5 Factors to Consider When Choosing a Payment Gateway Provider

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Choosing the right payment gateway provider can make a huge difference to your business. A payment gateway securely collects the card or third-party payment details and sends them through the card networks for processing. A few seconds later, information is relayed to the merchant whether a customers’ transaction has been declined or accepted.

Typically, with the introduction of 3D Secure, another security step is involved, protecting consumers, merchants and banks from fraud. For the most part, that is the extent to which the majority of customers experience payment gateways. As an online merchant, you want to keep the interaction time to a minimum, to ensure the payment process is smooth, seamless and secure.

As a retailer or any organisation that needs an online payment gateway, your choice could impact everything from customers experience on your website through to cashflow for online sales. Here are five crucial things to consider when selecting a payment gateway provider.

#1: Security

Fraud and so-called “friendly fraud” is everywhere.

Every organisation that accepts online payments is at risk from fraud and chargebacks, both of which harm revenue and profits. Acquirers will even close merchant accounts if merchants incur too much fraud or chargebacks from consumers, classing them as too high risk.

Making sure your payment gateway is secure is your top priority. At a minimum, it should be integrated with 3D Secure and comply with the PCI Data Security Standard (PCI DSS). Level 1 compliance indicates they’ve achieved the highest level of security possible and process over 6 million Visa transactions every year.

Other security features, such as address verification, duplication checks, CVV2, CVC2 and CSC security codes, should come as standard; helping merchants to protect their business and their customers too.

#2: Payout Time

Businesses that sell products incur all of the costs, all the risks, up-front. The last thing you want is to be waiting weeks or months for revenue to come through that is needed to pay for new products, goods, postage, salaries and other overheads.

Make sure you are clear on the terms and conditions. Check how often payouts are made? Whether they’re on a weekly or bi-weekly cycle and what, if anything, could delay the whole or part of the payout being made (e.g. a Bank Holiday, Chargeback requests etc.)? This aspect of your relationship with a payment provider will have an impact on your cashflow.

#3: Ease of Website Integration

Customers expect a smooth and fast checkout process.

Your payment gateway provider needs to facilitate this. Most are equipped to integrate with the majority of popular website and e-commerce platforms, including m-commerce stores; but make sure, before you sign, that integration is simple, or they can develop a custom-coded solution for your platform easily.

#4: Multi-currency, Multi-region and Platform

Do you know where your customers are?

Website analytics and shipping data should show the countries and regions people are coming from to buy your products. Is your payment gateway equipped to handle different currencies, payments from a wide range of regions and platforms? Does your payment gateway allow you to accept Alternative Payment Methods, such as Alipay in China and South East Asia?

Make it easy for your customers to pay how they feel most comfortable, which means working with a payment gateway that can handle payments across currencies, regions, platforms and alternative payment solutions.

#5: Value for Money

Don’t get stung with unfair and hidden charges. Take a close look at fees, percentages and any other charges that could apply. Work with a payment gateway provider who is transparent about fees and charges. Ask where they fees come from: Are they merchant account fees, do they come from the card schemes?

Itemise and ask around, read customer service and client reviews, to see how they’re rated compared to other payment gateways. Selecting the right payment gateway can have an immediate and positive impact on your customer’s experience, cashflow and profitability. We hope this helps you pick the right one and move forward on a positive note with a new payment gateway.

If you have any questions about choosing a payment gateway provider, please get in touch with our team. Call +44 (0)808 273 6866 or email [email protected]