How To Choose The Right Payment Processing Solutions For Your Business
When the concept of eCommerce was introduced, there weren’t many options for businesses. Owners had to create websites by coding, a process of assigning a code to something for classification or identification. In the past, cybersecurity was scarce. Most importantly, there weren’t many payment gateways at that time. Thankfully, due to the developments in the industry, setting up payment processing solutions is no longer a challenge. You’ll find hundreds or even thousands of payment processing solutions on the market, each with unique features.
While this development is certainly admirable, at times it can feel as though there are far too many options. Hence, it’s become harder to choose one that aligns with your business. If you’re struggling to pick the right payment gateway for your platform, here are some pointers to help you out.
- Choose Between Hosted And Non-Hosted
There are two types of payment gateways: hosted and non-hosted. So, what’s the difference? If customers purchase from your platform with a hosted solution, they’re directed to the payment gateway’s website. On the other hand, with a non-hosted solution, the customer can enter their details without leaving your platform. Both of these two options have their own pros and cons.
For example, by using a hosted gateway, you can guarantee that the transaction would be secure. However, it also lengthens the process, which could inconvenience customers.
- Ensure The Security Of The Gateway
Since payment gateways receive a lot of banking information every day, it’s a favorite place for hackers. Because of this reason, it’s essential to ensure the payment gateway is as secure as possible. Gateways should have security measures in place, like firewalls, anti-virus, and more. They should also be Payment Card Industry Data Security Standard (PCI-DSS) compliant, so at minimum, you could know the site has followed the minimum requirements for security. An excellent example of this is Accredited Interchange.
- Consider The Holding Time
Holding time refers to the time it takes for money to deposit into your business account. This length of time ensures charge-backs and refunds are completed before transactions are completed and funds enter your account. This element differs from one payment gateway to another depending on different factors. Holding times can be as long as seven days, or there can be no holding time at all. Choose the payment gateway with a holding time that works perfectly with your cash flow.
- Pay Attention To The Transaction Limit
Some payment gateways set a limit on transactions clients can process per month. If you don’t like the idea of having restrictions, eliminate these options from your choices. Of course, if the purchase limit is high and your business isn’t brimming with customers at the moment, keeping the other gateways might still be an option.
- Look At Their Supported Payment Options
Digital payment, mobile payments, credit cards, debit cards, bank account, crypto—these are just a few examples of payment options available to customers. If you want to cater to all your customers’ needs, you’ll want a payment processing solution that supports as many options as possible. That way, customers can complete their purchases with ease.
- Check If They Support Recurring Payments
On top of the standard payment options, a payment processing solution that can support recurring payments, the ability to charge the same customer at different intervals, is a plus. With recurring payments you’d have the chance to charge regularly, either weekly, monthly, or yearly. It’s the payment system used when charging customers for memberships, subscriptions, or similar services. Otherwise, your customers would have to renew their ongoing subscription, which could be bothersome.
- Experience The Payment Processing First-Hand
Many payment gateways offer a way for clients to experience the payment process as if they were a buyer. If being able to see program from the other side is important to you, make sure you check out companies that list that as a benefit.
Was the payment process convenient? Are there too many steps involved? Do you think your customers would like it? These are some of the questions to ask yourself after seeing the experience yourself. You should be able to narrow down your choices that have an effective payment process.
- Take A Look At The Pricing And Fees
Each payment gateway charges fees in different ways. Some charge fees for every transaction, while some charge fees on a monthly basis. Your goal is to pick a payment processing solution with a suitable structure. The initial price should be affordable, given its features, and the fees must be reasonable. The ideal fee for each transaction is 2%. Any fee higher than that would cut into your revenue.
Conclusion
Despite being one of the components of your business, an excellent payment process can go a long way in retaining customers and building brand loyalty. Hence, choosing a payment processing solution should be a well-thought-out decision. With this article as a starting point, finding the right choice shouldn’t be much of a problem.
