Things You Need to Know about Payment Gateways

Accepting online payments is as easy as flipping channels on Television. Thanks to the plethora of online payment gateways. But it could be quite complicated to find the right payment gateway or mobile wallet app for your business. With a perfect gateway, you don't have to worry about anything. It might take some time and therefore here we have come up with some narrowed options for you. Let’s see how someone can get the best payment gateway:

How payment gateways work

If you’re seeing this post, you are probably in need of a gateway. Before going any further let's understand how it works and why you need it. In a nutshell, payment gateway allows a store to safely request payments from clients. Whenever clients “order,” a payment gateway handles all the next steps.

Here's what a Payment gateway does: 

Verifies customer’s billing info

Verifies funds for payment method

Approve requests and assigns confirmation number.

Most importantly it gets you paid for your services or products. 

Modern or Classic: Choice is yours

Payment gateways have evolved in a better way in the last couple of years. 

There was no way to get funds without a merchant account. Every payment gateways needed that earlier. Store owners had to apply for a merchant account through a bank which allows directly receipt for credit card payments. Without this, no payment gateway would have sent money to your account. Though, there are lots of payment gateways that don’t need a merchant account. These gateways move funds directly from your customers’ credit cards or bank accounts, verify, and then put them right in your account.

So, we decided to divide into two categories: modern payment gateways which don't need a merchant account and the other one which needs an account. 

Easy to set up: Modern payment gateways:

The biggest advantage of this type of gateways is that you will not require to switch bank accounts or anything else more complicated to setup things. Also, you can integrate such gateways with your website quickly. 

Though there are two negative impacts:

Modern gateways usually impose higher per-transaction fees than traditional gateways, 

Almost all of these gateways give customers off-site to make a payment, which can decrease conversion rate for some stores.

Classic payment gateways: More Hassle but less charges 

Classic gateways are the most used payment system. Authorize.Net and WorldPay are examples of such gateways. 

After comparing classic payment gateways and modern gateways, you'll find classic ones are more complicated to use. They need more time for setting up things. Also, you will need a merchant account for integration. 

If you are opting for a classic gateway, make sure that you have a merchant bank account. If you don't have the bank account, it might take 4 to 6 weeks to get one. 

But as mentioned above, per-transaction fees for classic gateways are often lower than modern ones. So it’s worth considering how much you’ll pay in the long run, and if a little hassle is worth more than the gateway fees.

So, What's the Solution? 

You can choose the classic payment gateways with the lower hassle and Merchant Account. You can also get a best digital wallet and customize it as per you business needs. Companies like Wallet factory offers such options.

Hope you liked this article. Will see you soon in the next one.