5 Tips to Selecting a Payment Gateway
A payment gateway is a service provided for merchants by an online service provider that allows processing of payments made from credit cards, direct payments, and other forms of digital payment. E-commerce business owners, at some point, inevitably need to set up a payment gateway to receive payments for services and products supplied. If you are reading this post, it means you are probably considering setting up a payment gateway for your business. The good thing is with a few guide tips, choosing the perfect payment gateway for your business does not have to be a dreaded experience. Here are some 5 tips to selecting a payment gateway you should know of.
- Payment Methods
It is essential to have a payment gateway that offers a variety of payment methods. If the payment methods are limited, this may lock out some customers, which will translate into the loss of opportunities. You also need to research to find out the payment methods most preferred by your customers. For instance, most of your buyers may be inclined to using credit cards for payments, but then you subscribe to a payment gateway that only facilitates direct payments. Such a mistake would lock out a lot of customers. To be on the safe, select a service that allows a variety of methods and more so supports the payment method preferred by your clients.
Forgive the slightly harsh tone, payment gateway companies are not charity organizations. They are in the business to make money, and so they charge some fees. Three main types of fees charged include; transaction fees, monthly subscriptions, and set up fees. These are the charges you need to consider before you choose your gateway. Remember cheap is not always the best. Some companies charge a high set up fee, but the transaction fees are low. Others allow free subscription, but the transaction fees are high. It would be advisable to subscribe to a service that has low-to-fair transaction fees.
- Company Reputation
There are tons of scam companies out there. It would be a painful amateur mistake if you chose a company that is known to be a scam not forgetting loses you would incur. Before settling for a particular company; take your time and conduct your research well. Find out if they have any cases of mishandling the clients’ funds and if so, stay away from such a company at all costs. Customer reviews are always the best in gauging what you are getting into. If you find a lot of bad reviews, do not even give the company a second thought.
- Mobile Payment
In this age and day, most people prefer to make transaction payments in the most convenient way. And mobile payment is one of the most reliable and convenient ways available. A company that allows people to transfer money using their mobile phones will have an edge over other companies that lack the option. Subscribing to a payment gateway company with this feature will increase your client base.
- Periodic Billing
This is a crucial feature especially if your business involves recurrent subscriptions. Such a feature saves you the burden of having to collect the payments manually. This service is also convenient for your customers because they will not forget to make the required payments and the money charged will be the correct amount.
When you follow these guidelines, you will realize that choosing a payment gateway is not a challenging task at all and in the end, you will select the perfect service for you and your customers. But some businesses are high-risk, and most payment gateway service providers shy away from such. For a business like CBD oil trade, for instance, you’d want to subscribe to a provider such as cbd payment gateway, who make it easy for dealers in this very popular recreational substance today.