Why Payment Gateway Is The Best Solution For Your Business?by Megan Turner Marketing Manager
The 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.
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.
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.
Created on Mar 3rd 2020 23:40. Viewed 163 times.