Whether you are venturing on a new e-commerce business journey or planning on enhancing an already flourishing one, a subtle payment system can work wonders for you and your customers. The world is progressing into a new era of digitalization and online payment methods, and one must stay modernised when dealing with trade and public sector investments. So, here we are with a complete guidebook for those seeking enlightenment on the Payment gateway selection process.
Pay discreet attention to the following sections of this article to gather every last crumb about the factors you must consider before deciding on a perfect Payment Gateway for your E-Commerce Business. Thoroughly navigate the blog and leave no section because a little knowledge is a dangerous thing!
Let’s Go!
What is a payment Gateway?
If you are new to the enterprise, you must know when a customer or a dealer makes an online transaction, a digital system takes care of the security and procedure. Hence, the funds were transferred safely without any glitches. This system or online service, called a payment gateway, ensures secure deduction and deposit of money from one bank account to the other. Your transaction may be through a credit card, debit card, digital payment application, or internet banking. A suitable Payment Gateway will always ensure the privacy and protection of the user.
Common Payment Gateways
Here are a few common payment processing gateways that are reliable nationwide and also internationally. You can select any of them based on their availability in your location and your interests in them as per your ideals and expectations.
| Popular in India | Internationally acclaimed |
| Paytm, Razorpay, Instamojo, CCAvenue, and BillDesk. | PayPal, Stripe, Square, Authorize.Net, and Braintree |
Selecting a Payment Gateway for E-Commerce: Points to Consider
There are so many popular and trusted gateways, but how can you find one that matches your expectations and the level of security you seek in your digital marketplace? Each transaction processor or Payment gateway has its own special feature. Paypal is known to reimburse failed payments. Paytm is the most widely used in India because of its multifunctional mobile wallet, which serves more than just one purpose, while Razorpay is exceptional because of its smooth transactions. So, how can you decide?
- Security: The most essential factor to consider while deciding on a payment gateway is whether it is safe for you and your customers. Minutely review the encryptions to ensure they align with the PCI DSS standard and keep the customer’s and company’s data safe.
- Additional Charges: Many payment gateways deduct a particular sum as their transaction fee. Based on your affordability and the quality of service they deliver you can determine whether you want to invest in a particular payment service or not.
- The efficiency of the Process: Evaluate the variety of methods your customers can use to pay. If you have a large audience from diverse backgrounds using various options to make their payments, you may need to select the platform that is fit to serve them.
- Reviews and Prominence: It is better to work with a payment gateway that has a good reputation in the market and is reliable. Consider speaking with experienced people and their choice in the matter. Check the reviews comprehensively before making your final selection.
- Customer support: One of the major negative feedbacks of an online payment platform or gateway is poor customer support. Analyze the platform’s promptness and reliability in terms of customer support. Also, you must keenly observe their resolutions in disputes.
- Compatibility: Confirm whether the payment gateway is in sync with the e-commerce marketplace for which you plan to install it. If your business plan and the payment platform system do not match, it is of no good use to you or your customers.
- User Experience: A professional investor would always consider the needs and expectations of its customers. If you or your customers do not experience smooth and uninterrupted usage during operations it is a waste.
- Additional features: A win-win would be if your payment platform shared miscellaneous notifications regarding recurring bills and customization features. Furthermore, additional fraud prevention tools can really make a difference.
Make a wise choice and make sure the payment gateway is benefiting your business and is enhancing the volume of transactions. Growth should be your first priority.
Payment Gateway Process Flow for E-Commerce
Why do you need a payment gateway? This should be the first question that pops up when you find out about its need while starting an eCommerce website or a shop. First things first, like a portal, allows the smooth and filtered transfer of articles from one end to the other, you need a gateway to make payments when working on a digital market. Since, not all you customers can pay the sum for the service or commodity in a physical manner, Payment Gateways allow a seamless flow of funds with fraud detecting filters, aka tools, from one account to the other.
Here is how the payment portals operate for the e-commerce industry:
- Firstly, the customer selects an item or the service they seek and proceeds to the payment tab to place the order.
- Then, they enter the essential card details, credit card, debit card, or bank account details.
- The next, step is that the merchant’s server syncs with the buyer’s, and data sharing begins.
- Now, comes the payment gateway, which transfers the information to the payment processor to allow it to check the merchant’s bank.
- The process begins by checking the card affiliation and approvals set forth.
- The next step ensures that the merchant’s bank approves and forwards the permission to the gateway.
- The most crucial moment lies in the hands of the payment gateway to ensure the transaction is safe and advance forward the funds.
- That’s how the banks settle an e-commerce transaction with the help of a payment gateway.
Final Thoughts!
For a successful business, you must take every decision with precision and payment is one of the major aspects of any venture. Therefore, select one that only serves the purpose but also enhances the growth of your e-commerce website. It should carry out a hassle-free transaction and furnish a user-friendly experience to all your precious customers. The payment gateways should thoroughly go through all suspected fraud activities to ensure there is no data leakage and tools to detect and notify the customers before anything infelicitous occurs.
Common Queries!
What are the main factors to consider while choosing a payment gateway?
A merchant must ensure the platform is safe and secure regarding the customer’s data, Additional Charges are optimal, transactions are seamless, has more than satisfactory user experience, and features additional services, etc.
Which is the most used payment gateway in India?
The most popular payment gateway in the nation is Paytm.
How can I choose the best payment gateway compatible as per my e-commerce business?
To select the best payment gateway for an e-commerce business, you must check if it is compatible as per your venture and promotes its growth.
