Online payment gateways have evolved so much in the last few years. Digital payment solutions have never been so convenient and easy for the users as it is now. But, these payment gateways have also been vulnerable to hackers or scammers. As such, payment processors could be the most vulnerable asset for companies.
In fact, a study in 2018 reported that some 90% of total login attempts to online retailers’ websites were illegitimate hacking attempts, which is the highest percentage for any sector. It is essential to know that your eCommerce payment gateways are secure and can withstand attacks immediately. You can also reduce load times with high-quality payment gateways.
An abandonment survey shows that abandonment rates are high due to poor quality gateways. The study found that 15% of people left the shopping cart to enjoy a better experience in-store, while 6 % of users left due to the lack of payment options. As such, digital payment gateway solutions have become one of the crucial aspect for the success of ecommerce companies.
What is a Digital Payment Gateway?
A digital payment gateway is an online merchant service that accepts credit cards for both eCommerce websites and offline stores. PayPal/Braintree and Stripe are some of the most popular payment gateways.
What is the difference between Payment Gateways vs. Processors?
A payment processor studies and sends transaction information, including pertinent information, to the issuing bank, such as a credit card or debit number that links to a banking account. On the other hand, Payment Gateways performs the same activities of gateway processors but also authorizes funds to be transferred between seller and buyer.
There are three main types of payment gateways.
The gateway redirects the customer to a PayPal payment page (for example) that handles the entire transaction (i.e. It becomes a “Redirect). Small businesses can use a redirect-gateway to integrate the convenience and security offered by PayPal. However, the process is less controlled for the merchant and gives customers an additional step.
- Checkout onsite, pay off-site
The checkout screen will load on your main site in this payment method, whereas the payment will be processed through a payment aggregator’s back end. When handling your payments, redirected payment gateways offer some benefits, such as simplicity. However, unlike the redirect payment method, you will have no control over the entire user experience via the payment gateway. The quality of the offsite gateway will determine your fate.
- On-site payments.
On-site payments are mostly used by large businesses where everything is entirely managed on their servers. Their system can handle the checkout and customer payment processing simultaneously.
How to choose the right payment gateway for your business?
Knowing what you can expect from a payment gateway helps you narrow down your focus on choosing the right payment gateway. Here are important factors that you should consider before opting for a payment gateway aggregator –
- Payment methods used by your customers.
It is always better to go for the payment gateways that your customers are using. If you combine your payment gateways, you’ll have fewer issues and security risks.
- Cost of the payment gateway.
Ecommerce fraud can have a huge impact on your overall business. This means that if the lower cost of a payment gateway is outweighed by the extra security concerns and fraud detection costs, it may not be worthwhile. Think about the fees associated with your payment gateway.
- Encryption technology
It is highly recommended to only work with PCI-compliant companies. The Payment Card Industry Data Security Standard is a set of standards designed to ensure security in the electronic world. Double-check the PCI compliance of any gateway before you press the “Go” button. These standards have been put in place to protect customers’ data and payment information.
- Payment processing features
Each business has its own distinct requirements in terms of payment processing, such as automating regular billing, instead of single-off payments, or having the capability to refunds, or tokenization. These are some aspects of payment processing that you should look at when choosing the ideal gateway.
Since now you have a better understanding of the importance and impact of a payment gateway on your sales and security, it is time to move on to the final step – Choosing the right payment gateway aggregator.
Keep your top priorities in mind when researching. To ensure security, check the PCI compliance of any potential payment solution. Also, always consider per-transaction costs to see how a gateway might impact your bottom line. This will allow you to select the best option for your company and provide customers with the security they need.
If you’re looking for the best payment gateway for startups, then OnionPay is your ideal choice. OnionPay is a PCI -DSS Level 1 compliant online payment gateway solution that eliminates the responsibility of regulatory compliance.
Regarded as one of the best payment integration companies in India, OnionPay allows you to collect and process payments. With more than 120 payment options, you can access multiple cashless payment methods, including credit card, debit, netbanking and UPI. Grow your business with OnionPay. Sign up now!