The digital revolution has made it easy for consumers to shop online through multiple eCommerce websites using several online payment systems. But choosing the right payment gateway is a hassle many decision-makers face. This article shares 4 tips to identify the right payment gateway provider for your business.
Tips for Choosing the Right Payment Gateway
The online monetary transactions are growing rapidly with mass acceptance of people to carry out their shopping and banking activities. PayPal, one of the leading global payment provider reported $315.3 million in payments per day back in 2013, whereas today’s eCommerce transactions are more than $1200 billion. The main credit to boost such transactions goes to the consistent working model of a payment gateway that comply with PCI Data Security Standards through secure web and mobile application development. Therefore, it is necessary for decision-makers to invest some logical thoughts when it comes to choosing the right integrated payment gateway.
Not only this but outsourcing to the best application development company can solve the problem by integrating payment gateways to enterprise mobile apps. Here are the four things decision makers should assess while choosing the right payment gateway.
Your payment gateway must be PCI compliant, because complying with such standards is responsibility of merchant and the service provider. The method of capturing credit card information is very vital for selecting the payment gateway provider as it involves choosing the data from the iframe, hosted, or API.
Classic payment gateway is suited for enterprises operating with the high amount of daily online transactions. But, there are plenty of difficulties in deploying a Classic Gateway, like high time to set up, low availability of right technical resources and integration flexibility with APIs, and merchant account. The biggest advantages of the Classic Gateway is low per-transaction fee compared to the modern ones. Some popular Classic Gateway are Authorize.Net, WorldPay, and 2Checkout.
Whereas Modern Payment Gateway is comparatively easy to set up and does not require a merchant account. But the per-transaction rates are relatively higher. The only disadvantage of Modern Payment Gateway is redirecting customers to the payment site which can hamper the conversion ratios. Some popular examples of Modern gateway includes PayPal and Stripe.
The best way to assess the service provider is by clear and simple pricing plan. Transparency throughout the business deal is very important, helping you identify expensive payment gateways and switching to the other service provider. There are a few vendors who also give the services of data portability.
PayPal is a great example of Hosted Payment Gateways which redirects the customer to its platform and completes the digital transaction. One of the best rewards of the hosted payment gateway comes in the form of leveraging responsibility as the offsite provider is solely responsible for the PCI compliance and data security. On the downside, offsite payment processors are not trusted in some countries of the world, making it difficult to gauge the user’s perception of how they perceive a hosted gateway. Moreover, diverting the users to another website is not a good idea as it leads to lower conversions.
Integrated Gateway connects your eCommerce site with the gateway’s pre-delivered API. With this approach, the customer never goes off-site for the payment purpose, delivering a smooth and seamless buying experience to customers. But the integrated gateway has its limitation in the form of the integration ability for particular gateways. Custom programming and integration services are required for smoothly incorporating integrated gateways in your eCommerce store.
Many business owners are using the above mentioned tips to select the suitable payment gateway for their online stores. Rishabh Software provides custom app development and payment gateway integration services to SMBs, helping them match the regulatory compliance and achieve ease of doing business. Read more about how you can integrate PayPal in iOS and Android.