5 Things you must know before choosing payment gateway:

jordanmcclurejordanmcclure Posts: 15subscriber Bronze Level Member
1. How does it all happen - Different process involve in payment process

a Merchant
b Customers
c Payment Gateway
d Payment Processor

2. How much do you have to pay - How you charge by payment processing split in three parts

a One time setup Fee
b Transaction Deduction Rate (TDR) – Percentage of the total transaction value charged for each transaction.
c Maintenance charge – Operational costs charged typically on an annual basis.

3. Ensure a secure payments process - choosing a secure payment gateway is extremely important and this is a checklist that you could check to ensure that your choice tackles this all:

a SSL Certification
b PCI DSS Compliance & Certification
c 128-bit encryption and
d Two-factor authentication

4. Enrich your customer experience - you should choose a payment processor that satisfies the following criteria

a Establishes trust by keeping familiar elements: This includes use of familiar logos for payment methods such as Visa, MasterCard

b Integration via API: An integrated API ensures that the user stays on your platform and is not unnecessarily alarmed by being led away from a website they trust – your website!

c Pay with minimal effort: The experience provided by the payment gateway should be similar to the one provided by your website in terms of loading time and length of pages.

5. What metrics should you check - Some important metrics to compare various payment gateways include:

a. Transaction Success Rate: A transaction can fail due to issues arising at any of the players involved – issuing bank, acquiring bank, payment gateway or the customer. Thus, it is in your best interests to choose a payment gateway that minimises the failure rate. It usually ranges between 0.5% – 15% depending upon the mode of payment.

b. Time taken to set up payment gateway: It could range from a few minutes to days depending on the effort and expertise needed to integrate the payment gateway (API) to your website. Choosing one that offers complete online onboarding would save your time on any paperwork.

c. Time taken for settlement: It could range between 2 to 5 business days. Once the online transaction is complete, it is imperative that you receive the money in your bank account in the shortest amount of time. Thus, choose the payment gateway that offers the shortest settlement period.

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