If you are planning on running an online business, it is important that you take the time to think about which payment gateway you are going to use for your ecommerce shop. There are so many different payment gateway options available, and the one you end up selecting will have a huge overall impact on your business. It is crucial that you make a point of doing your research as much as possible.
Hosted Payment Gateways
You will find that hosted payment gateways redirect the customer to the payment service provider’s platform to input the payment details. PayPal is one very popular hosted payment gateway that a lot of people are familiar with. There are a lot of positive aspects to using this type of payment gateway, including the fact that the host network or off-site provider takes care of the PCI compliance and security issues so you don’t have to.
One of the drawbacks associated with hosted payment gateways is that you won’t have any control over UX. These payment solutions might fail to impress customers with slow and complicated user interfaces. You should really take the time to think about this option before deciding on it either way.
Integrated Payment Gateways
An integrated payment gateway connected your online store to the gateway services via an APL Payment Gateway provider, such as Authorize.net, which facilitates API calls to make direct payments through your store. There are quite a few benefits associated with this option, including a smooth and seamless payment experience for you and your customers. Since prospective buyers are not redirected outside of the store website, these gateways always offer a superior overall experience.
There are a few drawbacks of integrated payment gateways, including the fact that you will be completely responsible for your security. There is also all of the custom integration and maintenance work that you will need to do or hire someone else for.
Fees
It is also important that you understand all of the different types of fees that you are likely to encounter. There are usually monthly fees, transaction fees and setup fees. Some tools will require a membership fee that you will have to pay on a regular or semi-regular basis. Setup fees are typically pretty small, and they are usually a one-time expense that you won’t have to worry about again. It is important that you factor these fees into your budget though, as you will need to be prepared for them financially.
Currencies
If you are planning on primarily conducting business in the United States, you probably won’t need to worry about dealing with numerous types of currencies. If you are going to be running an international ecommerce store though, it is highly recommended that you choose a payment gateway that will make it possible for you to accept and handle all different currencies. You will need to make a point of choosing a provider that supports your customer base so you won’t experience any problems later on.
Recurring Billing
You will find that recurring billing is a feature that will allow you to set up an automatic billing cycle for customers who operate on a subscription basis. If people pay you a monthly subscription for something, you will certainly be interested in what this feature has to offer overall. Recurring billing is an absolute necessity for businesses with monthly payment plans, so you will have to keep that in mind. If you accept payments from people on a monthly basis, you will need to make sure that the payment gateway you choose offers this specific feature.
Mobile Payments
Over 60 percent of consumers currently believe that mobile payments will replace credit card purchases at some point. You will therefore have to make sure that your payment gateway is set up for these types of payments, because otherwise you could be missing out on a lot of business. If you are just starting up an online store, you will definitely want to make a point of setting it up so you can quickly and easily accept mobile payments from those who want to pay this way.
Conclusion
Overall, there are a lot of different things that you will need to consider when it comes to setting up an ecommerce store. When you take the time to actually keep these things in mind, you will be able to increase your chances of becoming successful. One of the main reasons that an online store doesn’t end up working very well for most people is because they don’t take the time to consider everything they need to. Whether it is starting fees or currencies, you should learn as much as possible about ecommerce and payment gateways so you can select the right one for your online business.