5 Effective Payment Gateways for E-commerce

5 Effective Payment Gateways for E-commerce
5 Effective Payment Gateways for E-commerce

Online shopping has taken the retail world by storm and has created a niche for itself in every corner of the world. In fact, in India alone, the number of online shoppers is set to rise from the current 25 million to about 40 million by 2016.

While this is definitely a motivating factor for online businesses, it also means more work for them, in terms of providing increased security, ensuring faster payments and incorporating reliable payment methods. Payment Gateways are essentially super-fast online services with high reliability and backup measures in some of the most advanced data centres. They help to create a seamless process that may not even require a customer to interact directly with the gateway by forwarding data through shopping cart software and a secure SSL connection.  Having such payment gateways in place can provide additional support to efficient accounts payable processes , thus ensuring improved cash flow.  

Safe Payment Gateway

To ensure that the payment is made in a safe, secure manner, an Electronic Fund Transfer Point of Sale terminal should be used. This is an online process of keeping a tab on the following aspects.

  • Payment Validity
  • Encryption of transaction details
  • Ensuring delivery to correct address
  • Decryption of responses 

Effective Payment Gateway

An effective payment gateway is necessary for every online business. This is because it will help achieve three important things: 

  • Quick and hassle-free payments
  • Keep customer’s money and details safe and secure
  • Build and maintain customer trust 

Types of Payment Gateways 

Essentially, there are two types of Payment gateways: hosted and non-hosted. A hosted payment gateway will redirect a customer to a securely hosted payment page with a different URL. Once payment has been made, the customer will be redirected to your website and the order confirmed. This kind of gateway is more suitable for small to medium sized businesses that require a fast and economical way to securely accept card payments online. 

A non-hosted gateway allows customers to enter credit card information directly on a business website and is more popular amongst larger corporate businesses who have established themselves over a number of years. 

Popular Payment Gateways 

There are many payment gateways available for use by businesses of all sizes. The following are a few of the most trusted and preferred gateways used by a majority of online companies. 

Different Payment Gateways: 

  1. PayPal:

    One of the most preferred payment partners, PayPal, has been around since the late 1990s. In 2002, eBay collaborated with PayPal’s services for all of its transactions and it rapidly expanded to become the default method amongst online payment methods. After this move, PayPal grew in popularity all over the world and soon became the preferred payment method for online transactions.  PayPal charges a small percentage fee on transactions above a certain amount, or a flat fee on transactions under that same amount. The funds themselves are held in commercial banks and bear interest. For businesses, PayPal offers a discount fee rate and other incentives in order to induce more participation by ecommerce websites. The downside of using PayPal is that due to its size, it may become vulnerable to fraud and scams, resulting in chargebacks and bad transactions. Additionally, its buyer protection policies are not flexible, especially if you trade in physical goods.

  2. Google Wallet:

    Founded in 2006 as Google Checkout for Google’s response to PayPal, it merged in 2011 with Google Wallet and offers users the ability to use their mobile devices to pay for products at pre-agreed locations. It enables the automatic sale and transfer of funds through various Google processes and even uses Gmail attachments to send and receive money, making it extremely flexible. It provides a higher brand recall and gives the added advantage of charging a lower fee from certified non-profit organizations to process donations to their services online. It also provides discounts to merchants who experience higher traffic rates.

  3. Amazon Payments:

    Amazon is a brand name by itself and it owns and operates Amazon Payments gateway. It stresses on the importance of localized payment gateways for specific vendors, while also offering consumers the flexibility to make purchases from US-based websites using the information associated with their existing Amazon accounts. In many ways, it is similar to Google Checkout. It stores shipping and payment information in their secured systems, making purchases faster and more efficient, while eliminating the chances of wrongly entered data. Though there is no monthly fee, the only downside is that a high transaction fee is levied on transactions below $10.

  4. Authorize.Net:

    This gateway was established as early as 1996, and is used by as many as 350,000 online businesses. It is one of the oldest and most trustworthy gateways used today. However, it is functional only in North America and parts of Europe. It allows on-site payment and does not redirect your customer to a third party page. This gateway is one of the few that provides Live Chat and also has a low transaction fee starting at $0.10 per transaction. The only downside is that it charges a $99 set-up fee and a monthly fee of $20.

  5. Stripe:

    This is a fully integrated payment gateway that is very user friendly as well as merchant-friendly. While making payments, the customer does not need to be redirected to another page. Additionally, one of the best features of this gateway is that it is certified to PCI Service Provider Level 1, which is the most stringent level of certification, and it also allows you to enable two-factor authentication as an added level of security. It is suited for businesses of all sizes, with 139 currencies included. It has relatively high transaction fees and currently only operates in the US, UK and Canada.

Payment Gateways are a necessary must- have feature for any online business, whether it is a start-up or one that has been operating for years. Online shoppers put their trust and money in an online store, and as an online merchant, it is in your best interest to keep that safe. Therefore, choose wisely, as this is an important foundation on which to build your business. Taking the help of reliable and experienced eCommerce support providers is one way by which you can obtain the necessary support to bolster your efforts. 

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For information on how Invensis Technologies will deliver value to your business through eCommerce Support Services, please contact our team on US +1-302-261-9036; UK +44-203-411-0183; AUS +61-3-8820-5183; IND +91-80-4115-5233; or write to us at sales {at} invensis {dot} net.

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