Key points to consider while choosing a payment gateway to meet your online business needs in 2021.
The number of e-commerce businesses all across the globe is rapidly increasing. Online stores and e-commerce websites need a good online payment method to collect payments from customers. Various types of payment methods are available and they vary from business to business. It is important to make sure which payment method suits your business. A robust payment gateway is essential to make the transaction seamless and hassle-free for your customers.
Post-pandemic trends in online businesses and payments
When the pandemic hit unexpectedly, it changed the complete structure of many businesses. Lockdown was announced to curb the spread of COVID-19 which in turn made it difficult to run offline businesses. People preferred buying the essentials online and the e-commerce market has become one of the biggest and rarest beneficiaries of the pandemic.
Due to the massive usage of smartphones and the cheaper internet costs, online businesses are in high demand. Sellers started digitizing their traditional businesses and entrepreneurs are also inclined towards setting up online stores and e-commerce websites for their startup businesses.
How to select a payment gateway
An effortless payment gateway system is an important factor to develop a successful online business. The payment gateway acts as a medium between e-commerce websites or mobile applications and banks. It verifies the details and transfers the amount from the customer's bank to the merchant's bank. This calls for the need to select a trustworthy payment solution for the long term. Let us see some of the important factors to consider before choosing a payment gateway for your online business.
When customers are making a payment online, they need to enter their sensitive financial information like card number and CVV. It is your responsibility as a business owner to keep the information safe.
The topmost payment gateways are PCI-DSS compliant. They invest in fraud detection and screening technology to ensure Secured financial transactions. While selecting a payment gateway for your online business, make sure you check all the security measures and PCI-DSS compliance status of the payment gateway.
Onboarding process and integration
When the website for your online business is ready and set to go live, you would not like it if the payment gateway onboarding process takes time. The last thing you want is to wait for months to get on board as a merchant with a payment gateway provider.
Generally, it takes one day or two for you to become a merchant with a reliable payment gateway. The process depends on the complexity of your online business. However, always select a payment gateway with a short onboarding process.
It is advisable to look for a payment gateway that provides customer services 24/7. Your customers will be able to buy from your website or mobile applications around the clock. As a result, payment-related issues may arise at any point in time.
Your payment gateway provider needs to be available at all times and have a minimum turnaround time to solve the payment queries raised by your customers.
Ease of integration
Online payment gateway integration cannot be done by yourself. Usually, various payment gateways provide detailed instructions on integrating. However, it is important to select a payment gateway that does not mess up your website’s UX.
Make sure you select a payment gateway that is easier and beneficial for your customers. Choose a payment gateway that enables customers to select a payment method of their choice.
Another important factor to consider is the pricing of the payment gateway. Most of the businesses deal with MDR (Merchant Discount Rate). It is the transactional rate charged to include different payment modes. But, there are other payment gateway charges involved apart from MDR.
Make sure you look at all kinds of additional charges like payment gateway purchase fee, monthly subscription fee, annual maintenance fee, hidden charges, etc. Compare different payment gateways and select the one which provides maximum value for your money.
Some payment gateways set an upper limit to the transactional amount that can be processed in a month. This will be a hurdle for large businesses and businesses that deal with high-value products. You need to have a clear idea about transaction limits before selecting a payment gateway.
Cross border payments or Multiple Currency support
If you are running an international business or you want to spread your current business beyond national borders, you need to choose a payment gateway that supports payments in multiple currencies.
Cross-border payments mean, the payee is in one country and you or the business owner is in another country. It is important to choose a payment gateway system that allows customers to pay in their currency and allows you to receive money in your currency. A payment gateway that deals with foreign currency exchange is the best option to enable cross-border payments for international online businesses.
New online payment methods
Electronic wallet payment is the upcoming trend and it gives a new shopping experience altogether. Customers need to create an e-wallet account and then link it to their bank account. A wallet can withdraw or deposit the amount from the linked bank account.
The whole procedure of setting up an e-wallet account and making purchases through it is easy and quick. Wallets can store customer information like debit/credit cards and bank accounts. It eliminates the need for re-entering the information every time while making payments and it is considered as an advanced digital payment method.
XanPay is an all-in one payment solution that caters to your business needs, global expansion, and facilitates the best services to your customers.
Digitalization is non-negotiable for all kinds of industries. Online businesses have seen a tremendous increase nowadays and especially after the pandemic. It is crucial for online businesses and e-commerce websites to select a robust payment gateway to make the whole process of purchasing effortless, secure, hassle-free, and quick.