No Ecommerce website is complete without a secure and convenient payment feature. There are a number of payment gateway services available and it is crucial for the success of your Ecommerce store to choose the right online payment solution.
How does a payment gateway work?
The payment service gateway application facilitates communication between the ecommerce website, the merchant account and the credit card processing bank. The process works as follows
A customer enters credit card details in your secure order form.
The payment gateway sends the data after encryption to the credit card processing bank.
The card issuing bank confirms the transaction and relays information back to the gateway.
After this, the funds are transferred to the merchant account.
Important criteria for selecting a payment gateway solution for online payments
The key features to look at when choosing your online payment service provider are
Security – The main concern for customers
Costs – The breakup of costs needs to be understood clearly
Performance – This is important as any failures or downtime means losses
Support – This can vary significantly between providers as well as plans chosen
Security and Confidentiality
Payment gateways process sensitive data like credit card and order details. Security is the primary concern for most of the online shoppers. All major service providers’ offer strong security features including strong SSL encryption.
Protection from fraudulent transactions
Most payment gateways offer the tools necessary to protection an online business from fraudulent transactions. The fraud prevention tool is one such. This uses measures like cross verification of the customer’s address in the order details with that listed with the credit card issuing bank.
Some gateways also compare the security number provided by the customer for further authentication. This helps in avoiding issues like chargeback which can occur with alarming frequency without any preventive measures.
Automatic Billing for Ecommerce websites
If you offer a service offering subscription or membership, look for a payment gateway service that offers a recurring billing feature. This option lets you automatically charge customers for service offered on a periodic basis without having to manually input the details every time a customer is to be billed.
Various modes of payment accepted
Convenience is what customers look for today. A payment gateway that comes with the ability to manage multiple modes of payment is always preferred. Offer customers flexible payment options like e-checks, mobile cash and digital wallets which will ensure a better customer conversion rate.
Understanding the various charges applied
Now we come to the cost factor. Most online payment service providers will charge fees for
Support or helpdesk
Some providers will charge for every transaction processed by the gateway irrespective of whether it was successful or not. If your sales volume is on the higher side choose a service provider with a fixed monthly rate.
Performance and reliability
Another important criterion is performance. If while ordering your products, a payment gateway failure means lost sales. Reliability is a key factor which should not be compromised at any cost.
Some prominent online payment service and gateway providers