How to Choose a Payment Gateway for eCommerce Website?

With the increasing trend of online shopping, eCommerce businesses witnessed a great boom. More and more, people nowadays step into this industry and also start their ventures to generate higher revenue.

If you also seek to start your new venture in the eCommerce industry and develop your online store, you need to understand the importance of seamless user experience. It ensures the success of your business.

Further, numerous factors define the seamless user experience – using the right payment gateway for eCommerce websites is one of those. You need to understand that online payment is indeed a great aspect that you need to take into consideration during your eCommerce website development.

If you are a merchant or a website owner, you need a platform to get paid online from buyers who purchase your products online through your website. It works well for both customers and website owners and helps them do the transaction online hassle-free.

You may be seeking to get the basics of q- ecommerce, right? Take a look.Once buyers purchase products and make payments with the use of a payment gateway, eCommerce website owners can easily withdraw the overall amount either directly through their bank account or can request a check. It’s something that tends to vary from organization to organization.

Meanwhile, it’s the truth that the payment gateway for eCommerce websites is always the main target of hackers. So, it’s your responsibility to choose the right payment gateway that ensures safe online transactions and helps you build trust among your customers. Before we discuss here how to choose the right payment gateway for your eCommerce website, let’s have a look at the basics.

What is a Payment Gateway and How Does It Work?

Payment gateway is all about service that includes various online payments. To make an online transaction through a payment gateway, customers need to provide details about their credit/debit cards when they purchase any products and services that are generally transmitted to those stores and also finally to the bank.

Apart from this, a payment gateway also provides a notification related to the approval of those payments. In case the payment doesn’t get approved, the total amount will be canceled. After this, payment gets deducted from the account of buyers and is transferred to the account of eCommerce store owners.

Now, the question is how does the payment gateway work?

Well, as we are aware of various important roles and operations of payment gateway. When any customers make a payment, the payment goes through first the server of the store and then gets transferred from the payment portal to the bank that issues the payment and requests confirmation.

Now it depends on how the bank responds. It’s up to the bank to accept or reject that payment authorization. After this, the payment gateway gets the response through merchant services. The entire process takes only a couple of seconds to complete.

Tips to Choose the Right Payment Gateways for your eCommerce Website

After going through the importance of payment gateway for eCommerce website, you should be curious to choose the best payment gateway for your online store. All you need to do is to consider the following tips to choose the right payment gateways for your eCommerce portal.

1. Choose a Payment Gateway that Accepts Multiple Payment Methods

So, when you select the right payment gateway for an eCommerce website, you need to ensure that it provides the required support for various payment options that your target audience will use. For instance, if we talk about Braintree, it’s one of the well-known payment gateway systems that allow customers to use various credit and debit cards to make an online payment.

Be it Mastercard, Visa, or UnionPay, the payment gateway accepts everything. Besides, it also supports digital wallets and accepts payment even through PayPal. Stripe also works in the same way and accepts varieties of payment options. You need to opt with multiple methods payment gateway that will help you to increase conversion rate of your ecommerce website.

When you search for the best payment gateway for a website, you should never forget to look for whether it accepts payment through local payment methods. All you need to do is to keep a close eye on the changing preferences of customers.

2. Support of Country or Location

The next thing that you need to consider for choosing the payment gateway for your online store is whether it supports the country or location where your business is located. If you serve only those customers located in India, you need to choose one of these payment gateways such as CCAvenue, Razorpay, Instamojo, Cashfree, and many others.

Moreover, if you serve clients globally, you need to use payment gateways that are available to serve people across the world. PayPal is one of the popular payment gateways that you can consider integrating into your eCommerce store.

3. Transaction Limit

The next crucial thing that you need to take into account while choosing a payment gateway for eCommerce website is the transaction limit. You need to ensure that you choose a payment gateway that matches the specific requirements of your business and also your overall budget.

Apart from these things, the transaction limit of the service provider is another crucial thing that you should never ignore. You need to understand that a different payment gateway has different limits.

So, you need to make sure of the limit of the payment gateways and choose the right one that includes the maximum value.

Meanwhile, several payment gateway providers also come with no limits in case users' accounts are verified. Meanwhile, it allows users to transfer a maximum amount of up to $60K in a single transaction.

4. Cost of Payment Gateway

Cost is another important factor that you need to consider for choosing the right payment gateway. When you come across the right payment gateway, you need to get complete details about their price and use.

Apart from transaction processing, your payment gateway service providers also expect you to pay them for system installation, utilize their services per a particular period, merchant account setup, and also charge a certain amount of fee for every transaction.

You need to understand the fact that different payment gateways have different pricing structures. Many payment gateway providers for small businesses offer their services at affordable costs. Therefore, you need to get details about their pricing structure and if it satisfies you and fits in your ecommerce website budget, only then you should finalize their integration.

5. Holding Time

Though payment gateways approve every transaction without taking so much time, they still it holds money for a couple of days before it settles with your account finally. It is mainly for handling the process of charge-backs or also for refunds.

This holding period is not fixed and can vary from several days and depends upon the service provider. In this case, you can choose either to get the payment immediately or way, which further depends upon the overall cash flow.

6. Mobile Payment Support

With smartphones for shopping, the mobile payment trend witnessed immense growth. So, if you are selecting a payment gateway for ecommerce website, you also need to keep these things in your mind

You need to make a selection of the payment gateway that supports mobile payment. You need to make sure that the payment gateway that you select lets customers make payments from mobiles. It gives your customers greater flexibility for payment regardless of the device they use. And it indeed plays a crucial role in improving their shopping experience.

7. Support for Multiple Currencies

If you own a business to serve clients globally, then you should choose a payment gateway that supports multiple currencies. It gives your customers the flexibility of paying in their currency. Make sure you check the fees that involve transactions for foreign currency.

8. Security

Security is one of the crucial things that you should never forget to consider when selecting the right payment gateway. Since your customers provide personal details on your online store to make the transaction, it's your responsibility to use a payment gateway that is highly secured.

You should know the important things that different payment gateways follow different security standards. So, all you need to do is to choose the payment gateway that includes level-1 PCI DSS compliance. There are several payment gateways available with fraud detection and also many other useful tools to prevent your business from unauthorized transactions.

Final Words

The right payment gateway helps buyers in making safe and quick transactions for every product they shop for online. It, on the other hand, helps businesses create trust among them. To choose the right payment gateway for ecommerce website online store, you can implement the above guides to make the best selection.