E-commerce websites and mobile applications have increased enormously over many years, and so are payment gateway service providers. Unlike the old days, making an online payment for products and services on the site is not an overwhelming task for customers.
As far as research is concerned, 86 per cent of clients buy online deals using their credit or debit cards, and more than 60 per cent say that this is their favorite method of payment when shopping online.
The payment gateway is nothing but a mediator between your shopping cart and the credit card / debit card company. It mostly helps in the preparation of credit cards and guarantees that payment is made. It acts as an interface gateway through which transactions between the trader and the customer should therefore be possible.
Recognized payment gateways are Braintree, PayU, Amazon Payments, Stripe, PayPal, Skrill, just to give a few examples.
Payment gateways allow you to accept credit card payments online or in-store, which ensures that you can provide credit card processing online and offline, as well as in-store processing with Point of Sale (POS).
Some payment gateways are simply a way to purchase cards, with fees being paid to the merchant usually somewhere from 1.4 percent-3.5 percent. However, if you have a merchant account, the processing costs would be reduced to around exchange fees, which are usually about 0.10 percent-20 percent per transaction.
In the case of low-volume transactions, a simple payment gateway would be the most efficient alternative in the short term, as monthly income charges may be more than transaction fees. However, once the sales volume reaches the critical threshold, it becomes cheaper to pay a monthly fee for trader processing with interchange fees.
You may note that a lot of the best payment gateways offer both options, or some other advantage over the market. This could be anything from reduced transaction costs for other cards to direct integration into accounting software.
Which provider you choose will depend on your needs, but here we’re going to list what we think are the best payment gateways and the different service third parties they offer.
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Best PayPal Gateways-At a glance PayPal Stripe Payline Adyen Authorize.net PayPal(Image Credit: PayPal) 1. PayPal A reliable payment solution PayPal VISIT SITE PayPal Many buyers already have PayPal accounts Customization options Higher price With more than 220 million active accounts worldwide, PayPal is clearly the most widely used payment platform. Established in 1998 as Cofinity, it helps you to make and receive payments all over the world.
PayPal offers payment processing services to e-commerce companies, auction sites and other business organizations worldwide and allows you to accept credit cards like Amex and Visa. It also provides simple cart installation, ample configuration options, electronic billing and enables credit card payments over the phone.
PayPal is typically connected to the eBay online marketplace, but it is worth noting that by 2020 eBay will cease to be the main payment choice (as the company is transitioning to Adyen — while PayPal will still be available as an alternative payment service). In a statement made last year, eBay announced that it was working to give consumers more affordable rates.
Prices are affordable, with card processing being priced at 2.9 per cent per transaction, with no monthly fees, making them suitable for low-volume traders.
You can sign up for PayPal here with Stripe(Image Credit: Stripe) 2. Stripe A developer-first payment technology platform No price information CHECK AMAZON SINGAPORE See all prices (1 found) Built-in APIs and developer tools Mobile payments Tech understanding needed Stripe is yet another powerful payment platform designed for internet companies that claim to handle billions of dollars worth of transactions annually. The biggest difference between this company and many others is that it’s not an out-of-box solution. Instead, you are equipped with a number of versatile tools to configure your own payment processes.
Built for larger businesses, it offers a variety of APIs that allow you to build your own subscription services, on-demand marketplaces, or crowdfunding platforms. It supports a variety of programming languages, including Ruby, Python, PHP and Java.
In addition, Stripe supports more than a hundred currencies and offers features such as mobile payments, subscription billing and one-click checkout. Users also have access to a dashboard where they can imagine transactions. Clearly, then, this is a feature-rich payment gateway, while Stripe needs a lot more technical expertise from the consumer than other providers.
Stripe provides a special benefit to traders operating in Europe, as the processing charge for European cards is 1.4 per cent + 20 per transaction. The processing cost for non-European cards is 2.9 percent more normal, plus $0.30 per bill. In addition, for greater volume needs, there is a personalized package with volume discounts.
You can sign up for the Payline Strip here (Image Credit: Payline) 3. Payline A highly efficient payment provider Built-in security and fraud protection Mobile integration app Lower monthly fee Transaction costs not fully transparent Payline is a Pineapple Payments company headquartered in Chicago, Illinois. It provides solutions for companies ranging from start-ups to Fortune 500 companies, with a focus on payment experience.
Payline provides portal payment processing, and its platform applications are designed to incorporate over 175 online shopping carts. The company also offers mobile solutions designed to accept payments through mobile apps. The Payline payment processing portal also integrates with QuickBooks for ease of payroll management and business finance in general.
Prices for brick and mortar stores start at $10 a month, plus a 0.2 per cent charge and $0.10 per transaction. For online stores, the price starts at $20 a month, plus a transaction fee of 0.3 per cent and $0.20.
You can sign up for Payline here with Advertising Adyen(Image Credit: Adyen) 4. Adyen Out-of-the-box payment solution Works from one platform Used by major companies Comprehensive data insightsComplex pricing mechanism Adyen is used by companies such as Uber, Spotify, Microsoft and eBay to manage company and consumer transactions. The software allows you to accept any payment made to your business from a single platform, as well as to provide you with resources to manage risk and monitor performance.
Not only does Adyen support more than 250 payment methods and 150 global currencies, but it also allows you to analyze transaction data and take advantage of ‘data-rich insights into consumer behavior.’ For example, you can recognise customer behavior and patterns, allowing you to customize goods and services appropriately. There is also an advanced risk management platform that tests data to identify and counter fraud cases.
Processing fees differ by method of payment, but the company uses Interchange++ rates, with an annual transaction fee of $0.12 for most transactions. However, you’re going to need a merchant bank account to take advantage of interchange pricing.
You can sign up for Adyen here to Authorize.net (Image Credit: Authorize.net) 5. Authorize.net Versatile payment solution No price details Search AMAZON SINGAPORE See all rates (1 found) Support for credit cards and digital providers Wide range of currencies supported Built for any business Limited usage The main purpose of these solutions is to streamline the payment process, and Authorize.net (from Visa) does just that. Developed with businesses of all sizes in mind and providing a variety of options, the platform offers you tools for selling products and making purchases online or in-person at a shop.
With the solution, you can easily accept payments from websites and transfer funds to a merchant bank account. Supports all big credit cards, including Visa, MasterCard, American Express, Discover, Diner’s Club and JCB. In addition, the platform is compatible with digital payment platforms such as Apple Pay, PayPal and Visa Checkout.
Because the program will accommodate purchases made by consumers all over the world, the company must be licensed in the United States, the United Kingdom, Canada, Europe or Australia if you would like to use this service.
The best way to take advantage of Authorize.net is to have a vendor account, in which case plans start with the Payment Gateway Only package, which has no setup charge, a monthly gateway fee of $25, plus a transaction fee of $0.10 and a regular batch fee of $0.10. At the other end of the spectrum, enterprise solutions provide personalized pricing for larger business needs.
You can sign up for Authorize.net here Other payment gateways to consider Though we’ve listed some of the best merchant gateways, a number of others are worth considering. This is especially the case as many are available to integrate with existing ecommerce sites using nothing more than an easy-to-install plugin. Here, therefore, we will list some additional merchant gateways that are well worth considering, depending on the different needs of online businesses.
Worldpay is another popular payment gateway, with a range of integrations available on major e-commerce platforms. You may set up a paid subscription service or use a merchant account to take advantage of interchange fees on all transactions. However, Worldpay has undergone significant changes over the last few years, having been owned by at least two different companies, so it is worth asking what services are currently available and at what price.
Sagepay offers not only a merchant gateway, but also the ability to directly record all sales and transactions directly to your Sage accounting software. This makes it particularly useful for productivity purposes, not least because it ensures that you can see your expenses and profits in real time. However, while there are different plans available for Sagepay, it is best to have a merchant account to get the most out of the software, not least to reduce transaction fees in the first place.
2Checkout is another payment provider that is commonly used by online traders, not least because it is easy to set up subscriptions as well as one-off purchases. This makes it particularly useful for online businesses selling digital services, such as web hosting or web design firms. It is also widely available as a plugin for major e-commerce sites and can accommodate a wide variety of global currencies.
They offer complete payment solutions, such as setting up a platform, making connections and enabling security. For many small-scale vendors, the simplicity of a payment gateway is a decent way of enabling online business.
Here is a guide to the payment gateway requirement and the factors to be taken into account in choosing a payment gateway for your business.
What’s the payment gateway? Why do you need it for that?
The payment gateway is a digital service that provides credit card / debit card payments to online and traditional stores. It facilitates transactions on the Internet by offering transaction data and refers to what could be related to the actual intent of the deal.
The advantage of this mode of payment processing is that it allows companies to accept credit cards and certain other forms of payment. It connects traders with the bank’s account handling platform.
Without a payment gateway integration, clients will not be able to pay for the services or items they purchase online. It is essential to acknowledge electronic payments for any business Key Functionality of Payment Gateway Data encryption The web browser encodes the information. Around that point, the gateway sends transaction data to the payment processor used by the purchasing bank of the seller.
Submission of the request The processor authorizes the payment request relating to the retailer and the customer to the payment gateway. When the portal receives this response, it forwards it to the payment processing site / interface.
Delivery Address Check The payment gateways cross-check the delivery address listed in the database and provide it at the payment gateway. If you would like your order to be delivered at different addresses or if the shipping and billing address is different, you need to confirm. If the auto-filling option is not available or the address is new, the customer must fill in the details manually.
AVS checks In the case of virtual card transactions, AVS checks are carried out by the payment gateway. Address Verification Service (AVS) scans are used to combat cyber fraud. AVS failure happens when the user’s billing address does not match the user’s bank address.
Computer fingerprinting technique The computer fingerprinting technique is also used by payment gateways to enable transactions in the event of a physical purchase in the store. If the fingerprint of the card holder matches at the time of payment, then the payment will be accurate.
Velocity pattern analysis Payment gateways use velocity pattern analysis as a fraud detection technique. In the context of the Velocity Pattern Analysis, the repeated transaction patterns are checked within a fixed timeframe to prevent the recurrence of the same or to alert the owner of the card in that case.
Geo-location Geo-location monitoring is another feature of payment gateways that allows you to keep track of your transactions and report those that are faulty.
What’s the need for a merchant account? Are there alternatives for the same thing?
A merchant account is a kind of ledger that enables organizations to accept payments in a variety of ways. Since it is a digital account, it mostly involves transactions via debit or credit cards.
A merchant account shall be established between a retailer, a merchant bank and a payment processor for the payment of a credit card and additionally a debit card transaction. In the case of online shopping, a merchant account is virtual. It manages all digital transactions between merchants, commercial banks and payment processors. You can name it a merchant’s Internet account.
If you do not want to open a merchant account, you can select the following options: PayPal allows electronic payment solutions for traders who do not need a merchant account. It’s perfect for businesses hoping to start trading online quickly, efficiently and economically.
Credit card reader gadgets fitted to smartphones and iPads are available to sellers.
How do you pick the right payment gateway?
We know that it can be difficult to select the correct payment gateway. However, the following considerations might be helpful to you: how do you select the right payment gateway?
Security You need to test how safe the payment gateway you’re looking for is. System protection helps your clients not to fear that their financial data will stay safe when they buy from your shop. Also, check for PCI-consistency, as this is important when accepting credit cards online. Short rundown of payment gateway security layers: — Each payment gateway has an elevated level of encryption (SSL encryption 128 bit scrambled) to avoid a wide range of breaks.
– Digital Signature falls under the second protection layer. If your ID was received by the programmer, your records could be marked safe with an advanced signature.
– The function of Dynamic IPs comes after the digital signature. In any event, if your record is accessed from another IP address, access will be denied.
A few clients may not be aware of the diversion of the site to an external site in order to process their transactions securely. When choosing a payment gateway, make sure your platform has the right security features, and check for, for example, PCI-DSS accreditation that is hostile to extortion insurance.
Data Portability When you’ve been using a payment portal for quite some time, but you don’t find it’s easy to use. In such a case, if you want to leave your payment gateway, what happens to information about your existing customers. Is that going to be secure? Can you extract that piece of information? If you’re looking for a payment gateway that you want to incorporate into your e-commerce store, you need to test if it offers a data portability option.
Hosted vs. Integrated Payment Gateways — Hosted Payment Gateways direct the customers to the payment processor site to enable them to enter their payment data. Hosted gateways are anything but difficult to set up and good for new stores. However, they can reduce conversion rates if customers are not familiar with the processor.
– Integrated payment gateway interfaces with your eCommerce site using the API integration functionality. The biggest advantage is that customers will never have to leave the shop to enter payment data and complete orders.
When choosing a payment gateway for your shop, check your intent and pick which one of the gateways best fits your needs.
User Interface Customer does not like the difficulty of the web page. Often, most of our customers now use smartphone applications over desktops. So, select an ecommerce payment gateway that works well in both the smartphone and web interfaces.
Globally appropriate When nations are using the upside of the global economy, make sure your preferred payment gateway works globally. Your clients can originate from any part of the globe. And you’re supposed to make uniform payments.
Business model Under your business plan, take a look at your criteria and goals from the payment gateway in the near future. As per your business model, it will be easier for you to select the best payment gateway for your online store.
Future technology If you expect to be in business for more than 10 years at that point, link blockchain records such as Bitcoin and Ethereum to your online store, platform, or application.
Fees As pricing for payment handling and payment gateways is usually based on the type of transactions that a business conducts (online or a combination of virtual and, face to face) and even business deals, revenue consistency, transaction frequency, and the business sectors served; it is vital to compare how the business model concurs with the payment supplier, or the gateway fee structure. A few services that require set-up fees and agreements, or may charge transaction fees if the requirement and frequency of transactions that were common when services were created are not met. So be sure it fits your budget, and there’s no extreme contrast and other payment gateway offerings.
Customer support There are a few payment gateways that do not offer any technical assistance. In such circumstances, clients need to follow the manual instructions to fix the problem. To prevent these situations, test if the organization provides live support at any cost during normal working hours, so that you can fix any technical problems quickly.
Check if the manufacturer provides live technical assistance, at any rate during normal working hours, so that any specific problems can be resolved quickly.
Guarantee successful transactions As per the survey, more than 25 percent of clients will relinquish a purchase on the off chance that they are compelled to enroll for a record to finish it. On the off chance that your checkout method utilizes a third-party shopping cart with an enlistment procedure incorporated with the cart, guarantee that you can make it an optional factor that takes into account “guest” checkout. In like manner, your payment gateway should empower you to expel undesirable structure fields for simple checkout.
Big eCommerce businesses expect that online retailers can help transformations by 50 percent, by evacuating redundancies, for example, needing the client to enter both billing and shipping data, regardless of whether the postal locations are the equivalent. Multiple features to browse Payment gateway specialist co-ops offer a few features, contingent upon your business needs. For instance, if you have to provide your products and services around the globe, your payment gateway ought to have the option to acknowledge a few credit cards, platinum cards, and monetary standards, given various nations. Simple integration process With regards to playing out a financial procedure, it is essential to incorporate payment preparing into your ecommerce website. As a rule, the perfect solution is to pick a supplier that will send your client to the third-party website to enter credit card data. The specialist co-op sends it back to your online shop when the transaction is finished.