5 Tips For Web-Based Merchants Choosing A Payment Gateway

in Blog
on Thursday, 18 June 2015 11:41

If you accept payments online, you must have a secure way to collect and process credit cards and other online payments. Not only do today’s customers demand data security, government regulations require it.

Almost all web-based businesses use third-party payment gateways rather than going through the complicated, expensive and time-consuming process of building payment processing software themselves. But it can be difficult to decide which payment gateway is best for your company.

Here are five tips that all web-based merchants will do well to keep in mind when choosing a payment gateway:

1. Consider fees. Most payment gateways charge a flat or monthly fee in addition to a per transaction fee. The transaction fee can be a percentage fee or a percentage plus and additional flat fee. If you’re changing payment processing companies, you have a history that indicates how many online transactions are likely each month and which plan is appropriate for your sales volume. If your company is new or just starting in online sales, you need to choose a payment processor that makes it easy to change volume-based fee structures based on your evolving knowledge and changing needs.

2. Think about ease of integration. Payment processing is usually handled on the service provider’s servers to keep your business from having to deal with data security compliance issues, but you need to consider how easily the payment process can be integrated into your website. In most cases, this means sending customers to the payment gateway’s website to complete payment, but you must choose a company that can integrate with the shopping cart software you’re using. You want the easiest integration process possible, no matter how you do it.

3. Decide if customer awareness matters. In some cases, it may be beneficial to choose a payment service provider that customers will recognize by its reputation, like PayPal or Amazon Payments, for example. But customers may have awareness of only a few payment processors or none at all, so this may not be an important factor for you. Customers may simply want your assurance that their personal data is being protected in some way as it is being sent over the Internet.

4. Choose whether brandability matters. Using a payment gateway that will at least allow the inclusion of your logo or other branding marks on the customer payment gateway can benefit you. When customers are sent to the third-party site for payment processing, seeing your logo there may give them additional peace of mind. Anything you can do to increase customer comfort with the payment process is important to prevent lost sales from abandoned shopping carts and incomplete orders.

5. Find out how quickly you get your money. Every payment gateway you consider will have stated practices for remitting payments to you. Look for the fastest possible turnaround -- and make sure other companies using the provider are getting the expected turnaround by doing some research online. If a payment processor doesn’t do as it says it will for other clients, choose another company.

You need complete confidence in the payment gateway you choose to handle your online transactions. At PayVisors, we’re a sales consulting company and can help you make an intelligent decision. How may we serve you today?

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