×

Finding the Best Payment Gateway for Your eCommerce Business Made Easy

Mohab

Finding the Best Payment Gateway for Your eCommerce Business Made Easy

Finding the Best Payment Gateway for Your eCommerce Business Made Easy

Running an eCommerce business is sure lucrative in a world that has gone online for quite some time now. But it works only if you deliver an awesome customer experience and receive your payments smoothly. Which is why, picking the right payment gateway is so important. It is a vital bridge connecting your consumer and your product. With a reliable, secure, and advanced gateway, making and receiving online payments can become a breeze. It will minimise business risks, ensure secure transactions, reduce instances of shopping cart abandonment, and provide a better brand experience overall.

In fact, it might interest you to know that more than 50% of online shoppers abandon eCommerce portals without completing their transactions. Reports have shown that the payment page experience plays a significant role in influencing your customers’ shopping journeys. About 17% of all online customers today don’t trust online shopping sites with credit card details. 6% of customers abandon their carts because their choice of payment card wasn’t available. About 4% leave your site because of technical glitches.

So, it is evident that choosing the best payment gateway for eCommerce transactions plays a significant role in determining profitability and brand experience. Read on to know how you can go about it.

What is a Payment Gateway and How Does it Work?

 Payment gateways aim at conducting simplified transactions while ensuring the security of sensitive customer information shared during this process. Different types of payment gateways use different security protocols to ensure customer data security. This includes encrypting details like bank and card numbers, one-time passwords, etc.

So, if you have an online business, it is vital that you know how a payment gateway works so that you can identify problems when something goes wrong. Here are the steps followed to complete a transaction through a payment gateway for eCommerce websites:

Step 1: A client or customer adds items to their cart, confirms their order, and clicks on Checkout.

Step 2: The eCommerce portal or website redirects them to the payment gateway page. Here, the customer must enter all the required data about the card they intend to pay with, the issuing bank details, etc. The payment gateway takes the customer directly to a secure 3D or issuing bank page, depending on the type of payment gateway, for transaction authorisation.

Step 3:  Once the transaction is authorised, the bank performs its checks (validity, available balance, etc.) and either approves or rejects the transaction. If the transaction fails, the customer receives an ‘error’ message and must try again from the start.

Step 4: Else, the issuing bank approves the payment and transfers the funds to the payment gateway, which in turn settles the amount with the seller, which is you.

Step 5: Once each of these steps has been completed, the customer receives a message of confirmation stating the order has been placed.

From these steps, you can clearly see that every monetary transaction on an eCommerce portal requires the exchange of sensitive data. Bank details and card information are highly personal and can have a deeply negative impact if leaked. Thus, all vendors and types of payment gateways for eCom payment processing must ensure complete security around personal user information.

Using a reliable and credible vendor for your payment gateway services is an effective way to ensure that data does not get leaked. Such vendors offer strong countermeasures, data insurance, and other features that ensure data is not leaked or that the damage is minimised should a leak ever happen.

Types of Payment Gateways You Can Choose From

Now that you know what is a payment gateway and how it works, ask yourself which type of gateway solution do you need for your business? There are basically two types of payment gateways to choose from:

  1. External or hosted payment gateways: These payment gateways are integrated with your primary eCommerce website. However, for every transaction, it redirects users to your payment gateway page to complete transactions. The primary benefit of this type of payment gateway is that you don’t need to worry about transaction safety. The payment gateway provider takes full responsibility for transaction security and platform compliance. External gateways are also easy to set up and don’t need customisation.
  1. Direct or integrated payment gateways: This type of payment gateway doesn’t require the customer to leave the host website. As the merchant, you are responsible for all the interactions that take place since they take place on your website. The greatest benefit of integrated payment gateways is that you can provide a much better and more personalised user experience. You have the option of tailoring your checkout process so that it fits your business requirements and strategy. This ensures a seamless experience and is ideal for mobile transactions.

6 Factors to Consider While Choosing Gateway Payment Solutions

Since there’s a lot that depends on your payment gateway, it’s critical to make the right choice. However, with so many options available, it could be hard to choose. Keeping the following factors in mind can make this process easier though.

  1. Availability of services: You need to know where most of your customer base is located. Depending on this, you need to choose a payment gateway that is available in the country where you are doing business and where your customers are. Almost every gateway provider has a list you can check against. You can also email them to confirm.
  2. Transaction fees: Every gateway provider levies charges on transactions based on several factors. This could be the payment method, type of card, number of transactions per month etc. Make sure you choose the right criteria, or else your transaction fees might exceed your monthly profit.
  3. Recurring payment system: Several businesses today use a subscription-based model to sell products and services. This could be like OTT platform subscriptions, membership plans, or rented furniture. If you are in the subscription business, you need a payment gateway that enables repeated payments. This means your customers won’t have to make manual payments every time a payment cycle ends. A few payment gateway providers also offer advanced features that let customers upgrade plans easily, pause payments, or add new subscriptions. Before you finalise a provider, make sure they have all the services you will need.
  4. Miscellaneous fees and charges: Another key factor that you need to consider is the accumulation of non-transaction fees that gateways might charge. These could be fees for setting up your account, maintenance charges, deposit or withdrawal charges, fees for chargebacks, and more. If you are just starting and sales are not that high, these fees could bring down profitability significantly.
  5. Customer payment mode options: As an online merchant, you need to ensure that completing a transaction is as easy as possible for your customers. For this, you need a payment gateway for eCommerce that accepts payments from the maximum possible card processors and issuers as well as all types of mobile wallets. Having limited options while wanting to make payments could drive your customers away.
  6. Payment security: In case of online business platforms, fraud is a real concern. Several online shoppers are concerned that their data isn’t safe on eCommerce platforms. There are several regulations in place such as the PCI DSS (Payment Card Industry Data Security Standard) system that gateway providers must comply with. Make sure you choose a vendor that meets these standards.

Choose Payment Gateways that Secure Customer Information

The best payment gateways ensure that your data is always safe. Here is a look at some of the fundamental implementations and protocols that a payment gateway follows to provide data security:

  • Every online data transaction going through a payment gateway is conducted using an HTTPS address. The S stands for ‘secure’ and sets it apart from the average HTTP address. The transaction passes through this secure channel.
  • Due to the # function, payment gateway systems generally use signed requests from the seller for validating the transaction request. This request is in the form of a secret code word known only to the payment gateway and the merchant.
  • To ensure the payment page is secure as a result of this process, the requesting server’s IP is first verified, ensuring it detects any dangerous activity.
  • VPA or Virtual Payer Authentication is currently being backed by issuers, payment gateways and acquirers, so that the payment process is even more secure. VPA is implemented in compliance with the 3D secure protocol. It provides an additional security layer and gives online sellers and buyers easier authentication of the opposite party.

Select the Right Payment Gateway and Enjoy these Benefits

There’s more than one benefit of using the right payment gateway for your online business.

  • PCI-DSS Wallet: Compliance with PCI-DSS ensures adequate security for users to securely save personal data in the gateway or portal for easier recurring payments. This is how you can save multiple cards, UPI IDs, and mobile wallet information on a payment page.
  • White-Label Wallet: Certain types of payment gateways enable users to carry out digital transactions using mobile wallets and applications. This is among the most popular current trends as it allows users to complete multiple transactions without any hassle or friction. Money from the mobile wallet can be brought to the website and then used to complete transactions on the seller’s platform.
  • Fraud Screening Tools: Several payment gateway systems offer you fraud screening functionalities and tools to mitigate the risk of data loss. This includes the CCV, CVV and AVS numbers, among others. Providing these additional layers of security ensures that no one can carry out transactions using the card details saved on your page.

The primary focus of payment gateway systems is to create secure paths between merchants and customers and facilitate secure payments. It mandates the authentication of both parties from their respective banks.

The key benefit of a payment gateway for eCommerce website is that millions of users can use a single gateway simultaneously. This makes it possible for businesses to buy or sell products or services around the clock.

So, when looking for payment gateways for your business, keep this guide handy. With the growing level of competition in the eCommerce space, let your payment gateway solution be the differentiator. Partner with the right provider to improve customer experience and drive brand loyalty.

Abdulaziz Al Jouf: The Payment Orchestrator of the Middle East

June, 2022: Abdulaziz Fahad Al Jouf is a Saudi entrepreneur and the founder and CEO of PayTabs, a revolutionary payment processing firm that he founded in Saudi Arabia in January 2014. Abdulaziz founded PayTabs after gaining extensive experience in founding previous e-commerce businesses such as SaleTab and Extabs.

His team refers to him as AA, and he is a dynamic, passionate, focused, and hands-on natural leader who is fiercely supportive of his team’s personal growth and development. He believes in giving back to the community, and he does it through mentoring emerging businesses in the area. He admits to being a risk taker who is always looking for new possibilities and making the most of them. He sees failure as a lesson in which he may gain vital experience rather than a failure.

View full media release

5 Freelancing Mistakes To Avoid

5 Freelancing Mistakes To Avoid

Have you struck out on your own and become a freelancer? There are more people than ever before working for themselves, thanks to the pandemic and a real rethinking of work should be. As such, there are new freelancers out there such as yourself that may be making common mistakes. Here are some of the mistakes you should be avoiding as a freelancer, and how to do so.

1- Starting Off Without Savings

One of the first things you should have in place as a freelancer is savings. When you’re working for yourself, you won’t have the security of an employer paying your wages for you, on time every month. If you have a dry spell, you need to be able to cover your expenses. So many freelancers start out without having that in place.

As a freelancer, it’s advised that you should have around three to six month’s worth of funds saved up and ready to use, should you need to. If you’ve already started and haven’t got those funds, you can start saving now as the sooner you start, the better. As you’re most likely working on your own, you’ll have small overhead costs so you should be able to do this.

2- Going With The First Customers You See

As you’re a freelancer now, it’s so easy to start taking on any work you can get. After all, you don’t want to go a day or week without work coming in, so it’s tempting to take work even if it’s not your forte. That’s a mistake for new freelancers though, as it dilutes your work, and you’ll likely be taking on work you’re not enthusiastic about.

If you do need to keep work coming in you can take the first client you see, but you shouldn’t make it a habit. You should look for clients whose interests and values align with your own.

3- Not Charging Enough

This is is such a common mistake that so many freelancers make. As you’re brand new to the business, you feel as though you should charge less so you can get those customers. However, as the saying goes, if you pay peanuts, you get monkeys. Some customers may even avoid you, as they’ll feel those low prices are suspicious.

Do your research, and find out what your work is worth. “It’s so important not to underprice yourself” says Anna Stevens, a freelance writer at OXEssays and Revieweal. “Good customers will understand the importance of paying for good work.”

4- Not Being Strict On Payments

Another common issue freelancers have is getting payments on time. It’s so common for invoices to be sent out, and you’ll be waiting for payment weeks or even months later. That means that you have to keep chasing those payments up, which takes precious time.

There are ways you can get around this. Putting payment time frames into your invoices is one way of getting paid on time. Using an online payment gateway like Paytabs is another, as all payments can be handled on one platform. Ensure you’re strict about getting payment on time, so you don’t miss out.

5- Not Managing Your Time Well

Now you’re a freelancer, you’re the only person responsible for the way you manage your time. As such, time is very much money, and you need to ensure that you’re managing your time correctly. If you have periods of time where you’re not actively working on projects, then that will affect your bottom line.

“There are lots of ways that you can manage your time as a freelancer” says Adrian Savidan, a business blogger with Assignment Service and Stateofwriting. “You’ll need to find the method that works best for you.” For example, only accept realistic deadlines, and ensure that you take breaks so you don’t burn out as you’re working.

These are some of the most common mistakes that new freelancers are making right now. As a newcomer to this way of working, use the advice here to take care of yourself, and ensure that you get the most out of the work you do. Avoid these mistakes and you’ll be ready to rise to the top.

Madeline MillerMadeline Miller
Madeline Miller is a writer with Education Essay and Essay Help. where she covers freelancing and time management. She’s also a blogger for Big Assignments.

Which One is Better - Omnichannel or Multichannel Transactions?

Which One is Better - Omnichannel or Multichannel Transactions?
Customer experience in 2022 has drastically changed from what it was just a decade ago. People are now buying their favourite products directly from the store, through their smartphones, from their laptops, and even with the help of voice assistants. Basically, there is more than one channel for selling products as well as accepting payments from the customer. Which brings us to the concept of omnichannel and multichannel transactions.

In the world of eCommerce, multichannel and omnichannel are two buzzwords that are used a lot, and often synonymously. While both these methods have the basic principle of using multiple channels to engage with customers, there is a key difference between them. They are both different strategies for marketing products and communicating with customers.

But before we dive into omnichannel vs multichannel, and debate on which one is better, it is important to understand what these are and what they represent at their core.

Multichannel Transactions

Simply put, multichannel transactions give your customers the ability to pay for something in different ways. For instance, a person can walk into the store, choose a pair of shoes and pay for it through their credit card at the counter. Alternatively, they can open the website of the store, order the same shoes and pay for them digitally. They can even hop onto an eCommerce marketplace to buy the same shoes and pay cash on delivery when the order arrives.

Omnichannel Transactions

One thing that is lacking in a multichannel transaction system is the integration among channels. And that is the problem that an omnichannel system solves. Consider the above example. Imagine that the user orders a pair of your shoes from an eCommerce marketplace. Upon receiving, they don’t like the fit or has some other issues with the shoes and wants to return them. In an omnichannel transaction setting, the customer can simply walk to their nearest store with the shoes, show the cashier the order invoice, and either return the shoes or get a replacement pair.

This seamless integration among different channels enhances the shopping experience of the customer and offers them easy buy, pay, and return options.

Omnichannel vs Multichannel Transactions

There are a few main differences to consider while choosing between omnichannel and multichannel systems. These differences revolve around the purpose and aim of these techniques.

● Customer Focused vs Channel Focused

A key difference between omnichannel and multichannel transactions is their primary focus. While omnichannel transactions aim at providing a seamless experience to customers, multichannel transactions aim at providing different methods for a customer to pay.

Multichannel transactions provide several options to every customer when it comes to paying for something. Be it online, credit card, debit card, cash, digital wallets, or something else. The focus is to retain the customer and ensure that they don’t abandon a deal due to lack of payment options.

Omnichannel, on the other hand, is more focused on customers and how they can engage better with your business. It enables customers to move from one channel to another without any kind of friction. The focus is on the customer and ensuring that there is no break in their experience. This way, if a customer buys something online but wants to return it in person, they won’t face any issues due to a change in the channel or the payment mode.

● Customer Experience vs Customer Engagement

One of the most fundamental differences between both omnichannel and multichannel is that, while an omnichannel transaction is done for improving customer experience, a multichannel transaction is done for increasing customer engagement.

Multichannel transactions try to reach out to as many potential leads as possible to try to convert them into customers. It employs the use of different payment modes, be it digital or traditional, to make sure that more and more people can do business.

On the other hand, omnichannel transaction delivers a consistent experience to customers who already know about the business and have engaged with it on previous occasions. This form of transaction won’t care about whether the customer bought the shoes from a store, website, or on a sale online. It will rather focus on providing a superior customer experience by capturing transaction details and past orders from different channels.

● Quality vs Quantity

While multiple channels are great for engagement, they can cause a problem when it comes to providing guidance and support. Which means, a customer who buys a product through a third-party eCommerce platform won’t find any support from the brand as it was not bought from their channel. The same can happen for unsuccessful payments, with payment being deducted but the order not getting placed, because the channels are not integrated with each other.

In an omnichannel transaction system, customer conversations and interactions are stored, so that they can be served properly and efficiently. No matter which channel or medium they use to buy a product, their information will be captured in the company’s CRM and will be available to support executives to be used as a reference.

Which is Better?

So, when it comes to omnichannel vs multichannel, both have pros and cons. Multichannel transactions may be more convenient for customers, as they can choose the channel that best suits their needs. Omnichannel transactions, on the other hand, provide a more seamless and integrated experience for customers.

Ultimately, the best approach for your business will depend on your products, services, and target market. If you’re selling products that are best purchased in-store, then a multichannel approach may be ideal. If you’re selling services or products that can be purchased online or through a mobile app, then an omnichannel approach may be the way to go.

Whatever method you choose, remember that having a robust payment solution is vital for your business. in this regard, PayTabs is one of the best omnichannel payment solutions available and will help you provide a seamless experience to your customers and sell your products or services across the world.