If you have an eCommerce website or are in the process of building one, one thing is evident. You need to have a secure and easy-to-use payment system for your customers. Otherwise, prospective buyers and customers will leave the cart unattended if they feel unsafe or if the checkout process is complicated.
New online business owners sometimes need help understanding the concept behind integrating a payment system into their eCommerce system. This article will provide an in-depth guide on everything you need to know about an online payment gateway.
Let’s get started.
What is a payment gateway?
When buying products or services online, you first select the item you want. If the product satisfies you, you can click on the ‘buy now’ or ‘purchase’ button depending on the seller. The website will direct you to a payment page where you’ll enter your debit and credit card details to complete payment.
Now, the system that carries out the complex process of checking the card’s validity and approving the payment is what we refer to as the payment gateway. The payment system will ensure that the payment process is smooth, protects you from fraud, and ensures that the merchant accesses the funds. If the website is compatible with many payment gateways via a payment orchestration platform, buyers find it more convenient to use. What’s more, payment orchestration facilitates the process of handling payments from various countries and currencies.
Types of payment gateways
You’ll find up to four types of payment gateways. They include:
- Hosted payment gateway
When the buyer clicks on the ‘Pay Now’ button, the payment gateway will direct them to the payment service provider. It works best with e-commerce owners that don’t want the task of maintaining the payment system.
- Self-hosted payment gateway
This type of gateway simplifies the checkout process because the payment process takes place entirely on the merchant’s website.
- API-hosted payment gateway
Merchants who want to enhance the user’s experience during checkout should consider this. The payment gateway uses an application programming interface (API).
- Local bank integration gateway
This type of payment gateway redirects the user to the buyer’s bank. It’s similar to the hosted payment gateway, only that – in this case – the request goes directly to the user’s bank.
Which is the best payment gateway for your business?
As you research, you’ll find many brands that offer these services. But which one should you go for?
Our advice to beginners is to start by assessing your business needs first. What would you like to achieve? And what experience would you like your clients to have?
After analyzing your business needs and budget, your next job is to look at the most reputable options. Things to consider include the following:
- Types of cards they allow
- How many currencies is it compatible with?
- Is the system user-friendly?
- What are the transaction fees?
- How long will it take you to access your funds?
- Is the system secure?
- Does the brand offer 24/7 support?
There you have it. If you are starting, these are some things you should know about payment gateways. Be sure to consult with experts to enhance your decision-making process.