**3 Things to Consider When Choosing a Payment Gateway**
With a slew of payment types and service providers available today, online transactions for services and products should be quick and efficient for retailers. In the digital age, mobile apps and payment gateways are at the forefront of e-commerce, making them a necessary part of doing business.
**What is a Payment Gateway?**
Payment gateways send your debit and credit card transactions to a card processor for authorization. It’s the channel between the bank and the customer’s debit or credit card payment, the very last step in a transaction to ensure that you can securely charge your customers when they make purchases on your site. Payment gateways also act as the channel between other forms of online payments like eChecks and cryptocurrencies to/from the merchant’s processor.
In addition, payment gateways can help with site integration, PCI Compliance, encryption, payment info storage and recurring billing. Trying to find the best fit for your business can be a little overwhelming if you’re not familiar with the ins and outs of e-commerce, so here are three things to consider when choosing the right gateway for your growing business.
The primary concerns for most people who shop online are privacy and fraud prevention. Card verification and address verification systems are essential to protect customers’ sensitive data during transactions that are considered “card-not-present”. Gateway providers should most certainly have these tools in place to ensure safe and secure exchanges between merchants and their customers and provide support when/if needed. Furthermore, any business that processes and/or keeps payment data on behalf of a retailer is required to be PCI DSS (Payment Card Industry Data Security Standard) Compliant. Major payment card brands created PCI DSS to make sure that sensitive information is continuously being managed properly.
Whether a business is just budding or long since established, it needs a payment gateway to easily accommodate the fluctuations of rapidly increasing payments at any given time. Finding a gateway provider that does not have limited growth options will take one more hurdle off the track.
**3. Service Agreements and Fees, Fees, Fees**
In most cases, merchants discover that the fees required for services add up fairly quickly. There are setup fees, registration fees, transaction fees, payment processing fees, refund fees, transfer fees, batch fees, and even limit fees. It’s reassuring to know that a payment gateway will be transparent with their requirements, and flexible in their service agreements. Reading and re-reading is key before making any long-term commitments.
Choosing a payment gateway can be a daunting task, but with a little research and a few key points to address, you can find the right fit for your burgeoning business now and in the future.
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