A payment gateway is essential to an E-Commerce store. It allows your business to sell your products or services through your website. Payment gateways integrate the online payment processing and your merchant account. A payment gateway allows electronic payments to be processed between the online store or E-Commerce business, the customer’s credit card, and the bank issuing it.
Apart from an effective website, your payment gateway is essential to customer retention. Even if your website draws visitors and your content retains them, if your payment gateway is not meeting their needs, customers will opt to purchase with another vendor.
What should you look at when choosing a payment gateway for your business?
Considerations for choosing a payment gateway:
Payment Gateway Options for E-Commerce Websites
Hosted payment gateway:
Hosted gateways redirect online customers to the platform for payment processing. All payment information is thus directed to the processor who hosts this platform. This appeals to business owners because a merchant account may not be needed, nor any confidential data. The responsibility of managing data security falls on the provider. This includes standard regulatory compliance, as well as data security measures.
However, this format may also drive away customers as they need to “leave” your store. This may also enforce brand association of the gateway provider instead of reinforcing your own.
Payment gateway integrated with your business:
In this setup, the gateway connects with your E-Commerce website through the Application Program Interface or API provided by the gateway. The advantage with this system is that it does not direct the customers out of your E-Commerce store. It is integrated, creating a seamless experience for the customer. They input all their information directly and submit the order within the store.
If you are uncomfortable sharing details and information that could be perceived as confidential, including customer card data, then this is not the ideal option for you.
Jagruti Patel manages the application development division at Analytix Solutions which includes custom software, website and ecommerce site development. She has a diverse and cross cultural background ranging from working with startups to established brands across different continents.