E-Commerce Payment Gateway Comparison by Certified Digital Marketing Agency, Absolute Digital
Updated: Oct 20, 2020
When you pay online, what happens to the money? How will the merchant receive it? And what fees are involved in between? In this post, we will address these questions and more about E-Commerce Payment Gateway!
A Payment Gateway is third party service provider that handles your online transactions for you. Payment gateways should be secure, convenient, reliable, and fast!
What is the process of online payment?
Online payments can be confusing. That is why we will break down the process of what happens when you make a payment online through e-commerce:
The customer adds your product on your e-commerce, and checks out in the shopping cart. He/She will be directed to "Payment Options" which should include a payment gateway (e.g. PayPal) and alternative payment methods such as credit card, and/or bank transfer.
The service provider routes the data using a secure and encrypted connection to the customer's bank and credit card company.
The customer's bank will approve/decline this transaction, which is then routed back to the service provider.
If approved, the service provider will then record this transaction, and send a confirmation to both the customer and merchant.
The goods or services will be delivered to the customer and the service provider will release the payment to the merchant.
The leading payment gateways in 2020 are:
There are various options for a merchant (you) to choose a suitable service provider to work with. Here are the most popular payment gateway service providers in 2020 and their details:
Fees Incurred as a Merchant
3.9% + $0.50 per transaction
Although costly, PayPal is considered one of the most reliable payment gateway options because of the versatility and convenience of it. Every payment gateway service provider has different fees so you can visit their website to find out more before deciding on which payment gateway you should use for your e-commerce.
Some important factors to consider before choosing the right payment gateway partner will be listed below, so do read on...
Where to put your payment options on your E-Commerce?
The placement of your e-commerce payment gateway is important. You want the consumers to feel secure, and convenient at the same time when checking out with your products or services on your e-commerce website.
Placement for your payment options and payment gateway should be in the order summary page where the customer can view total order, payment and shopping details, and payment options.
How to Choose the right E-Commerce Payment Gateway?
Choosing the right payment gateway can be difficult. Some factors you can consider are:
Security - Read about their encryption and secure routing features before deciding on which payment gateway to choose. A compromised payment gateway will make front-page headlines so do check out the news (if any) and online reviews from another merchant. Basically you should do your due diligence.
Convenience - As a merchant, you want the payment process to be as seamless as possible for your customers. Make sure it does not lag, is convenient, and your payment gateway offers as much variety as possible (VISA, MasterCard, AMEX, etc)
Versatility - offer ready-made plugins for Shopify, WooCommerce, and other e-commerce platforms. This option is a door of opportunity for those who use these platforms to create a website.
Speed - Making sure your payment gateway is working fast all the time is crucial in the overall performance and user experience for your customers. Choose a reliable payment gateway with a strong record of reliability and speed.
To conclude, you should choose the right payment gateway options for your brand based on the factors that you find most important. Different payment gateway service providers have different fees, benefits, processes, and compatibility. It is important to find 1 that suits your customer's profile and business needs and offer some alternative payment methods as possible.
Reviews of these payment gateways can also contribute to their reliability. Be sure to check them out before deciding which to use.
50% of online shoppers would cancel their purchase if their preferred method of payment was not available. - Magenest
The level of after-sales support should also be taken into consideration when working with a payment gateway service provider, especially if you intend to partner with them for the long-term.
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