How to choose the Payment Gateway that best suits your business?admin_logicfusion
A payment gateway service is a payment collection option for the generated sales. In any business, payment options are of the utmost importance as every merchant aims for earning the maximum amount of profit and the same needs to be managed safely and accordingly. Therefore, it is extremely important for you to choose the right payment gateway option for your business.
How Payment Gateways Work
Payment gateway systems are an essential component when it comes to the electronic payment system, as it is crucial towards sending the essential customer information which is then redirected to the payee’s account. Payment gateway solutions have brought about a revolution in the business world as it makes payment options quick and hassle-free. For instance, earlier businesses were solely based on cash transactions and card payments which made it quite cumbersome for both the payee and the recipient. It involved getting paper signatures and both the parties being physically present. But with the development of payment gateway technologies, the same has become simpler and hassle-free as now the signatures have been replaced by PIN numbers.
The same payment method can be accessed via phones and the software installed on the cashier’s site. It has also paved the way towards contactless payments and purchases. In addition to that, remote payments have also been made more popular and accessible via payment gateway options. In regards to the same, payment gateway architecture differs for store payments and online payments as the latter requires Application Programming Interfaces (API) that is required for the site to communicate with the payment network. The former makes use of the POS terminal that connects to the payment processor via the internet.
Why should you choose an appropriate payment gateway method?
A merchant needs to choose the correct payment gateway as it determines the currencies accepted, transaction tax incurred, and how soon the paid amount is reflected in the merchant’s account. Therefore a merchant needs to choose the correct payment gateway option, and here are a few ways mentioned which can help one do the same.
- Hosted Payment Gateway: This method is best suited for small scale merchants as it uses an external processing system where the payment is processed via the service provider. It is recommended for small businesses as it offers the most simplistic form of payment gateway integration.
One needs to think about using this mode as the customer data is stored by the service provider and might pose a security risk.
- Direct Post Method: This method allows the customers to complete the payment procedures without leaving the host site. The data for the same is picked by the payment gateway rather than the site’s server. In terms of such transactions, PCI compliance is not needed. It is to be noted that this process might not be the most secure. It is recommended for businesses of all sizes and types.
- Non-hosted method: This mode of payment is entirely handled by the merchant and can be customized according to the needs of the site. It allows one full access and control of the transactional section. Such a kind of method demands PCI compliance and is suggested for big businesses that rely heavily on branding.
No matter what method you opt for, it is very important you to be mindful of the following aspects:
- Pricing of the gateway is to appropriately take note of so that you understand how much or how little your expenditure and investment is.
- Merchant accounts can be considered as it provides business-related features and backups.
- It is extremely essential to note currency options.
- It is also essential to know if your product type is supported by the payment gateway vendor.
Therefore, with little care and consideration, you can avail the best payment gateway for your site.