07 factors to consider while choosing an ecommerce payment gateway
- 1. 7 factors to consider while choosing an eCommerce Payment Gateway Lack of considerations in selecting a payment gateway adversely affects the conversion rate of ecommerce portals. In fact, the average cart abandonment rate stands at 69.57%, as per the Baymard Institute. They have calculated this value after analyzing 40+ studies. With digital commerce ruling the world, there’s no shortage of advance payment gateways. However, choosing the most potent ones plays a crucial role in making the most of it. Here you will find the following to clear your doubts and confusion regarding payment gateways: ● What exactly is a Payment Gateway? ● The working process of Payment gateways.
- 2. ● How do Payment Gateways secure information? ● Top 7 factors to keep in mind while selecting a Payment Gateway. Discussing first things first; What is a Payment Gateway? Payment Gateway is the technology that allows businesses to collect digital payments from clients. It works by connecting the client’s bank account to the business platform to transfer the amount smoothly. The standard payment modes include credit cards, debit cards, net banking, wallets, QR code, UPI, etc. How does a Payment Gateway work?
- 3. To keep it lucid, I have explained the entire process in simple steps: Step-1: The process starts when the user selects the check-out button/payment option or any other equivalent. Step-2: The user then lands on the Payment gateway page. Step-3: He/She fills all the debit or credit card data and clicks the submit or ok option. Step-4: The Payment Gateway then lands the user on the secured page of the issuing bank and asks for transaction authorization. Step-5: Once the user authorizes the transaction, the Gateway checks the availability of the transaction amount in the user account.
- 4. Step-6: When the balance is sufficient, the bank settles the amount to the Payment gateway and the user’s account. That was a concise explanation of how a Payment gateway works. The entire mechanism is secured by ensuring encryption, hash function, etc. Must Read: WooCommerce vs Magento: A Feature Rundown and Comparison Here’s how the Payment Gateway secures the entire transaction process ● The transaction gets carried out through an HTTPS server where the letter S stands for Secure. The server develops an encrypting link between the browser and the webserver. ● The system relies on a signed request which remains confined between the user and the Payment Gateway only. ● The IP of the server gets checked for any malicious activity, spam, etc. ● To ensure an additional layer of security Virtual Payer authentication is employed in the Payment Gateway. Having gained sufficient knowledge about Payment Gateway, let’s have a look at the crucial factors that must be taken care of while choosing one for your eCommerce platform. Here are the top 7 factors for choosing an ideal Payment Gateway 1. Track and integrate the popular Payment modes When catering to eCommerce clients, you don’t want to lose potent sales due to the lack of popular payment options. So, it is essential to analyze the most preferred modes of payment. The Infographic below presents an idea of the preferred payment options worldwide.
- 5. Source: Statista The infographic clearly illustrates that the cards, vouchers, and mobile payment options are preferred modes of Payment. The preferred payment option also depends upon the target audience of the Commerce platform. For example, an eCommerce platform catering to senior citizens witness higher transactions using credit and debit cards while catering to younger generation witnesses’ transactions using e-Wallets, QR code, etc. Once you have found them, it is necessary to ensure that the Payment gateway you choose is compatible with all of them. Must Read: Drupal vs Opencart 2021: Top Features and Pricing
- 6. 2. Consider integrating international services Retail eCommerce solutions that aim to reach a high target audience must consider integrating international payment services. Opting for integration of Payment Gateway that supports international transactions is costlier but proves worthy in the long run of the enterprise. While selecting an international Payment Gateway, look for buyer’s protection besides accepting all kinds of credit and debit cards. 3. Ensure Quicker Onboarding Payment Gateway service activation requires you to go through document verification, authorization, etc. The eCommerce web development services provider must ensure planned integration of the Payment Gateway to minimize the risk of delay on the project. You can also hire top ecommerce developers to ensure planned integration of the Payment Gateway to minimize the risk of delay on the project. 4. Look for consistent support
- 7. Inefficient performance of the Payment Gateways due to technical glitches, a high number of users, etc., adversely impact the conversion rate of the eCommerce platform. It is essential to go for standard Payment Gateways that offer continuous support to your eCommerce platforms to tackle minor and major issues. Client support in the form of emails, live chats, calls, etc., facilitates quicker resolving of problems and errors. Must Read: An overlook to the future of hybrid app development 5. Availability of Smart Analytics Ecommerce growth can be effectively analyzed by looking at the smart analytics offered by Payment Gateways. The analytics will help you realize the frequency of transactions done by clients, the preferred mode of payments, whether cards, net banking, or mobile wallets.
- 8. 6. Consult overall charges The majority of the eCommerce Payment Gateways charges around 2% to 6% and a processing fee of $0.30. Before selecting any of them, it is essential to look whether the Payment Gateway is also charging a setup fee, annual fee, etc. Payment Gateways like PayPal and Amazon Pay don’t charge a setup fee for the investing eCommerce platforms. Overall, the Payment Gateway services may require you to pay for the following: ● Registration Fee/ Setup Fee ● Monthly charges ● Charges on each transaction either fixed or dependent upon the sum ● Charges for making refunds Must Read: Top Pros & Cons of using Spring Boot for business enterprises 7. The level of Security offered
- 9. According to Software Development Stats, 21% of data breaches are done on credentials. The level of security offered builds trust among the consumers of the eCommerce platforms. While choosing any standard Payment Gateway, you can check whether they offer 3D security, measures for fraud prevention, two-factor authentications, etc. Standard measures employed for enhancing the security level of the Payment Gateways include the following: ● Secure Socket Layer (SSL) certifications ● Secure Electronic Transaction (SST) ● Payment Card Industry (PCI) compliance Must Read: Top 7 Compelling Characteristics of Java Development
- 10. Final Words That was all about the essential things you should consider while choosing an eCommerce Payment Gateway. The eCommerce website development company in India offers integration of safe and secure Payment Gateways to develop a smooth functioning platform. Original source