Every organisation is susceptible to data breaches and encounters them almost every day. Cybercriminals are always on the lookout for security lapses, and one of their favorite targets is collecting sensitive payment information of customers. They can then use this information to commit payment fraud and cause damage to customers as well as the brand.

Thankfully, you can protect your customers’ information from being breached or hacked by using a 3D Secure payment gateway. With online shopping and e-commerce on the rise, customers look for more secure processes, especially when it comes to payment, and a 3D secure payment gateway provides them the much-needed trust.

What is a 3D Payment Gateway?

To counter online identity fraud and instill more trust in customers’ minds about online transactions, major payment processors were invented with a preventive measure known as a 3D secure payment gateway. It adds another level of security to your payments and ensures that payments go through successfully without exposing any sensitive information. Visa’s Verified by Visa and MasterCard’s SecureCode are examples of 3D secure payments that you must be familiar with.

It is often referred to as 3DS payments because it uses 3 Domain Servers to secure your online transaction. The three domains are:

• The Acquirer Domain: the merchant or the bank to which you’re paying.
• The Issuer Domain: the organisation or bank that issued the card being used.
• The Interoperability Domain: payment systems that bridge the gap between an Acquirer Domain and an Issuer Domain like Visa, MasterCard, and AmEx.

How Does a 3D Secure Payment Work?

3D secure gateways are responsible for making sure that every transaction is secure and carried out by the user himself. This is why the cardholder is often required to enter an OTP or a unique passcode known only to them. To understand how 3D Secure works, here are the steps in detail:

1. The card information is collected first by asking the customer to enter the card data for their credit or debit card.
2. Once the information is entered, the system checks if the card is already registered for 3D Secure or not.
3. If the card supports 3D Secure and is enrolled in the system, the user is then redirected to a 3D secure page of the respective card provider.
4. Now comes the additional verification step. Once the customer is on the provider’s website, they are asked to enter their unique password/pin or the one-time authentication code which is sent to their registered email address or phone number.
5. Once the correct information is entered and verified, the user then goes back to the merchant’s website to confirm the payment.
6. The user will then receive the ‘payment confirmed’ message. This marks the end of the payment process.

Why is 3D Secure Important ?

One of the biggest benefits of 3D secure payments is that it prevents any payment fraud or identity theft from happening for both users and merchants. As per a report by Deloitte, several organisations in the Middle East are struggling with online payment fraud, especially since the rise of the COVID-19 pandemic. Around 48% of the respondents, said that their organisation experienced more fraudulent activities this year than in previous years. This makes 3D Secure important for merchants as well.

3D Secure is especially beneficial for users thanks to its payment liability shift. The additional personal authentication step added in the 3D Secure process makes the issuing bank liable for any fraudulent chargebacks. So as a customer or a merchant, if you claim that an unauthorised payment occurred through your card, it’s the responsibility of the card provider to manage the refunds. Fewer chargebacks mean more money in your pocket. 3D Secure alleviates the resources associated with penalties, dispute management, and fees.

While 3D Secure payments are the gold standard for preventing payment fraud, it has slight drawbacks as well. The time taken for complete verification and payment discourages customers and is one of the biggest reasons for cart abandonment. To mitigate this issue, the 3D Secure process is being upgraded to 3D Secure 2.0.

What is 3D Secure 2.0 ?

With the help of 3D Secure 2.0, merchants wouldn’t have to choose to lower the risk of fraud or increase conversions. The improved 3D Secure protocol enhances the customer experience and facilitates the exchange of information between the three domains so that the process finishes quicker.

3DS 2.0 replaces the hassle of remembering passwords or waiting for OTPs by using a token-based authentication system that uses biometric identification like face or fingerprint. This process is much faster, as customers don’t need to wait for the payment provider’s website to open, there’s no need to remember so many passwords, and there are fewer steps to complete the purchase.

The new 3D Secure protocol is not just faster, it’s also more secure. It analyses more than 100 data points per transaction and provides an improved risk assessment. This increases the chances of fraud prevention as compared to the previous protocol. Merchants have experienced an 85% reduction in checkout time and a 70% reduction in cart abandonment rates by using 3DS 2.0.

Choose the Right Payment Gateway

Integrating a 3D Secure payment gateway has become a necessity for e-commerce businesses. Customers look for extra security while paying online and are generally concerned about their privacy and payment information. There are studies indicating that nearly one-third of cardholders won’t proceed with the payment if it is not completely secure. For merchants, this not only cuts into their business but also throws a bad light on their reputation.

Hence, it is important to choose the correct payment gateway for your business that not only implants a sense of security in the customer’s mind but is also fast and easy to set up. PayTabs is a leading next-gen payment solution that you can easily integrate with your e-commerce business. It ensures complete security during transactions and accepts several payment methods as well.

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The trend of online payments is on the rise in UAE. Ever since the onset of the pandemic, the trend of paying with cash has declined by more than 75%, while contactless and digital payments have doubled (nearly 98%) since 2020. The eCommerce industry in UAE has also exploded in the past couple of years, making it essential for businesses to integrate a payment gateway that allows consumers to pay online quickly and safely.

Payment gateways are a technology service that enables users to transfer money from their accounts to different users or to a merchant’s account to pay for something. The transfer happens digitally without any contact and provides users with various options for completing the payment. One of the biggest benefits of using a payment gateway is its security and the ability to accept payments from customers 24*7. This allows businesses to keep operating beyond their regular working hours as well. UAE is quickly developing in this digital space, and if you’re a business wanting to get ahead of the curve by accepting online payments, then this blog is for you.

Some of the Best Payment Gateways in the UAE

These are some of the best payment gateways that you can use in the UAE

1.PayTabs

 PayTabs provides omnichannel payment solutions to customers and is an online payment gateway recognized by both Mastercard and Visa. It has a simple documentation and onboarding process for merchants and provides a stellar dashboard that gives essential insight to merchants on a single screen.

2.Amazon Payment Services

 Amazon Payment Services offers customers different payment options in more than 8 countries, including payment in instalments. It not only monitors business performance but offers industry insights services as well.

3.Stripe

 Stripe is a famous payment gateway that is used in more than 135 countries across the world. It is known for its innovative solutions in preventing fraud, managing finances, payment processing, and more.

4.Telr

Telr is a PCI DSS Level 1 certified robust payment gateway that protects consumers from fraudulent activities. It can be customized easily according to your business requirements and supports business scaling.

5.CCAvenue

CCAvenue is a popular payment gateway in UAE that processes multiple currencies and has smart, dynamic routing. It integrates easily with your business and is cost-effective, thanks to a no-cost setup.

Factors to Consider While Selecting a Payment Gateway in UAE

Here are a few things that you should keep in mind while selecting a suitable payment gateway for your business.

1.Does it support international payments?

UAE is a humdrum of international activity with tourists and business owners from around the world. The possibility of a customer wanting to pay in a foreign currency is relatively high; hence you should work with a payment gateway that has issues accepting international payments from users. Not only will this make payments easier for clients, but it will also fuel your expansion plans and help reach a wider audience. If you plan on keeping the business local and only accepting payments in locally acceptable currencies, this factor shouldn’t affect you much.

2.Does it provide various payment options to users?

In 2023, there are several ways in which a user can decide to pay for a commodity or a service. Look for a payment gateway that provides different payment methods to the users so that they can pay for anything in their preferred method. Conduct some research to determine which payment methods your target audience likes the most and whether the payment gateway you’ve selected supports that payment method.

3.Does it provide a seamless user experience?

A payment gateway enhances customer experience and makes it easier for them to pay digitally. Its primary focus is to provide a friendly and seamless user experience that aids them during payment and makes the entire process more accessible, not the other way around. Try testing the interface of payment gateways yourself to determine how the users will perceive it and whether it matches your brand identity. You wouldn’t want customers to leave your website mid-transaction because of a complex payment portal.

4.How robust is its security?

Security should be the topmost concern while selecting your payment gateway. It is responsible for hundreds of transactions every hour and stores sensitive customer data. Since the customers trust you with their payments and data, it becomes necessary to integrate a payment gateway with robust security features. In a survey done by Visa, it was found that nearly 39% of consumers in the UAE have been victims of attempted online fraud. In the same report, Visa also states that after the pandemic and the increase in contactless digital payments, it is unlikely that cash will reach its previous heights of being the most preferred mode of payment any time soon. With security being such a big concern for customers, it becomes imperative that you instill trust in your consumers by partnering with a secure payment gateway.

5.How smooth is the integration process?

Payment gateway solutions are not just supposed to make life easier for customers but also make life easier for you. Once you’ve decided which payment gateway to choose based on its security and benefits, the next step is to determine how smooth is the integration process for that payment gateway. Select the one that offers hassle-free integration and provides customization options.

6.Is it cost-effective?

While incorporating an online gateway payment for your eCommerce business has several benefits, it is also important to perform a cost analysis. If you’re a start-up or a small business, choosing a cost-effective payment gateway that doesn’t affect your revenue negatively becomes necessary. Determine how much it will cost to set up the gateway, its maintenance, transaction fees, and other hidden costs so that it helps manage your business even when sales are rough.

Payment gateways specified in this article are quite popular in the UAE and have seen an increase in adoption in the past couple of years. Every payment gateway comes with pros and cons, and comparing each will provide a comprehensive idea of which payment gateway checks the most boxes for your business. PayTabs is an efficient payment gateway that processes payments quickly and offers different plans like start-up, growth, and enterprise according to their budget and business stage.

One of the biggest changes businesses have gone through in recent years is digitization. In addition to setting up an online presence for businesses, accepting payments online has also become normal. Payment portals have become an important asset for businesses worldwide and have benefitted them in numerous ways. The Covid pandemic accelerated this momentum, with more and more customers preferring the more convenient way of transacting online rather than paying cash and risking contact.

Payment gateways are a boon, especially for smaller businesses that might not even have a physical presence and are solely operating digitally. Online shopping has increased significantly in recent years, and not having a payment gateway can mean a substantial loss of business. In 2021 alone, the total market size of global payment gateways was valued at around USD 23 billion  and is expected to grow at a CAGR of 22.1% by 2030. Are you still wondering if it’s worth investing in a payment gateway? Here are some more reasons that will make a case for payment portals, no matter if you’re a small business or an established brand.

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Benefits of Using Payment Portals for Business

Enhanced User Experience

Payment portals help in improving the payment experience for users. It makes it easier for the customer to pay for your products or services through the payment portal and provides full visibility of their transactional data. Customers have full transparency on their past payments, get instant notifications about successful payments, and have options for completing payments from different channels. Users spend a substantial amount of time searching and deciding on products and will not have a positive experience if it takes forever to complete the payment, even after deciding what to buy. Payment portals also take care of customer service in case any payment falls through or gets stuck in processing for a long time.

Safer and Faster Transactions

One of the most significant advantages of having a payment gateway is the peace of mind it provides to both customers and businesses. Robust payment gateways ensure that every transaction is secured and free from any phishing attempt. They have fraud detection tools in place, high-level data encryption methods, and comply with PCI-DSS standards so that you and your customers get maximum security.

Payment portals process payments quickly as well. The process of adding something to the cart, deciding how to pay, and completing the payment can be done in a matter of seconds and with just a few clicks. Not only does it enable businesses to accept payments quickly, it also allows them to regulate their cash flow seamlessly.

Low Set Up Costs

There is a common misconception among business owners that setting up a payment gateway requires a lot of effort and money upfront and is only suitable for large businesses and enterprises. However, this is not true. While payment gateways require some initial set-up costs and can also incur a small number of chargeback fees and transaction charges from the business, they are worth it in the long run. Payment gateways have become an important and integral part of how organizations conduct business transactions, with more customers preferring to pay for things online rather than using cash. This trend will also remain for the future, so having a payment gateway adequately set up in place will become a necessity for businesses. Hence, it doesn’t matter if you’re running a start-up or a small business. Paying a minimum cost for setting up a payment gateway will help your business grow and reach new heights.

Increased Sales

You might wonder how a payment gateway can help increase the sales of a business. After all, they just accept payments and don’t serve any marketing purposes. Payment gateways help in increasing sales by providing numerous ways of payment to the customer. They can pay for something via debit cards, credit cards, UPI, or any other mode of payment they prefer. This not only makes life easier for customers but this ease of transaction kind of allures them to come back and do more business. Further, it has been found that businesses that accept card payments tend to get a lot of impulse buys from customers. A swipe of the card completes the entire transaction, allowing customers to spend more without overthinking.

Also Read: 4 Ways to Prevent Credit Card Fraud at Your Business

One more way payment gateways help increase sales is by enabling the business to go global. Anyone with an internet connection can access your website and, with a robust payment gateway in place, can pay for products from any corner of the world. You can accept payments in multiple currencies and through several methods to cater to international customers as well without any hassle.

Business Growth

In 2023, the internet will become the best place to set up and grow your business. Digital businesses are easy to set up and free of physical constraints like having a brick-and-mortar store or a cashier to complete payment. With the help of payment gateways, anyone from a big business to an individual artist can reach people worldwide and accept their payments for a product or service. Merchants who accept online payments are trusted by customers more because they have to pass through rigorous compliance checks and various security measures. This instils confidence in users and attracts them to shop from your store more frequently.

Conclusion

Having an online payment gateway in place has transcended from being a good-to-have service to an absolute necessity. Customers look for online modes of payment no matter where they shop, and they are bound to do so because of the different offers and discounts they can score while paying online. A survey done by BI Intelligence found that nearly 25% of customers would leave your website, even after adding things to their cart, if they don’t find their preferred mode of payment available. That’s one out of every four potential customers. If you’re a small business or just starting your enterprise, PayTabs can help you set up a robust payment gateway for your store. It will ensure that the transactions are quick and secure and give you full visibility of the transactions on the platform.

Ever since the pandemic eased out, more and more people have booked tickets to travel abroad, and most of these tickets were booked online. While tourism in the Middle East fell by 73% at the height of Covid-19, it recovered quickly and is expected to see a rise of more than 100% in 2022. Modern infrastructure blended with natural beauty, mesmerizing beaches, historial significance and tons of entertainment options is what attracts tourists the most. With middle eastern countries hosting numerous sporting events like the ICC World T20 tournament and the Fifa World Cup 2022, the number of people booking tickets online will increase exponentially. In fact, nearly 3 million people are expected to arrive in Qatar for the Fifa World Cup alone.

If you’re a travel agency trying to get back on your feet after the pandemic or are just starting out to attract customers, you should know the importance of payment gateways and accepting payments online from customers. Not only does it make life easier for customers, but it also ensures that transactions are completely safe and secure. While payment gateways are important for your travel business, choosing the correct one is also crucial.

In this article, we’ll list some points you can consider when selecting a payment gateway for your travel agency. It is important to understand that several vendors exist, and not every payment portal might suit your business needs and aspirations.

Tips for Choosing the Best Payment Gateway for Your Travel Business

Customer Service

One of the most important and basic features your payment gateway needs to have is efficient customer service. Travel agencies deal with customers from around the world, and they can face many different issues regarding payments, refunds, and more. Coherent customer service becomes necessary so that customers’ issues can be resolved promptly and effectively. Choose a payment gateway that is not only trustworthy but is available round the clock for your customers. They should also provide additional features like an active phone number that customers can contact for quick resolution and a working email address. There should also be support for handling queries online through the help of a chatbot or a voice bot.

Security

Your preferred payment gateway should be secure as well. Customers are always sceptical when transacting online and generally fear losing their money. Partnering up with a payment gateway that ensures safe and secure payments instils a sense of trust among the customers and gives them the confidence to not only do business with you but also come back in the future to do business with you again.

Look for payment gateways that offer bank-grade security features like PCI-DSS compliance, fraud detection, two-step verification, and more. Such features ensure that all your transactions are encrypted, safe, and protected from phishing or fraudulent activities. The fewer payment-related troubles you’ll experience, the more will be the faith of customers in your business.

Ease of Payments

Many of your potential customers leave the website if they don’t find their preferred mode of payment. You can lose a lot of business if your chosen payment gateway doesn’t allow customers to pay for products however they like. The best payment gateway for your travel business will accept payments in a number of different modes, currencies, and options. Along with providing different modes of payment, you need to ensure that paying for products on your platform is straightforward for even the least technically savvy person. Unnecessary complications and too many intermediary steps before a transaction are complete can trigger the customer to leave the payment mid-way and search for a competitor. 

Cost

The next most significant factor you need to consider while choosing a payment gateway for your travel business is how much it will cost you upfront and in the long run. It’s important to understand that payment portals will incur costs in different areas, including the set-up fee, charge for every transaction, and an annual maintenance charge. If you’re a small travel agency or are just setting up your business, it becomes all the more important to analyse your budget and how much you can afford to spend on a new-age payment gateway.

Examine the volume of transactions your business experiences on a daily basis and estimate future trends. If your transaction volume is considerably high, choosing a payment gateway with a higher transaction fee and annual charge might not fit your budget. Similarly, if the transaction volume is low, you can look at some competitive pricing and still be profitable. However, it is vital to have a payment gateway in place in 2023, no matter what it costs, due to its high ROI in the long run.

Timely Payouts

Maintaining cash flow in your business is essential to ensure you don’t run out of funds when needed. Customers can book tickets and pay for services on the same day, but if it takes a lot of time to reach your bank account, then you have some deliberation to do about your payment gateway. While a three-day wait is considered typical for business payouts, anything more than that should be a reason for concern. If your payment partner takes more than three days or even a week to pay you back, it can cause serious cash flow issues, especially when customers ask for refunds or cancel their booking. Choose a payment partner that doesn’t have a history of delayed settlements and goes through with their payments at regular intervals.

Conclusion

An increase in the number of people opting for booking tickets online should be an indication of how important a payment gateway can be for your travel business. Apart from just booking tickets, it will prevent any fraudulent activities from happening with you or your consumer, provide complete visibility on the transactions, and help you increase your business. PayTabs is an excellent payment partner for your travel business. With decades of combined experience among the team and several clients under their belt, PayTabs is one of the best payment gateways for any business.