital wallets) | |||||
| WePay | 2.9% plus $0.30 per transaction (for card transactions) | |||||
| Verifone | 3.5% + $0.35 per transaction (Processing fees) | |||||
4. Know about Data Portability
Assume you go to an online business. You entered your payment card information on your previous visit. The company has improved its transaction procedure or expanded to new countries since your last visit. As a result of the modifications, the company had to replace its E-commerce payment gateways. This is where the concept of data portability comes into play.
As a client, you will be unaware of any changes and will not be required to re-enter your information. Data portability refers to a company’s capacity to move consumer data from one gateway to another without interruption.
5. Count on How Can You Provide a Good User Experience?
Admit it or not, the payment gateway you choose, as well as how that gateway and its options are presented on your store, can have a significant impact on your customers’ experience.
This necessitates that store owners offer a fantastic experience from start to finish, beginning with the homepage. Things that distract from this experience, such as a clumsy search or confusing menus, put you at danger of losing customers.
Consider whether the payment gateway you’ve chosen is hosted or integrated through an API. When you use a hosted gateway, you’re taking clients away from your store to give payment information, which might lead to a bad experience.
Consider the following scenario: you enter into a lovely, well-stocked store, select the items you want, and proceed to the checkout counter. And then you’re informed you have to pay next door (perhaps at a store you’ve never visited).
If this occurred to you in real life, you’d be disappointed, perplexed, and even concerned that you were being duped. It’s easy to understand why online buyers could feel the same way if they’re sent to a payment platform they’ve never used before on an entirely other website!
Why do we need an E-commerce Payment Gateway?
Why do you need a payment gateway if it’s only a middleman, you might ask? Before we answer this question, it’s important to note that online payments are handled as card-not-present transactions. The customer’s card cannot be physically swiped on a POS terminal online, just like you would usually do if you processed the payment in a shop. As a result, you may only depend on the card details provided by the customer on the payment page. But how can you be certain that the card being used by the customer is theirs? The fraud risk is much larger with card-not-present transactions, and this is where a payment gateway comes in handy.
What happens if the payment gateway is removed from the online payment process? Swindlers would have easier access to the card information you process, putting your company at risk. Furthermore, criminals would develop new ways to conduct unauthorized transactions, leaving you even more vulnerable to theft and harming your business.
Your customer’s payment data is guarded by a payment gateway. A payment gateway keeps undesirable threats away from sensitive card data by relaying information from you, the merchant, to the acquirer and the issuing bank using data encryption. A payment gateway protects retailers from expired cards, insufficient cash, cancelled accounts, and exceeding credit limits, in addition to fraud monitoring.
Conclusion
If you run an e-commerce site and are unsure whether you need a payment gateway, the answer is unquestionably yes. This will need to be implemented in order for you to be able to collect payments directly from your consumers. Even if you have a physical store, adding a payment gateway to your website will help you attract more clients and improve sales from people who would otherwise be unable to visit you.
Hire Magento developers who can help you to implement the best E-commerce payment gateways to build merchandizing portal. You can find more about which payment getaway is the best for your E-commerce website.
