6 Important Factors You Must Consider When Choosing a Payment Gateway Provider for Your E-Commerce Business
According to Adobe Analytics, Black Friday e-commerce sales crossed the $9 billion mark this year. Year-round, this industry welcomes billions of dollars in digital transactions. Thus comes the need for a reliable payment gateway.
When you are looking for a payment gateway provider to help you run your e-commerce business, there are several important factors to consider. There are many things to think about when choosing a payment gateway provider that can help you sell your products online.
Here are six of the most important factors to consider when choosing a payment gateway provider for your e-commerce business.
#1 Security of Customer Data
The security of customer data is a crucial factor to consider when choosing a payment gateway provider. When customers input their credit card information, they are trusting you with their personal and financial information.
You need to make sure that you are using a secure system that encrypts all of your customer’s data so that it cannot be stolen by hackers. You also need to make sure that you have backup plans in place in case your data is compromised in any way.
When choosing a payment gateway provider, you need to consider how your customer data will be handled.
How will the company protect your customer’s personal information? What steps do they take to make sure that your customer’s financial information is not compromised? Do they adhere to strict security protocols? Do they offer encryption? These are all important questions to ask when choosing a payment gateway provider.
#2 Service Agreement Requirements
Payment gateway providers will have a variety of different service agreements, depending on the
type of business you are running. They can range from simple Terms of Service (ToS) to comprehensive contracts that cover everything from refunds to data protection.
You need to ensure that the payment gateway provider you choose provides a comprehensive and well-defined service agreement that covers all aspects of the relationship with the merchant.
In particular, be sure to check whether your payment gateway provider has:
A clear definition of what constitutes a breach of contract, and what actions they will take if it occurs
A clear definition of how any dispute will be resolved, including how parties may appeal decisions
An explanation of how fees are calculated and collected
#3 Payment Processing Fees
The payment processing fees charged by your gateway provider can vary greatly, depending on the type of business you run and the features you want to offer your customers.
The cost of the payment processing fee will be determined by several factors, including the payment method used and the volume of transactions processed. The more often you process payments, the less expensive it will be per transaction.
There are also payment gateways that allow zero fee processing. They accept credit and debit cards, and for processing payments, they don’t charge fees. There are also payment gateways that not only offer zero fee payment processing but also allow your customers to enjoy cash-back offers.
In a way, using these payment gateways allow you to offer something back to your customer for shopping on your platform using your selected payment gateway.
#4 Allows Transactions Through Mobile Banking
One of the biggest factors you must consider when choosing a payment gateway provider is whether or not it allows transactions through mobile banking. This is especially important if you’re selling products or services that are accessible from a mobile device.
If your business is an online retailer, you want to make sure your payment gateway is compatible with mobile devices. If it’s not, customers might be reluctant to shop on your site because they can’t make purchases while they’re away from their desktops.
Vantage Market Research claims that the global mobile banking industry is valued at around $700 million as of 2021. That value will cross the $1 billion mark in the next five years. Thus, you can expect millions of people to use mobile banking more frequently, which is why you must welcome a payment gateway that allows transactions through mobile banking.
#5 Easy to Integrate into Your E-Commerce Platform
One of the most important factors is whether or not the payment gateway integrates easily with your e-commerce platform. This is especially true if you are using a third-party platform such as Shopify or WooCommerce.
If the payment gateway provider offers this type of integration, it will be much easier for your customers to make purchases and pay for them using their preferred method of payment.
You want to be able to set up the software in a way that makes sense for your business, and it should not take too much time or effort.
#6 Good Customer Support
A good payment gateway provider will always be there for you. They should have a dedicated customer support team that can answer your questions and help you with any issues. This is the best way to make sure that you will be able to get quick assistance if anything goes wrong, which is vital for your business’s success.
As you can see, there are many factors to consider when choosing a payment gateway provider for your e-commerce business. If you’re still not sure who to choose, use the information in this article as a starting point, and do some research on your own. The best way to find out which provider is right for you is to take the time to find out what each one offers and what their strengths and weaknesses are.
According to SkyQuest, the global e-commerce market will be valued at over $58.74 trillion by 2028. In the next few years, more and more people will rely on e-commerce platforms for their daily necessities. Therefore, it’s only logical that you choose the best payment gateway provider to help you deal with this increasing number of transactions as well as provide security to each user’s data.