By Sam Anderson from WritingSimon.com
The explosive growth of technology has drastically altered the payment landscape. It is making it easier than ever for customers to access a variety of efficient and seamless payment options. To provide customers with a personalized experience, it is critical to select the right payment gateway for your business.
But finding the right payment gateway can be overwhelming with so many choices. You may find yourself unsure of which one to select. That’s why we’re here to help. With this article, you’ll discover the necessary steps to make an informed decision about the right payment gateway that is perfect for your business.
What is a Payment Gateway?
A payment gateway is a service that allows businesses to accept online payments. Payment gateways encrypt sensitive information, such as credit card numbers, to ensure that it is not intercepted by third parties.
Gateways also authenticate the customer’s identity and verify that the customer has the funds available to complete the transaction. Some common features to look for when choosing a payment gateway include support for multiple currencies, recurring billing, and fraud protection.
11 factors to consider before choosing a payment gateway
Cost incurred using payment gateway
The cost of a payment gateway is one of the most important aspects to consider when selecting the right one. The exact amount of the cost varies depending on which type of payment gateway you choose. And how you decide to use it: whether you prefer pay-as-you-go or subscription services.
Additionally, there are incidental costs associated with every option. Transaction fees, processing fees, subscriptions and storage costs to name a few. Doing some research ahead of time can help you find an option that is within your budget and also provides the service and functions that your business needs. The most important thing you need to keep in mind while choosing a payment gateway is finding the option that meets your needs with pricing that works for your budget.
Tax collection
When considering a payment gateway for your business, it’s important to make sure that it includes taxes for transactions. There are a variety of taxes that need to be taken into consideration and can vary based on the product, country, and state of sale.
By using a payment gateway with built-in tax calculation and collection capabilities, you can easily ensure that you are compliant with all applicable rules and regulations. Having the ability to calculate, collect, and remit sales tax, VAT, and GST with one line of code or click of a button helps to streamline the process.
This also gives you access to reports which allow you to not only properly file returns but also keep track of any refunds or credits associated with each transaction. Investing in a payment gateway that includes taxes for transactions is essential for businesses operating online as it helps to ensure compliance. Doing so can avoid penalties and interest associated with uncollected taxes as well as provide valuable insights into how much revenue is being generated from each item sold in different locations.
Type of cards accepted
It is important to know what types of cards are accepted when selecting a payment gateway. The most common forms of credit card payments include Visa, Mastercard, American Express, Discover Card and JCB Cards.
Depending on the payment gateway, other types of cards such as debit cards may also be accepted. Before making a decision it is prudent to compare the different payment gateways available and make sure that their card acceptance includes the different types of cards you expect for your customers.
Holding time on payments
Holding time on cards is an element that deserves your attention. This allows for a standard of security between merchant and customer. This is to allow for the handling of refunds and charge-backs, which ensures that consumers can divert or correct their payments as needed.
Choosing a payment gateway that offers the best holding time according to your business needs will provide peace of mind while still allowing you the flexibility you require.
Multiple currency support
Whether you’re selling services or products, it pays to handle payments in different currencies. After all, customers everywhere would appreciate being able to view prices in their own currency and pay accordingly.
When choosing the right payment gateway for your business, it’s important to make sure that it supports multiple currencies for a stress-free experience for both you and your customers. Look for a gateway that has competitive currency conversion rates and allows you to accept major credit cards from a variety of countries so you can handle payments wherever you’re located and expand your customer base.
With reliable multiple-currency support, your payment gateway should handle international payments with ease.
Recurring billing
Recurring billing is an essential feature for subscription-based businesses, allowing them to charge their customers for subscription services on a scheduled basis.
It’s important for businesses offering subscription models to think about which payment gateway is right for them, as no two payment gateways will offer the same features. Depending on their needs and budget, finding a payment gateway that offers awesome customer service and reliable support can be a game changer when it comes to creating a seamless subscription-billing experience.
Choosing the right payment gateway can help subscription-based businesses deliver a more efficient and dependable payment process. Ultimately resulting in increased customer loyalty and satisfaction.
Hosted vs. non-hosted gateways
When it comes to choosing a payment gateway, an important element to consider is the distinction between hosted and non-hosted gateways. Hosted payment gateways provide advantages such as convenience and security, since businesses are relieved from collecting, storing and securing sensitive data.
On the other hand, non-hosted payment gateways require more setup but offer more control over the process. Non-hosted gateways provide customers with a more seamless checkout experience. Information is entered on the merchant’s website rather than being redirected away to another service provider.
Additionally, non-hosted payment gateways offer merchants greater flexibility when it comes to customizing their checkout page’s look and feel. With these advantages and disadvantages in mind, businesses can decide which type of payment gateway works best for them.
Security on all types of devices
Security should be one of the main considerations when choosing a payment gateway. Today, mobile devices such as phones and tablets are used more than ever before for online transactions. So selecting a payment gateway that incorporates advanced mobile security technology is essential for keeping your customers’ data safe.
The best payment gateways offer features like two-step authentication and encryption protocols, which help to protect personal information from unauthorized access or tampering. Additionally, many gateways ensure resilient measures. Like data backup, fraud prevention, and risk management to further secure sensitive information and protect both the customer and merchant.
When evaluating payment gateways, make sure they meet all of your security requirements to safeguard your customers’ financial data while offering an effortless checkout experience.
Limits on transaction amount
When you’re selecting a payment gateway, it’s important to make sure that it has limits that are right for your business. You want to be sure to find out if the gateway has any limit on the transaction amount that you can process per month.
If there is a limit and your transactions exceed it, this could limit the growth of your business. When choosing a payment gateway, make sure you know what limits may be in place so that your business has room to grow and can make the most out of its ability to accept payments.
24×7 Customer Support
Customers rely on 24×7 customer support when handling their online payments. Several payment gateway services offer comprehensive customer service to many business owners. But there are still some that limit their support to tickets or emails.
Therefore, when choosing the right payment gateway for your business, it’s important to ensure that their customer service is truly available 24×7 and they can provide resolution faster than other services to meet your needs. Great 24×7 customer service is just one of the aspects you should consider in selecting the right payment gateway for your business.
Integration with other systems
Finally, it’s worth considering if your payment gateway can connect with your other systems. By doing this, you can ensure that data is being passed along automatically and reducing bottlenecks in your workflow. Moreover, as many payment gateways are cloud-based, they are often well-positioned to bridge with existing retail, accounting or CRM systems already in place meaning that fewer adjustments need to be made during the integration process.
Some of the top Payment Gateways for Your Business
Top payment gateways out there include:
Each gateway offers its own unique blend of features and services that may match up with your business’s particular needs. They all offer secure payment processing and are well-known options. However, you’ll want to evaluate each one on its own merits in order to make the right decision for your company.
Conclusion
When selecting a payment gateway for your business, there are many other things to keep in mind beyond transaction fees and discounts. Rates for rewards and international cards may not be the same as standard card rates. So it is important to check what rates your gateway can provide. Additionally, some payment gateways offer additional features such as customer profile data storage and customized checkout processes. That can make it quite simple and efficient to process payments. Take the time to assess which ones are the best fit for your business needs.