5 Must-Haves of an Effective Payment Gateway Solution
Your dream of having and running your online business is slowly coming to fruition. You have an attractive website with a catchy name. The visuals of your online catalogs look stunning.
However, you haven’t thought about how to accept and process payments from your customers. A payment gateway is an ideal solution for you as processing payments in-house require a significant investment on hardware and software, not to mention the tons of standards, regulations, and policies you have to comply with.
Running a business with a payment gateway makes accepting payments easy and secure while adhering with compliance. A popular payment gateway example is PayPal. It is a widely used payment gateway that services millions of buyers and sellers from all over the world. That said, there are also other options that are worth looking at that will suit your business needs better.
With so many payment gateway providers competing for your business, choosing the best may be a tad difficult. That said, following a payment gateways guide will surely help you weigh your options and make the right decision. With that in mind, here are the must-have features and factors you should look for when choosing a payment gateway that will ensure you effectiveness:
1. Compatibility with Your POS/E-commerce Applications
There are quite a few payment gateways available in the market. However, you should evaluate the providers you have in your payment gateway list thoroughly before making a decision.
It’s highly recommended that you pick a merchant service account. In addition, one of the many things you have to consider is whether the payment gateway you’re considering is compatible with the POS and e-Commerce applications you have or planning to get.
Picking a payment gateway that is fully supported by your POS and e-Commerce systems and vice versa has many advantages. It accelerates the checkout experience of your customers. You don’t have to enter amounts manually, thus greatly reducing the risk of human errors. Aside from streamlining the checkout process, it also speeds up your daily closeouts.
2. Optimized for Mobile Wallets and Payments
More and more people are purchasing stuff online because it’s fast and convenient. In fact, mobile payments are becoming the norm.
Business owners who have an outdated understanding of how payment gateway works need to wake up if they want to remain significant and competitive. Online shopping and payments are no longer confined to desktops and laptops.
If you want your business to get a huge slice of the online sales pie, then it is imperative that you get a payment gateway that supports mobile wallets and accepts mobile payments.
3. Strict Data Security Measures
Data security is a paramount concern, one that should not be overlooked. A 2018 data security survey by Thales discovered that 75% of US retailers saw their online stores experiencing cybersecurity failure at least once. Another report revealed that in 2018, approximately 90 percent of total login attempts to online retail stores were from hackers hacking their way in.
There are a variety of ways to secure your business, your data, and that of your customers. One such way is to select a payment gateway is designed to repel attacks and prevent hacking attempts as well as place a buffer of encryption between customers and sellers.
It is highly recommended that you pick a payment gateway that has a Payment Card Industry Data Security Standard (PCI DSS) accreditation. A PCI-compliant payment gateway strictly adheres to high-level banking standards to safeguard customer information and payment details. That is something you would want for your business and for your customers.
4. Payment Fraud Detection and Prevention
Online payment fraud has been a lingering problem for online merchants, SMBs, and big corporations alike. In 2018, US-based online businesses lost $6.4 billion due to payment fraud according to Statista. The small business sector took the largest hit, with each business losing an estimated $115,000 a year.
Most payment gateways provide basic security features to detect and prevent fraud. But in this rapidly evolving world, you need more advanced capabilities from your payment gateway to ensure your business doesn't become prey for fraudsters.
If you are looking for a payment gateway for your business, it should have advanced and effectual anti-fraud features such as Address Verification Service (AVS), Card Verification Value (CVV), Device Identification, Flag Large Transactions, and High-Risk Countries among others.
5. Supported Locations, Currencies, and Cards
Most payment gateways like PayPal, AerospacePay, and Stripe accept payments from all major credit/debit cards and cater to international clients. But not all payment gateways support all payment channels and are authorized to accept payments from specific regions.
Customers also have their own preferences. Some payment gateways have higher processing fees than others. Transactions done in local currencies are cheaper as compared to processing them in dollars or euros. Also, compliance policies and regulations on online payments differ from region to region.
These are major considerations you have to mull over when shopping for a payment gateway. It is essential that you have these areas covered prior to making a decision.
Always Read The Fine Print
Now that you have narrowed your list and you seem ready to declare your pick, it is best that you proceed carefully. Reading the fine print, like the Terms of Service, contract stipulations, terms and conditions, and legal matters is important.
There are certain conditions in place that may impact your business. Some payment gateway providers limit the number of transactions as well as the value per transaction within a specific period. Certain goods are not allowed for sale and payment for such products can be delayed, blocked, or even canceled.
These are small things but can really affect your business in ways that can surprise you. And if you don’t want any of that, make sure you understand what you’re purchasing before you get into a partnership with your payment gateway.
Card Z3N, LLC.