Articles

4 Factors of Choosing a Payment Gateway for Your eCommerce Platform

by Amit K. Marketing Manager

Earning money is the lifeline and primary aim of any business. Businesses pay a large amount of money on generating more money through advertisements and marketing. The crux of a good eCommerce platform is the reliability and speed of the best payment gateway in India. While it may sound very simple, a great amount of research goes into choosing the right one for your business. This article tries to explain the different aspects of choosing the right payment system, making it a pleasure to do business as well as a pleasure for your online customers to transact through your website.


Photo by CardMapr.nl on Unsplash

Coverage

Coverage is a major factor when looking at payment gateway solutions in India. If you are a local provider doing focused business, you may be able to manage with a Payment Gateway that accepts only Internet Banking as a mode of payment. Many small providers choose to have only Net Banking as an option, as it usually attracts lesser fees. Larger providers must have an array of payment options for their customers to choose from, else they may lose out on competitors offering a more popular method of paying.

While transaction fees and commission on a Credit Card Transaction maybe higher, there may be a lot of customers wanting that extra bit of Credit for some essential household commodity or that essential footwear from your website. If you don't offer the option of Credit Cards, they will just not be able to buy from you. There may also be the budget conscious lot who refuse to use a Credit Card and will insist on paying instantly with a Debit Card. There are also many who prefer Mobile Phone Apps to pay the money.

Currency coverage

Another aspect of coverage includes currency coverage. Which currencies your gateway covers determines your reach and scope of doing business. People are most comfortable thinking about a purchase in terms of their own currency. You wouldn't want to bother about the exchange rate and the actual cost of purchasing the goods in another currency.

Fraud Checking

Fraud Checking is also an important aspect of which payment service provider you choose. Many providers offer multiple layers of verification and checking. Some send a One-Time Password to the mobile phone of the customer, while others have an automated IVRS Phone Call which verifies the Phone Number of the Client. Either way, fraud checking should be the responsibility of the best payment gateway in India. You should be free to concentrate on your online business and not have to bother about a payment being disputed.

How soon will you get your money? Many payment gateway providers credit the amount received on behalf of your business, to your bank account only at the end of the month. This may not be very suitable as you may want to use a part of that money for running your business. Some providers also withhold your money until a certain threshold is reached. This is more uncertain, as a dip in sales in future months, will block your previous money as well. This may cause unpredictability and prevent you from planning your budget. But if you are a small business, wanting to pay less fees, you may have to bear with all these restrictions. A larger business has more bargaining power.

Commission and fees

How much commission will they take? Commission and fees are an important point to ponder over before choosing a payment gateway. Some charge a fixed yearly fee in addition to a percentage of the sale amount. Others do not charge a yearly fee and instead include it in the percentage of commission per transaction. Some charge less for Credit Card Transactions, while some base the commission upon the Volume of business that you can commit. Large shopping websites also offer their own payment gateway solutions in India, which charge a lesser fee, in exchange for your client's data or information.

A payment gateway is a pillar of any online business and must be fast, easy to understand and should not be notorious on the safety front. A security conscious customer will definitely be driven away from a shady looking design or archaic format of the payment gateway system. A good example is a popular travel website in India, which was able to do better sales of train tickets as compared to the Government website which was slow and painful to deal with.

The maximum failures on the government website were due to the payment system having issues or timing out. It just couldn't handle the load. This increased costs of replying to support emails from angry customers. The e-ticketing website has a quick and easy payment system, which offered to retry the failed bookings. The success rate with this system was visible with the bumper sales. The same can also be achieved by you, with some effort and the right solution.



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About Amit K. Senior   Marketing Manager

217 connections, 6 recommendations, 544 honor points.
Joined APSense since, February 5th, 2021, From Kolkata, India.

Created on May 5th 2021 06:23. Viewed 85 times.

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