What online payment processor do I use?
Finding the right payment gateway is essential not only for your business but also for the security and satisfaction of your customers. So how do you go about choosing a service that makes perfect sense for your ecommerce business?
1. What’s Your Type of Business?
Is it a retail website? Is it a subscription-based or membership-based website? Is it a combination of both?
Retail websites require direct and manual payment options, while subscription-based services require automatic payment systems for recurring plans.
2. Hosted or Integrated?
Hosted payment gateways redirect the customer to the payment processor’s platform to input information and complete the online transaction.
Integrated payment gateways provide an API that you can program into your website so that customers don’t have to leave your site to complete their online shopping.
If you’re just starting out, it’s better to use a hosted payment platform that people know or are familiar with. The security and PCI compliance in this case is handled by the processor.
If you’re a well-established business with a regular inflow of customers and high revenue, it helps to invest in an integrated payment gateway and setting up data security and PCI compliance standards on your website.
3. The Efficiency of the Process
How many steps does it take from adding a product to the cart to actually completing payment and confirming purchase?
Customers are impatient, and they shop online mostly because of the convenience it provides. If you take that away from them, you won’t get any sales converted.
Choose a payment system that gets the transaction done in the lowest number of steps possible, but don’t sacrifice on the quality of service. Choose from reliable and familiar payment gateways.
4. How Much Are You Willing to Pay?
Almost all payment gateways charge fees; the question to ask is: “What’s the best deal on the market?”
There are 3 types of fees to consider:
- Per-transaction
- Monthly
- Purchasing cost
Some payment gateways are free, but charge higher per-transaction fees. Some have to be purchased, but have lower monthly charges. Some have both per-transaction and monthly fees.
Check your options out and decide what would be a good deal according to your budget and preferences.
Customers are generally looking for a good online shopping experience coupled with an easy and reliable payment system. Make sure you do your research and set your ecommerce business up with the perfect payment provider to ensure your customers’ satisfaction and in turn, yours too!