When it comes to creating an online store, there are many things to consider. One of the most important is how to accept online payments. For this, you need a payment gateway. In this article, we will explain what this tool is and how to choose the right one for your e-commerce.
What is a payment gateway?
A payment gateway is a service that allows merchants to accept online payments. Essentially, it acts as a secure intermediary between the customer, the customer's payment method and the merchant's bank.
When a customer makes an online purchase, the payment gateway processes the transaction and verifies that funds are available in the customer's account. If the transaction is successful, the payment gateway deposits the funds into the merchant's account. It's that simple.
How to choose a payment gateway for your business
There are many payment gateways available and choosing the right one can become an arduous task. Here are some things to consider:
- Rates
Fees are an important consideration when choosing a payment gateway. In general, gateways charge a per-transaction fee, which can be a percentage of the total purchase or a flat fee per transaction. Be sure to compare the fees of several gateways before making a decision.
Paying attention to this is important because it can significantly affect the profitability of your business. Since the rate can vary from one supplier to another, this can affect the total cost of your product or service to the customer.
However, there are other considerations. Some payment gateways may charge a one-time fee or setup fee to set up integration with your website. Others may charge a monthly fee to keep your account active.
Finally, some payment gateways may charge additional fees for specific functions, such as acceptance of certain payments (such as cryptocurrencies) or integration with specific e-commerce platforms.
Ultimately, it is important to evaluate whether the monthly fee for the service you choose is appropriate for the size of your business and the number of transactions you expect to process.
2. Safety
Security is a critical consideration when accepting online payments. Make sure the gateway you choose meets the standards of the industry in which you operate and uses advanced measures to protect transactions.
This is one of the most important aspects to consider when choosing this type of service. Confidential customer data, such as credit card information, must be protected to prevent any online fraud.
A proper payment gateway implements security measures such as data encryption and identity verification to ensure that the customer's payment information is protected throughout the transaction process, establishing trust in your website.
3. Payment options
Payment options are also important. You'll want a payment gateway that offers your customers a variety ranging from classic credit and debit cards, bank transfers and popular digital wallets to corner store deposits.
According to data from Expansión, during 2022, it was found that the diversity of payment options is one of the incentives to make purchases over the Internet. Although the most used payment methods were debit cards (69%) and credit cards (57%), followed by bank transfers (50%).
Offering a variety of payment options to your customers is essential to increase the chances of conversion on your e-commerce website. By allowing a variety of payment options, you are offering a more personalized and convenient shopping experience to your customers.
A point that in turn, improves customer satisfaction and helps reduce shopping cart abandonment rates due to lack of suitable payment options, fostering long-term loyalty.
4. Customer Support
Finally, you'll want to choose a payment gateway that offers reliable customer support. If something goes wrong with a transaction, you'll need help to fix the problem as quickly and easily as possible.
But regardless of any unpleasant situations, good technical support can offer numerous advantages for your online business. First of all, efficient and effective technical support can help you quickly resolve any problems or questions you may have, allowing you to provide a smooth and satisfying shopping experience for your customers.
Secondly, good technical support helps you to integrate and configure the payment gateway on your website effectively, (regardless of the fact that Buq does it for you), which can save you time and effort in the process.
Knowing and comparing the benefits that a payment gateway can offer you and your customers is essential for the operation of your E-commerce. Before choosing a gateway, be sure to consider all the factors mentioned above. With a little research, you can find the perfect payment gateway for your business.
