4 Ways to Choose a Payment Gateway for Your eCommerce Store

The digital revolution has made it simple for consumers to shop online via multiple eCommerce websites that accept a variety of online payment systems. Choosing the right payment gateway, on the other hand, is a challenge that many decision-makers face. This article will provide you with four recommendations for selecting the best payment gateway provider for your company.

Tips for Choosing the Right Payment Gateway

People's acceptance of online monetary transactions is growing rapidly, as is their use for shopping and banking. The main credit for increasing ecommerce transactions goes to the consistent working model of a payment gateway that complies with PCI Data Security Standards via secure web and mobile application development. As a result, when it comes to selecting the best integrated payment gateway, decision-makers must apply some logic.

Furthermore, by integrating payment gateways into enterprise mobile apps, the problem can be solved by outsourcing to the best application development company. Here are four factors that decision makers should consider when selecting a payment gateway.

Security: 

It is one of the most important considerations when selecting a payment gateway. With a higher volume of online transactions, there is a greater likelihood of credit card fraud and false transactions. The Payment Card Industry Data Security ensures that customers' virtual money data is collected and securely stored, lowering the security risks associated with online transactions.

Because compliance with such standards is the responsibility of the merchant and the service provider, your online payment gateway must be PCI compliant. The method of capturing credit card information is critical when choosing a payment gateway provider because it involves selecting data from an iframe, hosted, or API.

Choosing the Classic or Modern Type of Gateway: 

The primary distinction between the Classic and Modern gateways is the merchant account. The classic gateway requires a merchant account, whereas the modern gateway does not because it is directly synced with the bank account.

Traditional payment gateways are best suited for businesses that deal with a high volume of online transactions on a daily basis. However, there are numerous challenges in deploying a Classic Gateway, such as the lengthy setup time, the scarcity of appropriate technical resources, and the lack of integration flexibility with APIs and merchant accounts. When compared to modern gateways, the Classic Gateway has the lowest per-transaction fee.

Modern Payment Gateway, on the other hand, is relatively simple to set up and does not require a merchant account. However, the transaction rates are relatively higher. The only disadvantage of using a modern payment gateway is that it redirects customers to the payment site, which can reduce conversion rates.

Lock-in Period & Transparency: 

Many service providers charge low digital transaction fees but have many hidden charges and lock you in on a long-term basis. Many SMBs have encountered such service providers, so charge transparency is critical for businesses dealing with digital money and online transactions.

A clear and simple pricing plan is the best way to evaluate the service provider. Transparency throughout the business transaction is critical, assisting you in identifying costly payment gateways and switching to the other service provider. There are a few vendors who also provide data portability services.

Selecting the Best-suited Hosting Policy: 

There are two methods for hosting payment gateways: off-site or through a hosted method, and integrating gateway.

One of the most significant benefits of using a hosted payment gateway is the ability to leverage responsibility, as the offsite provider is solely responsible for PCI compliance and data security. On the downside, some countries do not trust offsite payment processors, making it difficult to gauge the user's perception of how they perceive a hosted gateway. Furthermore, redirecting users to another website is not a good idea because it results in lower conversions.

The Integrated Gateway connects your eCommerce site to the pre-delivered API of the gateway. With this approach, the customer never leaves the site to make a payment, resulting in a smooth and seamless purchasing experience for the customer. However, the integrated gateway has a limitation in the form of integration capability for specific gateways. Custom programming and integration services are required to integrate integrated gateways into your eCommerce store smoothly.

Many business owners use the tips mentioned above to choose the best payment gateway for their online stores.