Much has been written about payment gateways, with more entrepreneurs understanding the significance of the digital markets. However, traditional brick and mortar stores owners are still unclear about how to scale up, or make their processes streamlined for their own, and also the customer’s benefit.
Payment gateways started as simple tools for easy credit card payments, although there are various aspects working together to ensure a successful payment for both, the merchants and their clients. Currently, the website payment gateway application has become one of the most important tools for all businesses, whether it is for a retail unit or a business to business transaction.
Modern or classic versions
Initially, payment gateways required all merchants to have a merchant account for all payments to be processed. The classic version of the gateways is referring to the older and mandatory requirement of having a merchant account in order for the fund to be transferred. Companies with a high volume of payments benefit from these types of gateways, and many still opt for the same. Due to a limited number of banks offering merchant accounts, classic payment gateway set up takes some time; they charge less than the modern version and are the best option when business owners are looking to scale up.
The modern version ensures that merchants can simply start accepting payments, even without the merchant account. Many online businesses still use this same model, and it is beneficial in the case of small businesses with a limited number of payments per month. This type of payment gateway charges a higher fee per transaction, as compared to the classic version.
Automatic billing support
A lot of businesses have recurrent payments multiple times a month. It may be for the actual products, procured at overseas locations, or it may simply be for office supplies. This means the merchants should set up automatic billing and recurrent payments to have one less thing to worry about.
The payment and purchase process on the website payment gateway should be check and verified, to understand the difficulties that customers may face during the actual checkout and payment process. Non-hosted, integrated systems work best for a seamless checkout and buying process for all customers.
Shopping cart abandonment rates
A good payment gateway will offer the merchants analytics that shows the numbers at every stage. While most companies are working significantly harder to ensure better website design and layout, most neglect the checkout process; this is where most customers have difficulties, either due to security negligence or due to sheer disregard for the final design of the checkout process. Research shows that large percentages, of up to 69.23 % of people abandon their cart just before the sale and checkout; that means 69 customers out of 100 customers never finish the purchase. Ensuring that the checkout process is seamless for the customers will ensure that the business has higher sales converts than before, increasing the company’s profitability over time.
Payment gateway integration is a complicated business and entrepreneurs must check and verify all aspects of the website payment gateway before going live with online payments.