The Best Payment Gateway for Your eCommerce Site

Friday, October 2nd, 2020

In your quest to make sure your customers always have the fastest and most convenient payment processing options, you might be wondering about payment gateways. Do you need one? What are they? And do they really minimize risks to your customers? If you’re looking for answers, the following tips will help you learn more about payment gateway, and how to choose the best one for your eCommerce site.

What is a Payment Gateway?

Essentially, a payment gateway is a merchant service that helps your business process credit card payments for your eCommerce site. Within just seconds, the payment gateway encrypts the information from the user’s browser and your server for safety and privacy; it issues an authorization request from the credit card company or financial institution to proceed with the transaction; and then it fulfills the authorization, allowing your website to proceed to the next step.

Types of Payment Gateways

Typically, there are three main types of payment gateways to choose from:

1. Redirects – the payment gateway will take the customer to an option for payment like PayPal, for example. They will be sent to a PayPal payment page to complete the transaction, becoming a “redirect”. While it is incredibly convenient, some merchants dislike having less control, and it also involves a second step for customers.
2. Checkout on-site, payment off-site – Stripe, for example, involves having a front-end checkout on your site, but the payment processing actually occurs through Stripe’s back end. This option offers simplicity, but again, the merchant does not control the user’s entire experience.
3. On-site payments. Large-scale businesses tend to use this option. It involves much greater responsibility because the entire process happens through your system, but it does give you complete control of the user experience.

Top Things to Consider When Choosing a Payment Gateway

To be able to accept online payments through your website or eCommerce site, you will have to secure a payment gateway first. Payment gateways online have never been more convenient, but there has also never been so many options to choose from. How do you know which one is right for your business type and industry? Especially if your business is considered “high risk”, it can be challenging to choose the right one for your site.

Here are a few things to consider as you search:

1. Availability

Make sure the provider you choose offers a gateway that is available in your country of business and in your customers’ location.

2. Transaction fees

Most payment gateways will involve a fee for each transaction processed from your eCommerce store. This fee is typically based on your location, the card type used to pay and the number of monthly transactions. Make sure you compare the transaction fees of different providers.

3. Recurring payments

If you offer subscription-based products or services, you will need to make sure the gateway you choose allows recurring payments.

4. Miscellaneous charges and fees

Be sure you understand all miscellaneous charges and fees you might encounter with different providers. These might include setup fees, account maintenance fees, withdrawal charges, chargeback fees, etc.

5. Customer payment options

Especially today, making sure you offer the most convenient options available is a must. Find out which payment gateway allows you to accept payments from as many different card issuers and processors as possible.

6. Payment security

Fraud is becoming more and more of a problem for the eCommerce industry. You’ll want to choose a gateway that provides systems and programs that protect your customers’ payment data and your online store.

For even more information on choosing a provider, make sure you browse the many reviews and tips Best Payment Providers has to offer. Find everything you need to choose a payment gateway that is right for your business and its unique needs.