Why Payment Gateway Is The Best Solution For Your Business?
by Megan Turner Marketing ManagerThe backend
processing of orders has always been overlooked which remained an under-analyzed segment of e-commerce business. Entrepreneurs nowadays invest a lot of
money and time to perfect their website but often ignore the significance of
payment system. They should invest time to choose the top South African payment
gateway, merchant processor and bank account in order to provide flawless
services.
Payment Gateways
A payment
gateway is the system used to transfer your customer’s payment information from
your eCommerce website to merchant’s bank account. Take it as a terminal that
collects, encrypts and securely transmits the data to merchant account. There
are different services to choose from when selecting best payment gateway, but
it is always important to know that the gateway you choose should be compatible
with your e-commerce. You can create a list of top payment gateways your
e-commerce solution accepts and contact each one of them to get to know about
their service offerings and rates.
Merchant Processors
The payment
gateway communicates the encrypted billing data to merchant processor who then
route this data to the credit card network. The credit card network verifies
customer’s credit card validity along with fund availability to cover
transaction. It then notifies the payment gateway which then communicates with
your e-commerce website solution. If the transaction is approved, the merchant
processor will transfer your settled orders to your bank account and if
declined, the transaction will be canceled.
The
merchant processor is a backend system that communicates with the payment
gateway, your bank account and your customers credit card network. This is a
streamlined method to accept credit card payments online. It is important to
know whether your merchant processor, payment gateway, bank account and
e-commerce solution all work together.
Things To
Know
When selecting a payment gateway review and verify the following:
Gateway Setup Fee- Many payment gateways need an initial payment for
configuration.
Monthly Gateway Fee- This is an ongoing fee charged for the services
of payment gateway.
Per Transaction Fee- Every transaction that is made charges a certain
amount of fee which includes refunds, voids and declines.
Batch Fee- If you choose to settle your transactions every day then
you will be charged on daily basis.
API Integration- Make sure your website shopping cart can be easily
integrated with the payment gateway.
When reviewing this data make sure that you specifically understand
all the requirements and fee structure. Also, remember that you can negotiate
all these items. It certainly worth a shot to call and try to negotiate in
order to get best rates.
Verify And
Review The Following When Choosing A Merchant Processor
Setup Fee - same as above
Per Transaction Fee - same as above
Monthly Fee - same as above
Contract - same as above
Qualified Discount Rate- This is a tricky fee to track and the
qualified rate is for specific credit card types and cards.
Non-Qualified Rate- You must understand which credit cards do not qualify for discount rate so you can crunch the numbers. This fee can be double of your discount rate.
Sponsor Ads
Created on Mar 3rd 2020 23:40. Viewed 400 times.