With the increasing trend of online shopping, eCommerce businesses witnessed a great
boom. More and more, people nowadays step into this industry and also start their
ventures to generate higher revenue.
If you also seek to start your new venture in the eCommerce industry and develop your
online store, you need to understand the importance of seamless user experience. It
ensures the success of your business.
Further, numerous factors define the seamless user experience – using the right
payment gateway for eCommerce websites is one of those. You need to understand
that online payment is indeed a great aspect that you need to take into
during your eCommerce
If you are a merchant or a website owner, you need a platform to get paid online from
buyers who purchase your products online through your website. It works well for
customers and website owners and helps them do the transaction online hassle-free.
You may be seeking to get the basics of q- ecommerce, right? Take a look.Once buyers
purchase products and make payments with the use of a payment
gateway, eCommerce website owners can easily withdraw the overall amount either
directly through their bank account or can request a check. It’s something that
vary from organization to organization.
Meanwhile, it’s the truth that the payment gateway for eCommerce websites is always
the main target of hackers. So, it’s your responsibility to choose the right payment
gateway that ensures safe online transactions and helps you build trust among your
customers. Before we discuss here how to choose the right payment gateway for your
eCommerce website, let’s have a look at the basics.
What is a Payment Gateway and How Does It Work?
Payment gateway is all about service that includes various online payments. To make
an online transaction through a payment gateway, customers need to provide details
about their credit/debit cards when they purchase any products and services that are
generally transmitted to those stores and also finally to the bank.
Apart from this, a payment gateway also provides a notification related to the
approval of those payments. In case the payment doesn’t get approved, the total
amount will be canceled. After this, payment gets deducted from the account of
buyers and is transferred to the account of eCommerce store owners.
Now, the question is how does the payment gateway work?
Well, as we are aware of various important roles and operations of payment gateway.
When any customers make a payment, the payment goes through first the server of the
store and then gets transferred from the payment portal to the bank that issues the
payment and requests confirmation.
Now it depends on how the bank responds. It’s up to the bank to accept or reject that
payment authorization. After this, the payment gateway gets the response through
merchant services. The entire process takes only a couple of seconds to complete.
Tips to Choose the Right Payment Gateways for your eCommerce Website
After going through the importance of payment gateway for eCommerce website, you
should be curious to choose the best payment gateway for your online store. All you
need to do is to consider the following tips to choose the right payment gateways
for your eCommerce portal.
1. Choose a Payment Gateway that Accepts Multiple Payment Methods
So, when you select the right payment gateway for an eCommerce website, you need to
ensure that it provides the required support for various payment options that your
target audience will use. For instance, if we talk about Braintree, it’s one of the
well-known payment gateway systems that allow customers to use various credit and
debit cards to make an online payment.
Be it Mastercard, Visa, or UnionPay, the payment gateway accepts everything. Besides,
it also supports digital wallets and accepts payment even through PayPal. Stripe
works in the same way and accepts varieties of payment options. You need to opt with
multiple methods payment gateway that will help you to increase
conversion rate of your
When you search for the best payment gateway for a website, you should never forget
to look for whether it accepts payment through local payment methods. All you need
do is to keep a close eye on the changing preferences of customers.
2. Support of Country or Location
The next thing that you need to consider for choosing the payment gateway for your
online store is whether it supports the country or location where your business is
located. If you serve only those customers located in India, you need to choose one
of these payment gateways such as CCAvenue, Razorpay, Instamojo, Cashfree, and many
Moreover, if you serve clients globally, you need to use payment gateways that are
available to serve people across the world. PayPal is one of the popular payment
gateways that you can consider integrating into your eCommerce store.
3. Transaction Limit
The next crucial thing that you need to take into account while choosing a payment
gateway for eCommerce website is the transaction limit. You need to ensure that you
choose a payment gateway that matches the specific requirements of your business and
also your overall budget.
Apart from these things, the transaction limit of the service provider is another
crucial thing that you should never ignore. You need to understand that a different
payment gateway has different limits.
So, you need to make sure of the limit of the payment gateways and choose the right
one that includes the maximum value.
Meanwhile, several payment gateway providers also come with no limits in case users'
accounts are verified. Meanwhile, it allows users to transfer a maximum amount of up
to $60K in a single transaction.
4. Cost of Payment Gateway
Cost is another important factor that you need to consider for choosing the right
payment gateway. When you come across the right payment gateway, you need to get
complete details about their price and use.
Apart from transaction processing, your payment gateway service providers also expect
you to pay them for system installation, utilize their services per a particular
merchant account setup, and also charge a certain amount of fee for every
You need to understand the fact that different payment gateways have different
structures. Many payment gateway providers for small businesses offer their services
affordable costs. Therefore, you need to get details about their pricing structure
and if it
satisfies you and fits in your ecommerce
website budget, only then you should finalize
5. Holding Time
Though payment gateways approve every transaction without taking so much time, they
still it holds money for a couple of days before it settles with your account
finally. It is mainly for handling the process of charge-backs or also for refunds.
This holding period is not fixed and can vary from several days and depends upon the
service provider. In this case, you can choose either to get the payment immediately
or way, which further depends upon the overall cash flow.
6. Mobile Payment Support
With smartphones for shopping, the mobile payment trend witnessed immense growth. So,
if you are selecting a payment gateway for ecommerce website, you also need to keep
these things in your mind
You need to make a selection of the payment gateway that supports mobile payment. You
need to make sure that the payment gateway that you select lets customers make
payments from mobiles. It gives your customers greater flexibility for payment
regardless of the device they use. And it indeed plays a crucial role in improving
their shopping experience.
7. Support for Multiple Currencies
If you own a business to serve clients globally, then you should choose a payment
gateway that supports multiple currencies. It gives your customers the flexibility
of paying in their currency. Make sure you check the fees that involve transactions
for foreign currency.
Security is one of the crucial things that you should never forget to consider when
selecting the right payment gateway. Since your customers provide personal details
on your online store to make the transaction, it's your responsibility to use a
payment gateway that is highly secured.
You should know the important things that different payment gateways follow different
security standards. So, all you need to do is to choose the payment gateway that
includes level-1 PCI DSS compliance. There are several payment gateways available
with fraud detection and also many other useful tools to prevent your business from
The right payment gateway helps buyers in making safe and quick transactions for
every product they shop for online. It, on the other hand, helps businesses create
trust among them. To choose the right payment gateway for ecommerce website online
store, you can implement the above guides to make the best selection.
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