Payment gateways are the backbone of eCommerce. Effective Payment gateways ensure seamless online payments and are a differentiating factor in the merchant’s business. Easy online payment processing is a consideration in the minds of the customer who is keen to avoid any payment hassles to contact their bank or merchants to verify if the payment is successful.
As a merchant, you might be tempted to have the best payment gateway features, but do you need all of them? How do you distinguish between various payment gateways to choose the right one for your business?
- Understanding the business structure and Expected Volumes – Payment flows or volumes is the most critical factor to determine the payment gateway provider. Customers are redirected to a secure, hosted payment page usually. Alternatively, they can enter their information in an embedded iFrame on the website. This step helps developers leverage the less time-consuming aspect and get the payments started.
- Understanding the Various Types of Payment Systems – Online payment processing mechanisms are based on who handles the settlement file – choose from the two types of payment systems available –
Terminal capture:
Here, the responsibility of all recordkeeping and storage lies with the merchant. This aspect entails sending a settlement message with the settlement file of all required transactions for settling. A batch of transactions with consumer details is created. The files are marked in a queue for settlement a few hours after midnight.
This type of settlement gives the merchant more control over the entire process. However, it also requires storage and management of sensitive data. This can become a high maintenance process over time.
Host capture:
Herein, all information for authorization is on storage by the payment gateway. The settlement batch files are available on the processor. Payment transactions selections are at random periods during the day.
The merchant can authorize the transactions without storing the information between the authorization and settlement. This factor makes it easier to implement. The time can vary and can be done at a pre-decided fixed time or multiple times during a day. The choice is in your hands.
- Safety and security – For a customer, the security with seamlessness of the transactions makes the most difference. Merchants sometimes use customized logos and typefaces that can confuse customers and an alert one can refuse to make any transactions if he/she feels something is off. Ensure your security certificates such as PCI-DSS are up-to-date. On the other hand, many instances and complaints of stolen card information, fraudulent transactions and others can ruin the reputation of the merchant.
Choose Wisely for Longevity
With a growing business, security and privacy concerns are legitimate and ensure the volumes and type of processing are in line with the customer awareness and even geographical locations. It has been found that 79% of smartphone users in 2021 have shopped through mobile phones. This number is ever increasing, thus leading you to competition among peers. Finally, the ease of payment is a deciding factor for customers choosing between similar products or services being offered by you and your competition. Thus, this forms part of the entire “shopping experience”.