eCommerce has been blooming since the arrival of the Internet. Lately, it has been observed that more than 20% of all global retail sales occurred on eCommerce platforms in 2022.
In 2023, we can easily predict that the trend will continue. People are going to shop online, and the main reason behind it would be an enhanced and convenient shopping experience. As an eCommerce platform allows customers to pay bills through multiple sources without risking their privacy, people feel less anxious while making a significant transaction. This becomes possible because of the eCommerce payment gateway.
If you own an eCommerce business and need a payment gateway to provide your customers with an efficient yet secure payment process option, you must consider getting one to go big in 2023. Throughout this blog, we will understand topics like eCommerce payment gateway, its significance to your business, and how to choose the right payment gateway service provider for your eCommerce store.
Consider that your customer wants to buy something online and doesn’t want to opt for “Cash on Delivery.” In such scenarios, the only logical thing to do is to make online payments using a credit or debit card. However, without safety standards, your customer may not like to put their card details online at any random website. So if you’re running an eCommerce business, you have to give them some sense of privacy and security to make them purchase items from your online store.
The eCommerce payment gateway provides that sense of security for your online store and makes the payment process more trustworthy among your customers. An eCommerce payment gateway is a software application designed to secure online transactions against eCommerce purchases.
If you own an eCommerce platform or are planning to start an eCommerce business, knowing how your customer transfers funds and how you get it may help. In this section, we are briefly discussing the working process of an eCommerce payment gateway.
● Your customer enters all the vital details, like card number, security number, etc., on the payment page of your website and proceeds to pay. Then, the payment gateway acts as a bridge and transfers the transaction details in an encrypted file from your website to the card payment network.
● The card payment network processes the payment against the eCommerce purchase and then returns the transaction data to the website. Due to the remarkable technological leap, this process takes only a few seconds to occur.
There are mainly 5 types of transactions that occur through the eCommerce Payment Gateway. They are –
There are many payment gateway services and payment gateway service providers for eCommerce platforms. Companies like Paypal, Amazon Payments, etc., offer seamless eCommerce payment gateway service integration for your business’s website and application.
Before fixating on one payment gateway service provider, consider these points and make a thoughtful decision.
Cost of Payment Gateway Service
Paid gateway service would only come for a fee. To provide a seamless payment process to your customers, you have to spend some extra bucks against transactions through the eCommerce payment gateway. This payment gateway service charges installation fees, a monthly rental, and their commission against every transaction. Due to this, you have to be very mindful of their fee structure and ensure that there are no hidden fees.
Availability of Merchant Account
When a customer makes a payment against any purchase, the funds go to the seller’s merchant account. If you already have a merchant account for your eCommerce business, you should continue with your old one. In case you don’t have one, you should thoroughly check if the payment gateway service provider has merchant account options in their service or not.
Multiple Payment Methods Support
This is one of the most important aspects to consider before choosing a payment gateway service provider for your eCommerce website and application. As multiple payment methods are standard in today’s eCommerce platforms, customers may expect your eCommerce store to accept payment through credit cards, net banking, etc. While choosing a payment gateway provider, you must thoroughly check what payment methods their payment gateway supports.
Adherence to Online Payment Standards
eCommerce giants like Amazon and eBay provide customers with seamless and secure payment methods; your customer may expect you to match the same standard. That’s why it becomes essential to understand that your payment gateway provider encompasses all the proper security standards. The safety of your payment gateway needs to be a top consideration when accepting payments online because you’re keeping sensitive financial information. Remember that various payment gateways have varying security requirements. Ensure that the gateway you use is level-1 PCI DSS compliant. Specific gateways provide fraud detection and other screening technologies to safeguard your business from unauthorized transactions.
Option to Customize
The scale of business says a lot about what sort of payment gateway your eCommerce business needs. Analyze your needs and check with the payment gateway service provider if you can customize the service plan. Sometimes, a new business would like to have a constant flow of funds to ensure proper operations. That’s why it is essential to have the option to customize when it comes to payment gateway service.
Ultimately, the exemplary payment gateway service for your business depends on the need of your eCommerce platform. You have to analyze and ask questions like “how many transactions occur on your eCommerce store,” “do you have a merchant account,” “Does integrating a payment gateway decrease the checkout process” etc. Once you can answer these questions, you will be good to go.
It was expected outcome and timely delivered. They are good at communication and client services. Project was smooth enough to develop, communication was excellent. They always ask too many question to reach the correct destination. Would like to hire them again for next Business.
The team manages the project transparently and keeps an open line of communication. In addition to going above and beyond, they're also able to relay technical information in layman's terms.
They offered a number of possibilities which I didn't expect while customizing a standard Shopware Theme.
The team is knowledgeable and always answered all my queries in the timely manner. I would recommend them for affordable and safe migration services.