Payment processing is the backbone of any eCommerce business. You need to accept payments, but which payment gateway should you use? This comprehensive guide will help you understand the difference between a payment gateway and eCommerce payment processing, how they work together and whatâs best for your business.
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Payment gateways are the first step in the payment process, while payment processors connect a seller to the bank. Payment gateways directly influence your businessâs bottom line, so itâs crucial to choose a good one.
If youâre starting as an eCommerce merchant, your best bet will likely be a reputable gateway offering easy integration, reliable customer support, and strong branding options. Here are some things to look for when choosing a payment gateway:
An eCommerce payment gateway is a technology that connects your online store with the payments processor to facilitate the processing of credit card transactions. The gateway encrypts sensitive information and streamlines the process of accepting online payments, increasing sales and improving customer satisfaction.
Now that youâve gotten a solid understanding of the various eCommerce payment processing options, itâs time to ask yourself: Which one is best for my business?
There are pros and cons to each option. For example, suppose your business sells physical goods (as opposed to digital products). In that case, an Amazon Payments account may be better suited for you because it allows you to accept payments through Amazon Checkout.Â
When choosing a payment gateway, you should consider the following:
An eCommerce ownerâs ability to get up and running quickly is vital for three main reasons:
For this reason, ease of use is a significant factor when choosing which eCommerce payment gateway will be right for you. Online sellers generally want a solution that they can set up within minutes or hours, not days or weeksâand if your company offers just that, youâll have the edge over other options on the market.
The ideal eCommerce payment processing solution will integrate with your existing website and fulfill your needs. This can be done using a single integration solution, which is the most efficient way for businesses to process payments on their websites.
With this type of solution, you can control your data security entirely because it is not stored in one centralized location. Instead, the data is held by each party separately, ensuring that no one person has access to all of it.Â
This means that if there were ever an issue with any one part of the payment processing cycle (for example, fraud prevention), only that particular company would be affected instead of every company involved in collecting and storing customer information together.
Itâs also beneficial because it allows you to work directly with whoever performs best at what they do rather than having them all lumped together into one large group where everyone shares responsibility equally. Still, none specialize specifically in any particular area due to a lack of resources or experience needed.
Infrastructure and maintenance costs are key factors when choosing a payment gateway. With many payment gateways, the cost of infrastructure and maintenance can be substantial, especially if you are processing higher volumes. This fee is in addition to any per-transaction or monthly payments that may apply.
A few examples include:
Data security and fraud protection are paramount. Itâs critical to choose a payment gateway that provides data security, fraud protection, and other necessary features. For example, if youâre selling products online, your payment provider needs to have a PCI-compliant platform to keep sensitive data safe from hackers.
Data security measures should also be taken when storing customersâ credit card information:
Regarding customer support, the importance of quality service cannot be overstated. If you experience any issues with your eCommerce solution, you want a company that can resolve them quickly and effectively. This begins with having an easy-to-use support system but also includes the:
If youâre thinking about your eCommerce payment processing options, itâs worth considering the benefits of using a single platform for all your needs.
Thankfully, thereâs an easier way: Using a single platform to handle everything from processing payments to offering customer service and even marketing your business online.
There are many options out there when it comes to choosing an eCommerce payment gateway or processor. But remember that you donât have to get stuck with one thatâs not right for your business. You can always switch to another solution if necessaryâafter all, itâs better than being stuck with a solution that doesnât meet all your needs and limits growth potential.
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