The Best Approach to Finding a Payment Gateway Service Provider for Your Business
The backend processing of your orders is an often ignored and under-analyzed aspect of growing your e-commerce venture. Entrepreneurs spend a lot of time and resources perfecting their website design. However, they often tend to overlook their order processing setups. It will save a lot of money while investing a fraction of the busy time picking the correct international payment gateway, merchant processor, and linked bank accounts.
Simply put, a payment gateway is a method that sends your customers’ credit card information from your secure website to your encrypted merchant processor. You may consider it a terminal that captures, encodes, and sends data to your merchant account confidentially. When it comes to selecting a payment gateway, there are numerous options available.
Nonetheless, it is important to realize that the gateway you select must be compatible with your ecommerce payment system. Therefore, you should make a list of the different payment gateways that your ecommerce solution allows. Also, you need to contact each one to find out pricing and services.
All-In-One International Payment Gateway
International payment gateway like PayPal provides an all-in-one solution that includes both a payment gateway and a merchant processor. The upside is that you won’t have to keep track of two different accounts. However, the cost of the application is on the higher side of the spectrum.
For example, if you seek PayPal’s services, it may offer a flat rate based on your periodical sales volume. The more is sales volume, the less will be the charges levied on each transaction. It is a decent option because you are charged the same flat rate irrespective of using a credit card or the card entitlement. PayPal and other all-in-one providers are the only ones that do operate this way.
The payment gateway sends encoded billing data to the merchant processor. The merchant processor then transmits it to the credit card network. It is the responsibility of the credit card network to validate the customer’s credit card whether it covers the transaction. Then the payment gateway is duly informed of the development. The concerned ecommerce business is notified accordingly. If the transaction is accepted, the completed orders will be sent to your bank account by the merchant processor. A manual process is often required.
The merchant processor is the technology that connects your bank account to the payment gateway, clients’ credit card network, and above all, the bank account. It is a simple method of accepting credit cards online. It’s crucial to understand whether your payment gateway, merchant processor, bank account, and ecommerce system are compatible. You need to double-check that your merchant processor can connect to your payment gateway and bank account!
International Payment Gateway Selection
When selecting a payment gateway, be sure to check the following:
- Gateway Setup Fee – The majority of payment gateways will charge you an upfront setup fee for account setup.
- Monthly Gateway Fee – It is a recurring charge for the use of the concerned payment gateway.
- Per Transaction Cost – a fee is applied to each transaction. Refunds, declines, and voids are all live examples.
- Batch Price – If you opt to settle your transactions every day, you’ll be charged this fee daily.
- API Integration – One should make sure that the website’s shopping cart can connect to your preferred payment gateway.
Besides, you must ensure you get to know all of the fee structure and procedures when reviewing specific data points. Also, keep in mind that almost all of these service products are negotiable in case of processing a lot of orders. It’s absolutely worth a call to see if you can get the greatest deal! You can save hundreds of dollars per annum if you do it over time!
Merchant Processors Selection
- Setup Fee – Same as payment gateway
- Monthly Fee – the same as the one listed regarding payment gateway
- Transaction Fee – the same as mentioned in payment gateway selection
- Contract – the same as before.
- Qualified Discount Rate (QDR) – It is an intricate fee to keep track of. The qualified rate is only available for certain credit cards types.
- Non-Qualified Rate – You need to figure out which credit cards aren’t eligible for the discount factor such that you can make the calculations. This cost could be twice as high as your discount rate.
- Minimum Processing Fee – some merchant accounts have a monthly transaction threshold that must be met. If you do not meet this criterion, you will be charged an additional cost.
PayPal, for example, charges a proportionate percentage of the transaction, including a per-transaction fee typically around 3 percent based on volume. The majority of merchant processors charge between 2.2 and 2.65 percent. The optimal method for ecommerce credit card processing is frequently debated.
Salient Features of the Best Payment Gateway
- Integration: Before you consider any other factors; you must first determine whether or not a specific gateway can be connected to your shopping cart.
- Charges: It really is critical for all firms, but particularly for start-ups. One may search as to what the setup fees are. Also, one should not forget to inquire about transaction fees and any monthly subscription fees.
- Security: It is imperative that you exclusively work with Level 1 compliant payment service providers (PSP). It signifies that their networks and servers are safe to use with large data holding capacity.
- Reports: Every payment gateway will include reporting features that will allow you to track the transactions that occur on your website. The quality of tools and the reports generated will differ from one provider to the next.
- Support: A complete package is not always possible. Even the best payment gateway requires a strong support team. The essence is to find out which service providers can give the best support within your budget.
A payment gateway will be one of the most vital tools for keeping your business running. Therefore, it is obligatory on your part to make sure you choose the best possible option.
Visit STEER THROUGH at http://www.steerthrough.com for more information about the best payment gateway. The Company will provide you with adequate information to learn how your business can take advantage of the situation.