Last week we shared about the basics of social media marketing, but now is the time when we discuss about something which is really essential for your e-commerce venture. If you have decided to sell online, then you need a way to collect money for your products and services.
So, here’s an attempt to help you to get you through the process of selecting a suitable payment getaway for your e-commerce website. Below is a bit of information and basic insight about payment getaway.
First of all, we need to be clear about the terminology called payment gateway.
A Payment gateway is one of the most useful means of authorizing credit card or other forms of electronic payments for an e-commerce website. These payments can be made online via a website or at an actual brick and mortar retail establishment. Payment gateways protect sensitive information like credit card numbers and other account information by encrypting the data they transmit to merchants and payment processors. This helps your customers to do easy and convenient transaction and it is a safe and reliable option for your e-commerce venture.
There are some points which you need to remember while choosing your payment gateways. They are as follows
1. Get An Idea About How You Want The Checkout Process To Work.
All payment gateways do not function the same way. There are two types of Payment gateways and it is very important that you know the difference between both of them.
Hosted & Non-hosted Payment Gateways
A hosted gateway means that it will take the customer off of your store’s checkout page. Once the customer has paid, the customer will be redirected back to your store’s to finish the checkout process. The most popular hosted gateway is PayUMoney.
What if you do not want a customer to be directed off of your store? In that case, you will want to choose a non-hosted gateway. A non-hosted gateway allows your customers to enter credit card information directly on your checkout page.
The Process Of Choosing The Perfect Gateway
Well, when it comes to choosing between hosted and non-hosted gateways, it all actually comes down to your market and what kind of business you are doing. Many customers are willing to use a credit card while others may prefer the security of an online payment account such as PayPal.
2. Have An Insight About The Difference Between Merchant Account And Payment Gateways.
It is very important to know about the difference between the terminologies when it comes to e-commerce. A payment gateway can approve or decline the credit cards as well as online payment alternatives such as PayUMoney or CCAvenue accounts. People often get confused about the e-commerce term “payment gateway” with a similar term called, “merchant account.” A merchant account is where funds are held before being deposited into your bank account, the payment gateway’s role is simply to decline or approve a transaction which is done by your customer.
3. Documents Required To Avail Your Gateway.
To avail a payment gateway for your website, you need to provide a certain set of documents. The basic documents which you need to provide are KYC and Undertaking. KYC includes identification proof, address proof and bank statement. Although the list of required documents may vary from medium to medium. But you have to keep in mind and be very sure of your requirements while choosing the perfect gateway for your e-commerce website. You should also know that every type of registration needs a different set of documents according to the requirements.
4. You Have To Be Sure Of What Type Of Products You Want To Sell.
Always remember that whatever you do on your website will influence on the brand of your product. So, before you decide upon the products, you should do a complete market research as it gives you the idea about what you are getting into. There are a certain providers who don’t allow you to sell certain products. There are a certain products which cannot be easily sold online like e-cigarettes. For that, you will need a different type of payment gateways. There are some that allow you to sell physical products. So if you are selling ebooks or other digital content then you need to examine potential gateway providers for restrictions on products.
5. Look For A Mobile Responsive Option For Your Gateway.
Nowadays, people prefer shopping online through their mobiles. It might become a big turn off for your brand if the payment gateway site, to which the customer gets redirected to is not mobile responsive and it might result into a bad reputation for your brand. So, please be specific about having a mobile responsive payment gateway.
If your payment gateway is not mobile responsive then your customer might just leave your website without buying the product as the nonmobile responsive page might not give him a perfectly user-friendly experience. So, please ensure that your payment gateway partner offers you a solution which enables your customers to have the best possible user experience, giving them every reason to come back in the future irrespective of the device they use.
6. Secure Socket Layer Is A Must Have
Secure Socket Layer, which is majorly known as SSL, is a certificate which your e-commerce website needs to protect the personal and financial data of your customers. It is a certificate which ensures safety on your site for financial transactions.
An SSL certificate can be purchase by you with a little bit help from your web hosting provider. It costs a set amount which you pay per year and it is worth every penny you pay as it ensures the safety of the financial information of your customers.
7. Shopping Cart Is An Important aspect
Shopping cart is one of the most important aspects of your e-commerce website. With the help of shopping cart, the customer is able to select items which they desire to buy and the shopping cart automatically calculates the total cost inclusive of the shipping and handling charges and taxes. After that, when the customer places the order, the customer is taken to the check-out where he or she is asked to provide his/her payment information, which is then collected and managed by the gateway as described above.
8. What Should You Expect When It Comes To Charges
It is very important to educate yourself about the charges for having a payment gateway. There are a few common charges associated with a payment gateway such as setup and transaction fees. This varies from provider to provider, so you’ll need to do a proper research what each gateway charges. Some may only charge a transaction fee while others may charge a monthly on top of a transaction fee.
9. Take Care Of Security
In 2013, 60% of organization were exposed to actual or attempted payments frauds. So Before we even consider anything else we have to talk about security. Showing your potential customers and customers that you are serious about protecting their sensitive data is very important for your long term success. Every payment gateway provider has to meet minimum criteria to be certified by Visa and others. This level of security should be considered a starting point, and nothing more. But anyhow, We can’t stress and ask you to research well enough before considering any payment gateway providers. Thoroughly investigate security with each potential provider as it is solely for the reputation of your venture.
So, we hope we have guided you efficiently through the intricate details of payment gateway in order to help you to take your e-commerce venture to new heights.