Most of us have made a transaction using online payment mechanism at least once. The thing is, we never really care about it until some of us become online retailers and start wondering about the best payment gateway for our stores.
Normally people would checkout via online credit card transaction. Filling the form and get the goods, easy-peasy. However, online credit card transaction isn’t very safe and thus most shun the use of it. There must be a way to transfer money online without exposing your information. Enter credit card e-commerce enablers or Internet payment service providers. Basically, they provide both retailers and consumers a platform to process credit card purchase electronically. This is the payment gateway we have been talking about.
There are many payment gateways out there. Most people can name some of the most widely used such as PayPal or Amazon Payment, etc. Generally, most of the many payment systems in use can be categorized into 2 different types: hosted and integrated gateway.
With hosted platform, your customers are redirected to the payment processor’s website to complete the purchase. The good thing about this is that you don’t have to worry about anything regarding the security standard or safety procedure because the payment system providers take care of them all. Plus you can ask them about the methods and security compliance if you feel the need to. However, taking people off-site might result in some loss in sales due to the fact that some buyers simply don’t trust off-site payment procession.
Then we have integrated payment gateway. Essentially the same system but now directly works from your online store instead of another site. This way you provide your customers with a seamless buying experience, which more often than not is very important in getting sales. But great power comes great responsibility; now you have to pay attention to the security standards. Also, it doesn’t help that in order to integrate a payment gateway to your store successfully, you need to be very technological competent. One simple way to solve this is to hire a team to do it for you. Still, it is relatively harder to set up an integration payment system than a hosted one.
Next up, let’s talk about the cost. Most payment gateways have fee. Take PayPal for example, the cost per transaction ranges from 2.9% to 5.9% of the amount depending on the type of transaction plus a fee of $0.30. Might not sound very high if you only sell cheap products and have low sales but it is a totally different story if you own a big store that sells luxury goods with thousands of sales per year. Thus, picking a gateway with a reasonable cost can be helpful to your business in the long-term.
So now that you are more aware of payment gateway, we can finally answer the question: What would be the best one?
Generally speaking, there is no such thing as “the best payment gateway”. Merchants around the world pick their own payment solution depending on their funds, their needs and their targeted market. In other words, the best payment system for you is the one that best suits your business. Different strokes for different folks!
That’s the end of today blog. But before closing the tab, perhaps you can tell us about your choice of payment solution? Why did you choose it? How do you feel about your decision? Share with us in the comment section below.