When you’re a business owner, your payment gateway is an integral part of your company. It’s the backbone of most e-commerce stores. As such, it’s important to find the right one for your business and your needs.
What Is A Payment Gateway?
A payment gateway acts as a middleman between you and your consumers when they purchase online. In order for them to submit their payment information and complete a purchase, they must have this permission. A payment gateway that is capable of processing online transactions is required if you wish to start an e-commerce shop.
The Different Types Of Payment Gateways
There are three main types of payment gateways:
- Hosted Payment Gateway – A hosted payment gateway is a payment system that you can use for your business without having to invest in hardware and software. The host provides the hardware and software, so all you need to provide is a computer with an internet connection, as well as web hosting. The primary benefit of these gateways is that they’re cost-effective, often costing less than $100 per month.
- Standalone Payment Gateway – This type of payment gateway is typically used by businesses that sell products or services over email only. It’s not ideal for e-commerce companies with an expansive product catalog because it doesn’t allow customers to pay when they check out of their shopping cart, which can result in lost revenue.
- SaaS Payment Gateway – With a SaaS (software as a service) payment gateway, you don’t need to purchase or install any software on your business’s computers. All you have to do is sign up for the service and input your credit card information into the system–the service provider takes care of everything else. These gateways are typically low-cost and easy to set up, which makes them great for brands just starting in e-commerce.
Things To Consider When Choosing Your Gateway
Numerous aspects must be taken into consideration when selecting the most appropriate payment gateway for your company’s needs. First and foremost, you must examine whether or not your consumers will be paying using credit cards or other forms of electronic payment.
A separate checkout page or an integrated shopping cart are additional something to think about when designing your website. Select a service provider that offers a diverse range of payment gateways and is compatible with a number of credit cards and currencies, among other things.
Next, you should think about the features of your chosen service provider like high risk Merchant Account. Perhaps you require additional features, like fraud protection or chargebacks? Do you want to offer discounts for large orders? If so, choose a service provider that includes these sorts of things in their services.
Finally, think about your budget! Some providers may be too expensive for your business’s needs. Other companies may have packages that offer more than what you need but are still within your budget. How much is this integration costing you in the long run? The cost-benefit analysis needs to factor into the decision as well.
