There comes the most crucial 'Payment Gateway'. Point of Sale terminal is the end of a retail transaction, whereas Payment Gateway is the POS of Online transaction. Let's get into detail about Payment Gateway and How to choose the right one for your business. Let's not worry about how to pick the best one among the lot, but the right one. By finding the right one for you, you will also be getting the best one for you.
What is not a Payment Gateway?
A Merchant account. A Merchant account accepts payments made by credit cards and debit cards. It's where funds are put on hold before being deposited into your account. So, never confuse merchant account with a Payment Gateway. Merchant Account Providers are entirely a different company from the Payment Gateways. The confusion occurs only when the Merchant Account Providers have their own Payment Gateways. But, majority of companies use only 3rd party Payment Gateways.
What is a Payment Gateway?
It a virtual POS. A place where the payments for online businesses are authorized. Payment Gateway either accepts or declines a payment. It sounds simple, but it's very important to know the different types of Payment Gateways and how they function.
Hosted Payment Gateway
Hosted Payment Gateways redirects your customers to Payment Service Provider's page to fill their bank credentials. As soon as the payment is done, the customer is redirected back to your website and there ends the checkout formalities.
Or if you want to give your customers an even more seamless shopping experience, you may insert iFrame technology on checkout pages. Iframe captures the card details without storing it to your website, as Payment Service Provider hosts the form. Payment Gateway controls recurring payments, refunds and cancellations as well.
From card holder details to set up security, PSP takes care of the payment process and allows you to pin your logo to the hosted payment page. Your customer is well-assured that he is on the secured place. What's good about Hosted Payment Gateways is it's secured, simple and customisable. If you don't want too much responsibility to be shouldered, you may opt this method.
API / Non-Hosted Payment Gateways
A seamless process that takes place instantly in real-time. Non-hosted Payment Gateway is for merchants who want to give their customers a greater sense of confidence while checking-out. If you want to take full control over customers' checkout process, this is the right choice. Customers enter their card details on the checkout page of your website directly.
The best part is, the PCI DSS compliance is all under your control, and you are able to monitor payment process live. Also, it is more versatile that it allows you to integrate internet payment solution with any of your gadgets.
Payment Gateway Service Providers
Now that you know two major types of Payment Gateways, it's significant to know which service provider to choose. We already discussed how Merchant Account and Payment Gateways operate in two different ways. It's essential to know the difference to manage your business funds.
Before you jump to a conclusion, stay calm and think about some of the important factors that are involved in this process.
It's no surprise that Payment Gateway charges you for their service. But before choosing their service, it's important to know about the cost structure. Transaction Fees, Monthly Fees and Set up Fees differ from provider to provider. Educate yourself about the charges involved. This is something you should consider carefully before choosing.
Not all cards are accepted by all gateways. Before choosing one, know the type of debit cards and credit cards they accept. Also, if your business type needs to bill your customers on a monthly or regular basis, choose a gateway that supports recurring billing.
Security and Anti-fraud Features
It's good to anticipate the worst. Do a little research; by finding the right payment gateway that provides maximum security, you find a way to save yourself from fraudulent orders.
Above all, if you know your business well, it's very easy to choose the right payment gateway that supports it. Find the right one, and run your business your way.