In this modern age, fintech tools like payment gateways allow merchants to optimize their transaction process so that clients can easily pay for products and services. You can set up a sales funnel and market your products remotely with a few steps. Also, suppose you’ve got a standard shop or showroom. In that case, you can save your clients the stress of having to approach you physically before the transaction can be completed.
However, this process usually has a setback when a merchant chooses the wrong gateway. Most trusted review blogs often feature the best gateways when posting on the subject, but that doesn’t necessarily mean all gateways are compatible with all merchants.
Choosing gateways that are just right for your business and brand can sometimes be confusing. First, you have to make sure they meet minimum security and licensing criteria. Also, you need to check out the best platforms with the integrations and features you need to optimize your sales process.
To ease off some of the workload, we’ve come up with some minimal requirements or features you can check for any payment gateway to determine its suitability for your business. Think of it more like a checklist; if the platform you’re looking at can check out more than half, it’s probably a good choice to work with.
Factors to consider on choosing the right payment gateway
Different factors may affect a customer’s experience that hinders them from completing the final purchase.
Here are just some of them to consider:
Cost and fees
Most companies have a competitive charging fee and the cost of integrating it. The total cost involved in adding a payment gateway should be noted closely. Though if companies are rendering competitive fees, it might work well for your business only if the transaction value isn’t that high.
However, if the fees are also high, it can greatly impact your business and customers. Considering you have high-value transactions, a monthly fee would just fit in for it. Be on the lookout for payment gateway companies that offer different yearly fees.
Type of card allowed
Some payment gateway companies allow certain types of cards. Some examples of common cards include Visa or MasterCards. Many merchants opt for other kinds of cards such as verve or gift cards. It’s advisable to go for cards that are convenient for your clients.
When choosing the right payment gateway platform to be integrated, add these cards.
Different currency support
Multiple currency support can give your customers various options to make payments using other currencies. You want to give your business some room to grow; you want to include some universal currencies to make sure no demographic is left out.
Before supporting different currencies, you should calculate the fees associated with converting those currencies to your local currency. It is important because it may affect your business and put you on the losing end.
Holding time
Unforeseen circumstances might happen while paying for products online. A refund might be required to resolve the issue. Repayments won’t go through instantly. That is why you need to consider the right payment gateway that supports refunds and takes a few days to process.
The varying periods include 1-7 working days. Compare and see which is effective in solving refunding issues. The same goes for when money comes into your account; your finance should be your top priority as you take profits and buy other goods. The waiting days should be thoroughly considered.
Recurring bills
This will only be needed if you run a business that relates to or is a subscription-based business. Not all payment gateway can handle a recurring bill.
The right payment gateway should be able to handle all the activities going on and also be able to save customer details for future transactions.
Hosted and Non-hosted Integrations
Hosted and non-hosted integrations have their advantages and disadvantages. Still, first, you need to know which might fit in perfectly for your business.
Here are some pros and cons for hosted and non hosted integrations:
Hosted Integrations
Hosted integrations are quite stressful for customers. They usually redirect customers to another site to complete the purchase. Aside from the fact that this can cause customers to lose interest in the purchase, another disadvantage here is the possibility of network glitches. The customer might get debited after going through the stress of redirecting to pay for it. Tracing the error might be time-consuming and stressful.
One advantage of hosted integrations is that it saves you the bother of not storing your customer information on the site. Hosted integration can also protect your customers against potential cyber-attacks.
Non-hosted integrations
No one wants to leave their customers having an awful and strenuous experience when having to pay for goods and services.
One benefit of non-hosted integration is that it allows you to integrate it on your website. Additionally, it helps keep your customers on the site longer. They can easily pay for goods while surfing for other goods that may also interest them.
Non-hosted integrations have their disadvantages. They open up your customers to cyber-attacks. Things might get messy, particularly if your customers’ information is stored on the website.
Conclusion
Incorporating the right payment gateway into your online store is key to improving your business. The speed and reliability of transactions and service providers will determine what your potential customers think of your business.