The modus operandi of every business is different. Some are purely online; while others have physical stores and also provide an Omnichannel shopping experience to their customers. While some businesses have a small number of transactions on a monthly basis, whilst the others have thousands of transactions; It is, therefore, essential for every business to carefully understand all the requirements for their operations and then assess the variety of payment gateways to understand their features before choosing the one.
Here are the factors that should be considered while looking for a payment gateway aggregator:
- Types of Payment
In the current scenario, debit or credit card purchases are still most prevalent; however, other options are also becoming popular. It includes like PayPal, where only a password is required to enter to complete the transaction rather than entering billing, shipping and other details. However, such solution is usually provided by only the top-notch gateways providers. It is essential for you to offer such types of payment methods because it will help you cater to customer’s preferred way to pay.
Online retailing is beyond the geographical boundaries as it opens your business to global customers from a wide range of nations. If you want to go outside your geographic location, make sure you can process transactions from those markets as well. It is necessary to make sure that the payment gateway aggregator can help you process the currencies which you want to accept and they also help you connect to merchant banks where you would be keen in setting up a website locally.
- Hosting/non-hosting payment gateway
Your payment gateway aggregator can either be hosted or non-hosted:
A hosted gateway redirects your consumers away from your e-commerce website at the payment stage. Once the customer has made the payment, he/she will be redirected back to the store. Though they are easy to set up and integrate with, it reduces the customer experience. More often customers are wary when they are directed to these 3rd party hosted solutions, which could trim the sales volumes.
However, a non-hosted gateway doesn’t redirect your customers and keeps them on your website only to pay directly.
If you are keen to select a hosted solution, make sure that you choose the payment gateway aggregator that let you customize the look and feel of the third-party page to ensure that you retain the customer’s shopping experience and trust as well.
It is more likely to be a key factor to consider for most of the businesses. There are various types of fees that you might have to consider while choosing a payment gateway aggregator as they differ from one vendor to another.
- Set-up – It is an initial cost which will include the costing of setting up an integration.
- Merchant Discount Rate – It could be a small percentage charged by the vendor concerning each transaction.
- Flat transaction fee – It is a set transaction fee which is levied irrespective of scale.
- Security and Support – It is a fee which is charged by the vendor for providing technical support and fraud detection services.
- Other fees – There are some payment gateways aggregators which charge for refunds and chargeback fees. A chargeback happens when the customer disputes the transaction, and it becomes essential for the merchant to refund the value of the goods/services.
In addition to the above factors, check the support provided by the vendor as well. There are companies like MMADapps which can offer full customer support through different modes, like email or phone. Customer support is essential otherwise it can hinder your ability to process sales.