Updated: Dec 12, 2019
Having multiple ways of accepting payments from customers is crucial to the success of any e-Commerce business. With that in mind, payment getaways are a modern convenience that allows your business to accept payments promptly, all while ensuring the security of your customer's money and details.
For that reason, selecting the right payment gateway is critical as it primarily affects your business. When implemented correctly, the right choice can create a reliable connection with loyal and new customers.
Given its importance, we're here to breakdown the critical elements you need to know when picking the right payment gateway for your business.
What is a Payment Gateway?
A payment gateway is what connects a customer's virtual shopping cart to their specific credit card company. This means that it is an online avenue that facilitates the processing of online payments such as PayPal, Stripe, Amazon Payments, Moneris, Google Wallet, and Apple Play.
Think of it as a digital truck that delivers payment straight from the customer's digital wallet to the money storage facility of your company.
Consider #1: Is the Payment Getaway Appropriate to Your Customers?
Take the time to study the needs of your target audience to see which type of payment method your target demographic tends to utilize commonly.
Many older generations, for example, avoid risks and tend to stick to traditional methods. Millennials, on the other hand, are more inclined to accept innovative payment getaways. With that in mind, it's essential to have options that can cater to all kinds of buyers.
Consider #2: Is the Payment Getaway Appropriate to Your Business?
There are two types of payment getaways wherein both primarily have the same goal, but what distinguishes them is the merchant account. Classic types have merchant accounts, which is a line of credit that approves online transactions and places the fund's into the company's account. On another note, contemporary getaways don't require merchant accounts on their end.
These new payment getaway is now highlighting convenience for customers as it enables your business to directly draw funds from their credit card and into your account.
In spite of the ease of transaction, some customers still prefer to stay loyal to tried and tested methods as it is believed to be a more secure process. Additionally, the drawback to modern getaways is its more substantial transaction fees which can contribute to a weaker conversion rate for your business.
Consider #3: Which Payment Modes and Currencies Do You Want to Support?
As mentioned above, choosing the right payment gateway should also mostly put above the needs of your customers. This involves supporting different currencies to expand your market to your overseas customers.
That means you also have to observe which countries your business is reaching so that you can widen your target audience and have the means the safely and adequately support the payment methods they are most comfortable with.
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