For any business, it is imperative to choose the best Online Payment Gateway.
eCommerce is the fastest growing industry holding immense potential. There’s a multitude of eCommerce Payment Gateway options.
So, there’s a struggle to choose the platform meeting specific requirements.
Choosing a Payment Gateway Solution is a focal point for an eCommerce website.
A payment gateway is a valuable tool for eCommerce websites which may be online, web, or mobile app. All the websites are customer-centric. So, you have to provide a safe, quick, and Secure Payment Gateway.
Many pathways for payment and fast settlement becomes vital.
It is an integrated solution for POS (point of sale).
Let’s discuss the details of choosing a payment gateway for an eCommerce website.
The Work Module Of Payment Gateways
Payment Gateway is the third-party service.
Understanding the Working of Payment Gateway is vital.
It supports automation of transactions for any Business Niche. It also facilitates the authorized transfer after validating credentials.
A payment gateway handles information sharing between the Payment Portal and Front-End Processor.
Payment Gateway Providers offers easy & fast online transaction between a buyer & seller.
Without a Best Online Payment Gateway, it is not possible to pay for any service or product.
PayPal is an example of a Payment Gateway Companies.
The top mobile app developers and leading mobile application development companies recommend it.
In this section, we will analyze How Payment Gateway Works.
So, let’s start the show, right now.!
Payment Gateway Functions
Payment Gateway functions in various processes like
- Encryption: During this process, the web browser encrypts the data. Payment Gateway transfers the transaction data to the payment processor. It’s related to the dealer’s bank.
- Authorization: Online Payment Systems makes an authorization request to the card association. Upon which the credit/debit card issuing bank accepts/decline the offer.
- Order Filling: Authorization of the merchant and customer gets forwarded to the gateway. After that, the Mobile Payment gateway transmits it to the website.
- Verification of the Delivery address.
- Velocity pattern analysis
- Computer fingerprinting technology
- AVS checks
- Identity morphing detection
Merchant Account And Alternatives
What Is a Merchant Account?
Merchant Account is a bank account that lets businesses accept payments.
There exists an agreement. It’s between a retailer, a merchant bank, and payment processor.
All this contributes to card transaction settlement.
There is a private merchant account for online shopping.
PayPal transactions do not involve a merchant bank. It provides fast and secure transactions.
One should avoid Mobile Payment System demanding for repeated sign-up.
The choice of the platform depends on feedbacks, demos, and technical advice.
Key Components Involved In An Online Transaction
Online payment transaction involves the participation of three parties.
The owner or retailer who receives payment. The second party is the buyer who makes the payment.
The third party comprises of the payment gateways.
It connects the other two parties to complete the transaction.
Let’s discuss them in detail.
- The Retailer: One needs to agree with the merchant account. After that, he/can perform any transactions.
Merchant bank account makes the payment on vendor’s behalf. An internet merchant is available for online transactions.
But, with the payment gateway, there is no need of having a merchant account.
- Customer: Payment Provider needs a credit/debit card to pay for any service or product. But only after permission of card issuing banks, a transaction is valid.
- Technology: In-Between technology aids the transaction between the retailer and the customer.
- Payment Gateway links the card of the customer with the shopping cart.
- The Online Payment Processing helps in processing, billing statements, and working with the bank. It helps in simplifying things.
Web App Developers could assist in choosing the payment gateway.
How Are Payment Transactions Processed?
The merchant needs to look through the process of the transaction to know how the money flows.
The two stages of the Mobile Payment Processing are ‘Authorization’ and ‘Settlement.’
The transaction process occurs in the following steps:
- The customer initiates the payment process. For that purpose, he/she buy the product through debit card/credit card.
- The payment gateway encrypts the informational data. It’s for keeping the data private before the payment process.
- The payment process makes an authorization request. It asks the card issuing bank for permission. This request is either declined or accepted.
- After the approval, the transaction gets completed. The notification gets sent to both customers and merchants of the transaction.
This process takes place within 1-2 seconds.
It is the process where the merchant gets paid.
- The money received by the merchant bank from the customer. After that, it gets forwarded into the merchant’s account.
- The funds become available. The merchant bank may even keep a part of your payment in case of a refund.
This process may take a few days.
Payment Processing Fees & Policies
So far, we have analyzed the process of money transfer.
Now, let’s see the cost of this process.
You have to know about Payment Processing fees. Mobile Payment Apps also charge some processing fees.
Everyone holds some share in the transaction. It can be card issuing bank, merchant bank, or credit card association.
Followings are the fee structure of the various shareholders of the process:
- Interchange: There is a pre-negotiated percentage of the card issuing bank. The fee depends on various on many factors like the type of industry, amount, and the card used.
- Assessment: It’s pre-negotiated charge by the credit card association.
- Markup: It is the fee charged by the merchant bank. This fee depends on similar factors as that of interchange, like the type of industry and sale amount.
- Processing: These are a fixed rate fee charged by the payment processor. It’s for every transaction made. The charges may rise for canceling and monthly usages.
Other than this, there are three different fee structures. In these plans, the individual fee gets bundled to remove the confusion.
Processors structure for fee plan:
- Flat Rate Pricing: A fixed percentage gets paid for the transaction. There is no association with volume.
For example, you pay $3.20 for $100 sale according to this plan.
- Tiered Plan: You can classify the exchange into three tiers. Non-qualified, mid-qualified, and qualified. This plan can be expensive for the merchant depending on fee classification.
- Interchange plus pricing: The plan to charge a fixed fee for merchant service.
For example, 2%+ $0.10 for 1.8% interchange. $3.90 for $100 sale.
Payment Gateways can charge monthly, yearly, or per transaction fee. It takes basis on the transaction volume.
Comparing The Payment Gateways: Types Of Payment Gateways
There are two types of Payment Gateways
- Hosted Payment Gateway
- Integrated Payment Gateway
Let’s discuss them in detail,
Hosted Payment Gateway
It redirects the customers to the processing platform for the transaction.
PayPal and PayU are the best examples of hosted payment gateways.
- They obey the Data Privacy Laws for the transaction on their respective platforms.
- These are easy setups.
- With buyer protection, programs they build trust.
- They are recognizable, making it easy for the start-ups to use them.
- There may be doubts in the customer’s mind after redirection
- Redirection takes time hence reducing conversion rates.
Integrated Payment Gateways
In this type of payment gateways, there is a use of API for transactions.
- It is a quick transaction as it takes place on the merchant’s website.
- No doubts arise in the minds of the customers.
- This setup needs technical expertise as they are challenging to set up.
- The merchant handles the Data Privacy Laws.
- For setting this, it takes time for the merchant.
Top Payment Gateways To Consider
As payment getaways transfer funds, they should be safe and secure.
Thus, top application development companies suggest these trending payment gateways:
- Amazon payments
- Orange pay
- Mobile Pay
You can also search on Google about Top 10 Payment Gateways.
It can seal the deal for you, without a doubt.
How To Choose a Payment Gateway For Your eCommerce Store?
There’s a myriad of Payment Gateway options available in the market.
From that, finding out the best payment method becomes a challenge.
Find more statistics at Statista
PayPal, PayU Money may be the Best Payment Gateway.
But, they have a high fee. Some other apps, such as Citrus charge less and have amazing features.
There are many factors that you should consider before choosing the appropriate platform.
Few of them are as listed below:
Fee Consideration: You should review the setup fees and transaction charges before deciding. You would not like to pay higher costs for a start-up plan.
You should go for the gateway that doesn’t charge a setup fee. Whereas, well-established businesses can choose the one with the setup fee.
Automatic Billing Report: One should opt automatic billing supported gateways. Consider if there is a need or not.
Review Purchasing Funnel: One needs to review that. If the process is taking too long and involves many steps. If it’s demanding too much info to build a payment gateway business.
Always consider viewing the demo. You can style the payment gateways according to your needs as they are quite flexible.
Do not Stick: As per your preferences change, you should not keep on clinging to the payment gateway. In the beginning, consider to receive payment and improvise later.
CMS Supporting: Your payment gateway should support CMS. The reason is, all eCommerce is CMS with off the shelf platform.
Serving Overseas Customer: Dealing with foreign customers is a challenge. Make sure the payment gateway authorizes international cards too.
Many Options: It is crucial to provide various payment options. It helps you to build customer trust. Also, consider preferring a recognized platform like PayPal.
Customer Support: Payment Gateways should provide customer support unless you have technical skills.
Consider Cash On Delivery: COD is a must for gaining success in a country like India.
Customers would start paying online after a couple of transactions.
The reputation of the Payment Gateway: Choosing a reputed & recognizable payment gateway is vital. It increases your chance of gaining customer faith.
Data Portability: Sometimes, there’s a change in the payment gateway. In that scenario, you should take responsibility for the customer’s data.
Security: Payment Gateway should be secure for making online transactions. Only then, the customer could grow your sales.
These are considerations you need to keep in mind.
It will help you to choose the best-suited Mobile Payment Gateway.
The Best Payment Gateway Depends On Your Business Needs
The best Global Payment Gateway is the one which accomplishes your business needs.
For example, for your startup, a significant need is to receive the payment.
So, you can choose a cost-effective and setup free platform.
The platform selection varies on various fronts,
- If you are not a famous business or brand
- If you have foreign customers. The currency and their Credit Card Processing.
- If the transaction process involves too many steps or more time.
- If the gateway requires extra information from the customer.
As a merchant, you need to learn that the best is what suits you the best.
For a new business, you need a quick and secure method for making payments.
You also need to look for the fee charges of the transaction.
The Web Application Development Company provide Payment Gateway Integration at a reasonable rate.
Selecting a Payment Gateway Services is a crucial step for the success of an eCommerce website.
With an army of choices available, it may be exhausting and labor-intensive. But it is worth the hustle.
One must seek professional help.
The Payment Gateway for Website chosen should run seamlessly. It is the final and crucial step in producing revenue.
A mobile app development company knows the best solutions for you. They have vast knowledge and experience. They can give you the best Mobile Payment Solutions.
At last, the choice lies with you. Make a choice you won’t regret.
Otherwise, you may have to pay for dealing with customers trust and in monetary terms.
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