Do you know that you need the Best Payment Method for an Online store to run your eCommerce business smoothly?
According to this recent study, most e-commerce will account for 20.4% of global retail sales by 2022, up from only 10% five years ago. In other words, e-commerce will be booming in the upcoming years.
However, to compete in this competitive ecommerce business, you need a fully secure and advanced payment gateway for a Magento ecommerce store.
Because running a profitable eCommerce business cannot survive without a good Payment gateway solution, but now the problem is how will you select the best payment gateway for an eCommerce store?
In this blog, I will explain 10 significant points you must consider while selecting the best payment gateway for a Magento ecommerce store.
Before we move on to the steps for choosing the best payment gateway for an eCommerce store, you need to carefully understand the fundamentals of payment gateway. So, let’s start from there.
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What is a Payment Gateway for an ECommerce Store?
A payment gateway is a mechanism or software that provides a payment transaction facility from a customer to your merchant bank account. This software can track the transaction record of every transaction’s success or failure and notify the customer and your business’s status.
As customers enter sensitive information such as their credit card, bank account and other financial details, it is essential to ensure the security of this information. A reliable payment gateway provides complete security without compromising on payment speed.
I hope this can give you a clear idea about Payment Gateway, now let’s drive into major factors that you should keep in mind before selecting the best Payment Gateway for a Magento ecommerce store or other ecommerce platforms.
10 Factors Best Payment Gateway For an eCommerce Store
Since payment is the most crucial part of your business, getting paid is essential to find the right one.
A secure, efficient and fast payment gateway increases customer confidence and keeps money flowing to your end. Consider the following essential factors when choosing a payment gateway for your business in India:
1. Supported Payment Sources
Online payments for many people only involve using credit or debit cards. However, the scope of these payments has expanded over time to include other payment sources such as internet banking, UPI and digital wallets.
With the right payment gateway, you can give your customers the flexibility to choose from different payment sources. Based on their preferred payment method, they are more likely to complete a purchase at your Magento or other eCommerce stores.
For e-commerce, choosing a payment gateway that supports the maximum number of payment sources is advisable.
2. Easy Integration Process
To select the best Payment Gateway for an eCommerce store, you need to check their integration process. And ask the following major questions to your payment gateway:
- Can you integrate it yourself?
- Need a professional developer to do it for you?
- Are your Payment Gateway mobile SDKs available?
- Is plugin support available?
If covered by the payment gateway provider, all these aspects will help you decide which one to choose.
3. Support Multiple Devices
Customers today use multiple devices to shop online. People can access your website and make purchases through their laptops, mobile phones or tablets. A flexible payment gateway should provide the same ease and access over multiple devices to ensure customers’ vantage for better engagement.
4. Hosted or Non-Hosted Platforms
You can find two types of payment gateways in the market. One is hosted, and the other is Non hosted.
A hosted payment gateway redirects your customers to a payment processor page where they enter their payment information. This type of Payment Gateway solution can reduce the risk on your end because sensitive information is not stored on your site, saving you the extra effort and expense of securing that information.
Unhosted payment gateways allow customers to enter payment information without leaving your website. This increases their convenience because they don’t have another step to complete.
When choosing a payment gateway, consider this aspect and its relationship to PCI-DSS compliance. Let’s discuss this in the following topic.
5. Payment Gateway’s Security of Payment
When you receive an online payment, you ask customers to enter their sensitive financial information, such as their card number and CVV.
As an online ecommerce store owner, it becomes your responsibility to handle this information adequately and keep it safe. Choosing a reliable payment gateway plays a key role here.
However, most payment gateways are PCI-DSS compliant. They also invest in fraud detection and screening technology to ensure the security of all financial transactions.
So, before choosing a payment gateway, ensure that you have double-checked the PCI DSS compliance status and other security measures before selecting a payment gateway.
Apart from that, you should also know that there is a need for PCI-DSS compliance and related processes to be followed for online business.
Anyway, if you have no idea how to check the Security aspects of any payment gateways, then I recommend Hire Magento developers in India. They have tremendous expertise and knowledge about how you can get the safest Payment Gateway solution for your business.
6. Transaction Limits
You may also come across payment gateways that set an upper limit on the transaction amount that can be processed in a particular month. While this limit may not be a problem for small businesses, it is no less an unexpected hurdle for companies that process a significant number of transactions or trade in high-value products.
There must be a reason behind setting these limits and increasing provisions as the business grows. The only point is that you should be aware of these limits (if any) while choosing the best payment gateway for an eCommerce store.
7. Support Multi-currency
If you are running an international business or want to expand it across national borders, choosing a payment gateway that only supports Indian currency doesn’t make sense. Sooner or later, you will have to invest your time and effort in selecting another payment gateway that supports international currencies.
It is of utmost importance for such a business to let your target customers pay in their currency while you get settled in your native currency. A payment gateway that allows this and handles the foreign currency exchange process will be your best bet.
8. Customer Support Services
Running an online store means that your target customers can shop from you 24/7. It also means that payment-related issues may arise at any time for which you need the active support of the payment gateway service provider.
When dealing with payment queries raised by your customers, your payment gateway provider should be available at all times and have a minimum turnaround time. This way, you can ensure that your customers have an overall satisfactory experience when dealing with your business.
Therefore, you should add this aspect as one of the key indicators in your checklist.
9. Settlements of Transaction
In addition to payment security, the speed of payment processing also affects final purchases. For example, if a customer is stuck making a payment for too long, they may get impatient and cancel the order. A good payment gateway ensures fast payment processing for consumers.
On the other hand, it is also essential for businesses to receive payments quickly. When choosing a payment gateway for your business, check the settlement period to ensure smooth cash flow. Quick payment settlement also helps you manage refunds and billing efficiently.
10. Consolidation of Payments
As a business owner, you would want to review a consolidated summary of all payments received to maintain a healthy cash flow. A reliable payment gateway provider understands this need and provides a merchant dashboard that contains all payment information.
This will help you better track and manage your cash flow while simplifying bookkeeping and accounting.
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The final countdown to choosing the best payment gateway for an eCommerce business.
Once you’ve narrowed down your options using the checklist above, it’s still half the battle won. Win this battle by going through the process of choosing a payment gateway one more time.
Do this to see if there is anything else to consider, how the Payment gateway integration will affect the customer experience, and more.
If this final check takes time, that’s okay. You would like to spend time choosing a payment gateway for an eCommerce business rather than having to change them one by one.
Choosing a payment gateway is crucial for your business. I hope this blog can help you select the Best for a Magento Ecommerce Store or other ecommerce platforms. But if you still have doubts, you can get help from an experienced Magento development Company like Pixlogix Infotech Pvt. Ltd.
Pixlogix Infotech Pvt. Ltd. will help you manage your business efficiently with the help of Magento. With their Magento development services, you can easily reach your goal and set up your full-fledged Magento ecommerce store in less time and effort.