The eCommerce sector is growing rapidly, with different merchants and consumers opting for convenient online solutions. As a merchant, you need to ensure the payment gateway option is ideal for maintaining your online presence while guaranteeing that consumers’ funds will be safe. The payment solution you choose needs to meet both the needs of your customers and the business. With the skyrocketing number of providers in the market, considering factors like pricing, transaction limits, and payment methods is key to selecting the correct gateway.
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Pricing Model
With payment processing involving different financial institutions, it attracts varied pricing models to cater for all partners involved. Most gateway solutions attract fees for using third-party tools to process and authorize the transaction. Overall, most transactions are usually billed based on the amount, location and type of a product. In understanding the fees, you can reach out to platforms like Fiserv Output Solutions for guidance.
The general rule is that the fees charged should not be costly to your business. The pricing structure needs to be transparent with no hidden fees. Some of the common fees you will encounter include:
Gateway Setup Fee
Merchants incur this fee when their account is set up to accept payments online. In most cases, the costs are charged when you first open the account, and it’s one-time.
Monthly Gateway Fee
The fee is charged for a payment gateway account. In most cases, the monthly gateway fee is prorated. The price usually varies depending on the volume of transactions.
Device Compatibility
Most shoppers use different devices to purchase items online, and the available payment solutions should support their choice. Some payment gateways do not work well on all devices and are characterized by challenges like bugs. Most importantly, shopping is accessible mainly through mobile platforms, which should be the biggest consideration under device compatibility. Before finalizing the solution, check to ensure it works on other operating systems and platforms.
Transaction Limits
Most gateway providers usually set a transaction limit, both the maximum and minimum. These values should be of interest to the merchant because they will impact how your customers interact with your product.
The limit should be convenient enough to ensure customers use a single gateway to settle their payments. Take note of both daily and monthly transaction limits. In most cases, the limit will be impacted by factors like regulation and location. Before selecting the gateway, check if there is an option to adjust the limit over time. Some service providers usually set limits on the cumulative amount of monthly payments accepted for the merchant account instead of each transaction.
Payment Methods
There are now more popular payment methods at the disposal of consumers. Selecting a payment option that supports multiple methods ranging from credit cards to other electronic options is ideal. Besides payment options, the solution should also help multi-currency which is primarily if the business serves global clients and should process payments at no additional fees. Mobile payment integration should also be an essential part of the payment option.
Security
Online fraud is a growing concern for most business owners. Most fraud activities are costly, and bad actors continue to exploit means to steal from the unsuspecting merchants. The payment gateway needs to guarantee fraud protection by having data encryption and 3D Secure features. The solution should also allow the installation of an end-to-end encryption system.
Endnote
Selecting the right payment gateway is central to the success of your eCommerce store. With a host of providers in the market, evaluate the potential product by considering factors like transaction limit, payment methods, and pricing.
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