We know. We get it. You want your customers to enjoy a painless experience at checkout but you just don’t know how to make that happen. There are traditional gateways, modern gateways, integrated gateways, and hosted gateways. There are new, more stringent regulations requiring data storage and security, and there are customers banging down your proverbial – or in this case, digital – doors to buy, buy, buy! So, what should you do? Should you go through the sometimes cumbersome and time-consuming process of setting up a merchant account, or should you forego that process altogether?
Just like your very first date that generated question after question and left you overwhelmed and frustrated, deciding on what payment gateway to use can be a daunting experience, especially for businesses wishing to reach a global audience.
With a sea of choices and several factors to consider, companies can end up with a payment gateway that isn’t quite suited to their business needs, nor to the needs of their customers. You do not want to settle on a payment gateway to discover at checkout, that customers have bailed out. With online competitors at every turn, customers often have several choices, so their checkout experience with you can literally make or break a payment transaction. Ultimately, the user experience (UX) at checkout should be as easy, seamless, and painless as possible – and choosing the right payment gateway is key.
In the coming weeks, we will be unrolling a series of posts that will help to answer some of these questions, clear the smoke, narrow your choices, and get you closer to finding – and owning – your payment gateway to success.
Here is a sneak peek at what reports are in store in this series:
Generally speaking, a gateway provides an opening to freedom, to the place beyond, to adventure and the promise of prosperity. Consider the gateway used in The Secret Garden and The Chronicles of Narnia. In a nutshell, gateways are our ticket to success and this is no different in the world of ecommerce. In technology, gateways are software applications used by payment service providers to process payments for online purchases. Gateways verify the customer’s banking information and confirm the availability of funds with the financial institution of choice, then relay this information back to both the merchant and customer. Sounds simple, right? And it is, except not all payment gateways lead to the promised land of prosperity. Whether you operate a large or small business, it is important to find out key information about your gateway choices. Deciding on any gateway without doing your due diligence may lead you down the wrong business path. Some payment gateways for instance, charge a flat-rate fee, and some, a fee per transaction. Bank charges may apply for eMerchant bank accounts which will affect your overall profit. However, for every downside, there is an upside. Knowledge is power, and the more you discover about the choices in payment gateways, the more prosperous you will be.
Deciding on whether or not to utilize a hosted or integrated payment gateway must not be overlooked. Hosted payment gateways temporarily lead the customer offsite in order to obtain financial information, while integrated gateways can obtain this same information onsite. However, almost all hosted payment gateways manage sensitive customer data on your behalf saving you the stress of worrying about this security. All PCI and security issues are handled by the offsite service. Hosted gateways are also responsible for the setup, saving you time and hassle. The downside to hosted gateways however, is the company’s loss of control over the customers’ UX which can often be slow and cumbersome.
Integrated payment gateways connect your business to gateways services using an application programming interface (API). One of the pros to using this type of gateway includes a relatively painless UX since the customer is not redirected offsite. Generally speaking, integrated payment gateways offer a quick, mobile-friendly service, but bear in mind that you will be solely responsible for being PCI DSS compliant.
Some of the essential questions to focus on when comparing payment gateways include the existence and level of security, PCI compliance, reliability, ease of use, and accessibility to technical support. But that isn’t all. You also need to consider in what country or countries you will operate, whether or not your service or product generates recurring payments, and whether or not the payment gateway impacts on the user interface of your online store. Will the payment gateway perform in real time, and will it offer high-quality technical support?
We will expand on all of these areas and more in the coming weeks. In the meantime, here are a few tips toward your gateway to success.
There is a lot of information to digest in this series, which is why we are breaking it down into bite-sized chunks. Don’t miss out! We will keep you posted as each new report is published so that you are sure not to miss anything.
According to a number of reports, global e-commerce spending for 2019 will reach USD 3.6 trillion. This represents an annual growth of around 18 percent. That makes for a lot of zeroes.
Payment gateways that not only allow for a variety of payment options but that allow customers to pay in familiar currencies are very popular among the nearly 2 billion online shoppers worldwide. But shoppers want more. Does your ecommerce site make the grade? Let's look at the top 5 customer concerns when shopping online […]
In this report, we look at customer payment method preferences including the top 5 global payment gateways, global ecommerce trends, online shopping cart abandonment, and merchant and customer concerns. Does your ecommerce store provide the user experience your customers expect, or will they abandon their shopping cart at the checkout window? […]