Ankosoft Blog Post

Why Your Business Needs A Payment Gateway

Why Your Business Needs A Payment Gateway

Why Your Business Needs A Payment Gateway

Payment Gateways are merchant services provided by e-commerce application service providers which authorize credit card or direct payments. (e.g. Instamojo, Razorpay, PayTM etc.)

A bank can provide the payment gateway to its customers but it can also be provided by a specialized financial service provider as a separate service.

Payment gateways facilitate a payment transaction by the transfer of information between a payment portal (website, mobile phone, interactive voice response service) and the front end processor or acquiring bank.

Now this explains what a payment gateway actually is. Many business owners may still wonder why they should consider having one.

Reasons

Global Reach and Security

Online transactions are no doubt fast and super convenient. You are not restricted to a certain group of customers for a specific country. You can earn money from all over the world. However, with global reach there also often comes the possibility of credit/debit card fraud. Online transactions are mostly anonymous. How are you supposed to know if the buyer is actually who he/she claims to be? That's why e-commerce payment security is so crucial. You always need to be one step ahead to stop criminals from accessing or abusing sensitive credit card data.  Payment Gateways use special encryption and verification technologies to ensure that only legitimate transactions are securely transmitted.

Ease of use

Setting up a payment gateway is extremely easy, especially if you already have a merchant account (an account that allows businesses to accept payments by debit or credit cards). Also, there is very little maintenance required. Majority of e-commerce sites already come including this technology. Therefore, online shoppers are familiar with this process.

No third-party site

A payment gateway allows you to keep customers on your site while making their payment – from start to finish. They will not be redirected to a third-party site to complete their transaction.

Faster Settlements

Whenever using third-party payment methods, you may face some problems regarding settlements. It can take several days for a transaction to completely go through. On top of that, you may have to wait even longer for the transaction to be reflected in your account.

Payment Gateways on the other hand offer much faster settlements. This can be a major bonus if you are concerned about the cash flow. This can also be a positive thing when you have to refund money to the customer, so they won't have to wait long.

Things to consider before choosing a Payment Gateway

Costs

Usually there are three costs that come with payment gateways: setup fees, monthly fees, and transaction fees. If you decide to go for a separate payment gateway and merchant account, you may have some additional costs.

Security

To make sure your website and the sensitive financial information of your customers is safe, you should make sure that your payment gateway has point-to-point encryption and a gateway that meets level 1 PCI compliance standards.

Accepted Payment Methods

If you want to widen your sales net and make your business seem more trustworthy you should definitely choose a payment gateway that accepts a variety of different types of payment.

Studies show, that customers are more likely to abandon a transaction if their preferred payment method is not available.

Customers feel safer when they see trustworthy card logos (Visa, Master Card) displayed prominently in an online store.

So make sure you know your customers and which payment method they prefer.

Compatibility

Payment Gateways are third – party applications and have to be integrated in your current platform. It should be incorporated without causing too much trouble.

Customer Support

Being not able to receive payments because of a problem with the payment gateway can be a big problem for you and your business. 24/7 customer support is important. The e-commerce business never sleeps. For that reason you should make sure to choose a provider with 24/7 support facility.

I hope this little summary helped clearing all your doubts regarding Payment Gateways and why you should definitely get one, if you have a business.

Contact us at info@ankosoft.in or give us a call on: +91 9100188881 for a fast and satisfying payment gateway integration at a minimal cost.

www.ankosoft.in

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