Are you setting up an ecommerce website?
Choosing a right payment gateway is important for the same. Before knowing the ways to choose a payment gateway you have to know about the payment gateway.
What is payment gateway?
An online transactions engine that authorizes or declines credit cards, debit cards and other online payment alternatives is termed as a payment gateway. In an ecommerce transaction, for selling a product you need a payment gateway for accepting payments from your customers.
Payment gateway enables the online shoppers to make payments without any fear as it keeps their details and payment secure thereby gains their trust and give the comfortable feeling for them to handle money over online. It enables the ecommerce websites to take payments quickly and easily.
Have you not yet decided which payment gateway to choose?
There are certain things you need to consider for choosing a payment gateway for your ecommerce website:-
There are two ways for payment gateways among which one allows the customers to carry out the payment process within your ecommerce site where the details provided will be communicated directly with your secure gateway provider. The other redirects the customers to a different URL which is away from site and enables you to meet the Payment Card Industry Data Security Standard (PCI DSS). Choosing the payment gateway which you think suitable for your business is a better idea.
A merchant account is a special type of bank account that collects card payment details. Getting a combined payment gateway and merchant account from the service provider would be a good for the small merchants whereas large merchants can have their own merchant account to save money. Combined account involves very low setup and monthly fees.
The next thing to be taken into account for choosing a right payment gateway is the fees. In this, a payment gateway without signup fee would be better one mainly for the selling products in large volume. When a gateway has high transaction fees then it is trusted by customers. So, many famous gateways used to have high transactions fees. But if you find it affects your profit then go for low transaction fees.
If you are going to do your ecommerce business globally then it is important to choose payment options according to the countries and currencies. It is essential for you to check the terms and conditions of payment gateways as some of them only allows you to sell physical goods.
Have a short term contract with the service providers as there are chances for you to continue with them even if you are not satisfied with the services when you agree for years contract.
Choose payment gateway by analyzing the payment methods that are preferred by the customers in your target market so that you may not your sales.
Ensure that you provide the customer support while the customers have trouble in making their payments.
Before choosing a payment gateway analyze the pros and cons of the popular gateways and select the one which is suitable for your ecommerce website.