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Customers are the life and blood of businesses. No matter what you sell, your customers need a few common things: security, quality, and safe payment options. You might be surprised to know that 18% of the customers abandon their cart because they don’t trust the website with their credit card information, and 9% because of a lack of payment options.

Which is why, payment integration in a website is crucial to your business. Therefore, it is necessary to choose a payment gateway that helps you retain your customers by avoiding the above-listed problems. Your payment gateway should both satisfy your and your customers’ needs. Now, before you dive into how to add payment gateway to a website, find out what a gateway is.

What is a payment gateway?

A payment gateway allows authorisation and processing of payments by transferring data. With the world going digital, payment gateways have become a part of almost all online and offline stores. One of the reasons why they are so popular is that they ensure the safety and security of data while ensuring speedy transactions. A website with a payment gateway typically has a higher chance of sales and profits.

How does it work?

Just like a point-of-sales terminal, a payment gateway ensures quick and smooth transactions. To ensure the safety of the data processed and transferred, payment gateway providers use encryption and security protocols.

A payment gateway follows these steps:

1. The customer clicks on the “pay now” button during checkout.
2. They select the payment method and enter the required card details.
3. The details added are shared with the payment gateway.
4. The payment gateway encrypts the data and shares the details with the payment processor.
5. The bank gets the authorisation request and responds to the payment processor with approval or rejection.
6. The merchant bank receives money from the customer’s bank.
7. The website displays the confirmation/rejection accordingly.

Types of payment gateways

There are two types of payment gateways for a website.

· Hosted

Hosted payment gateways involve redirecting your customers to the website with payment gateway for the payment process. It is a third party where customers complete payment and are redirected back to your website. This type of gateway does not require PCI compliance and the customer data is stored by the vendor. Since they require you to redirect your customers, this type doesn’t help in promoting your business. It is considered best for small businesses, which do not receive high traffic as well.

· Integrated

These types of payment gateways are also called non-hosted payment gateways. Integrated payment gateways help your customer to stay on your website and pay from there only. The best part of these gateways is that you can customise them to match your brand and promote your business. Customers also get a smooth payment process since they are not redirected anywhere. However, since they are integrated into your website, you need to obtain PCI DSS compliance, and the payment gateway integration requires a development team.

Transaction types

One of the reasons why payment gateways are so popular is that they support a variety of transactions. Some of them are:

· Payment/sale

Immediate payment happens under this transaction. It is a combination of authorisation and capture transactions that helps you fulfil instant orders and payments.

· Authorisation

Authorisation is used to check whether the customer can pay the requested amount or not. Funds are not transferred in this transaction, but the availability of funds for future payment is verified. This type of transaction takes a while to complete.

· Capture

This type of transaction allows you to capture the authorised money for settlement. When it takes time for you to ship the product, the payment is first authorised and then captured once the product is shipped.

· Refund

When the customer cancels an order for some reason, the refund transaction is initiated. It happens only for sales and capture transactions.

· Void

This happens between the authorisation and capture transactions. Void transactions are cheaper than refunds and can happen when a payment has been authorised but not captured by the merchant.

Integrating a payment gateway into your website

Before you make a payment gateway integration into your website, you should understand the working and benefits of payment gateways. There are a lot of gateways available in the market. Explore your options and check which ones are compatible with your website.

The steps of integrating a payment gateway into your website will depend on your business needs, the customisation required, and the payment gateway you have chosen. However, the general flow of the steps remains the same.

· For hosted gateways

Hosted gateways are available on the provider’s website. All you need to do is add a payment button on your website and the connection is made through API. Hosted gateways are highly secure and can be easily integrated.

· For non-hosted gateways

Non-hosted gateways require a little more effort to integrate. Since you need to add it to your server, you need a technical team to handle the integration. This method also uses APIs to make the connection with your server.

· Direct post methods

This method ensures you don’t need to get PCI DSS compliance since the data doesn’t get stored on your servers. A vendor can easily set up an API connection between your website and the payment gateway.

Some things to keep in mind while integrating:

• If you choose a hosted payment gateway, you will require an SSL certificate, merchant’s ID, MWS access key, and secret key.
• If you choose an integrated gateway, pay special attention to security and safety measures. You might also require PCI DSS compliance.

Benefits of payment gateways

A payment gateway has several benefits that make them perfect for your website. Some of them include:

• Quick transactions: Payments through payment gateways take mere seconds to process.
• Security: A secure payment method is a key to customer loyalty. Payment gateways use several security protocols and encryption to ensure a safe and secure transaction.
• Wider reach: Due to their availability in all corners of the world, payment gateways increase your customer base and sales.
• Costs: Apart from the initial set-up cost, most payment gateways charge an affordable transaction and chargeback fee.
• Saves time: Since the payment takes only seconds to process, payment gateways save both your and your customers’ time.
• Improves customer experience: A smooth payment process and availability of multiple payment options offer a superior customer experience and enhance customer loyalty.
• Promotes business: This happens in case of a non-hosted payment gateway that allows you to customise it as per your requirements.
• Availability: Your customers can pay anytime and from anywhere in the world using a payment gateway.

Choosing a payment gateway provider

Consider the following factors while choosing a payment gateway provider:

· Pricing

Pricing is one of the most important factors when it comes to choosing a payment gateway provider. All providers typically charge setup fees, monthly fees, merchant account setup fees, and transaction fees. Read the pricing requirements cautiously and check if there are any hidden costs. Choose an affordable payment gateway that also ensures long-term quality.

· Ease of integration

After pricing, it is crucial to check the process of payment integration in website. A simple and inexpensive integration process should be the preference. However, that also depends on the type of gateway you choose. Hosted gateways have a simpler integration process than non-hosted ones.

· Settlement

Check the settlement cycle your gateway offers. A quick settlement cycle is crucial for the smooth functioning of your business. Choose a payment gateway provider that suits your needs the best.

· Number of payment methods

A gateway that offers the maximum payment methods is the most preferable one. More options will ensure that you can reach a wider customer base and reduce the cart abandonment rate.

Begin by listing your requirements before choosing a payment gateway. Consider and compare different options and check their suitability for your business. A gateway is a crucial part of the website and your business. Integrating one into your website is not a lengthy process. Keep the above-listed things in mind before integration.

Or, to be on the safe side, simply choose PayTabs as your payment gateway provider as it comes with excellent customer support and avant-garde technologies to quickly and conveniently integrate into your website or e-store.

The growth of e-commerce has exploded in the past few years in all parts of the world. UAE alone saw a record $3.9 billion in eCommerce sales in 2020. It constituted 10% of the total retail sales of UAE. While this significant growth is attributed to digitization and the pandemic, another integral reason is the emergence of safe and secure payment methods. Whether you have an online start-up or an offline store, both need quick, safe, and no-touch payment methods. This is where eCommerce payment gateways come into the picture. In this blog, we will discuss all about payment gateways, their benefits, the best 7 payment gateways for ecommerce in UAE, and factors to consider while selecting one for your website.

About Payment Gateways

In simple words, a payment gateway is a technology that helps transfer your money to the merchant’s account on the successful purchase of a product/service. This happens with a secure transfer of data from the customer to their bank, card services, and then the merchant. Payment gateways for eCommerce websites are highly secure and available 24*7*365. People from all corners of the world can use them to make payments. This is also why all online stores are integrating one into their websites and apps these days.

Best 7 Payment Gateways in UAE

1. PayTabs

Established in 2014, PayTabs is known for its quick payment processing and stellar fraud prevention system. Its innovative and agile solutions have enabled businesses to process payments securely. PayTabs’ security has been recognized by both Visa and Mastercard and made it a popular payment gateway provider in UAE.

Features

• Omnichannel payment solutions
• Simple onboarding process and documentation
• Stellar merchant dashboard with all the information on one screen
• 360 payment processing capabilities

PayTabs has a straightforward pricing system. It offers 3 plans: a start-up plan, a growth plan, and an enterprise plan. The start-up plan is perfect for early-stage companies and has a fixed monthly service fee. The growth plan helps drive sales and offers great value. The enterprise plan is for businesses looking to expand on a greater scale.

2. Telr

Telr’s state-of-the-art security and real-time monitoring have made it one of the top payment gateways in UAE. You can integrate Telr into your website in 5 different ways. It offers multiple currencies and operates in more than 100 countries.

Features

• Easy payment processing and supports business scaling
• Anti-fraud protection is available
• PCI DSS Level 1 certified
• Highly responsive and customisable

Telr has 3 pricing plans to cater to businesses and people in different stages. All these plans include all its features. The first plan is a start-up plan which is ideal for early-stage businesses and requires only a setup fee. The second plan is SME which is ideal for small and medium enterprises. The third plan is SME plus which is suitable for bigger organisations.

3. Amazon Payment Services

Previously known as Payfort, it was acquired by Amazon in 2020 and renamed as Amazon Payment Services. The platform is reliable, minimises transaction risks, and accelerates the influx of revenue. This payment gateway in UAE is tailored to meet the needs of different businesses and help you in building better relationships with your customers.

Features

• Supports payment acceptance and business growth
• Offers industry insights service
• Available in 8 countries
• Offers pay in instalment service to customers
• Monitors business performance

Amazon payment services offer a standard plan and customised plan. The standard plan has a fixed monthly account management fee and requires no setup fee. The customised plan is tailored to meet the specific needs of its clients, and prices differ accordingly.

4. CCAvenue

Based in India, CCAvenue is one of the popular payment gateway providers in UAE. What makes CCAvenue an attractive option for businesses of all sizes is its 24*7 on-call support and fraud prevention.

Features

• Omnichannel payment platform
• Multiple currency processing
• Smart dynamic routing
• Easy integration and customisation

CCAvenue charges no setup fee for its basic plan, and the maintenance fee varies as per the plan chosen by the client. The start-up pro plan is suitable for new and small businesses as it charges no setup fee and minimal maintenance and transaction fee. The privilege plan is customisable, and charges vary as per your requirements.

5. Checkout

Popular for its seamless transactions, Checkout is an eCommerce payment gateway that provides a variety of customisable plans to support specific markets. It is a leading international payment gateway because of its stellar user experience, simple setup, and multiple integration methods.

Features

• Multiple integration methods
• Exceptional user experience
• Efficient management of risk and fraud
• Performance monitoring

Checkout offers highly customisable payment solutions tailored to meet the specific needs of your business. You can get in touch through their website for specific details.

6. Stripe

Stripe is known for its innovative solutions for payment processing, fraud prevention, and finance management. It supports more than 135+ currencies and supports revenue optimisation.

Features

• More than 135+ currencies
• Supports increasing authorisation rates
• Multiple integration options

Stripe offers 2 pricing plans: integrated and customised. The integrated plan has no setup and monthly fee and has pay-as-you-go pricing.

7. 2Checkout

Established in 2006, 2Checkout is another popular eCommerce payment processor with presence in over 200 countries. Apart from processing payments in multiple currencies, the platform supports business and revenue growth.

Features

• Supports almost all eCommerce platforms
• Risk management and compliance
• Accelerates time-to-market

2Checkout offers 3 pricing plans: 2Sell, 2Subscribe, and 2Monetize. All three plans offer the option of paying only when sales begin. The setup cost is slightly higher than other platforms, but the multiple benefits are worth it.

Factors to Consider While Selecting a Payment Gateway

Before selecting a payment gateway, ask the following questions.

• Is your gateway internationally accepted?

An internationally accepted eCommerce payment gateway supports your expansion plans and helps you reach a wider customer base. However, if you plan on keeping your business local, a local payment gateway is ideal.

• Does it offer the payment options your users prefer?

Define your target audience before looking for payment gateways. Research their preferred payment methods and then select the gateway that offers them.

• What kind of user experience does it offer?

Using a payment gateway in UAE is essential to building customer experience and loyalty. Test the user experience well before integrating a gateway into your business.

• Is it cost-effective?

A cost-effective payment gateway will help you stay in business longer and manage even when sales are rough. Determine the setup, maintenance, and transaction fee and check for hidden costs.

• Is the integration process smooth?

Payment gateways for eCommerce websites that offer a hassle-free and simple integration process should be preferred over others. However, remember that customized plans require more effort and resources than normal ones.

• What other services does it offer?

Payment gateway providers generally provide several other services, such as business growth, customer insights, and fraud prevention. Determine your requirements and see if your preferred gateway offers them.

The eCommerce payment gateways we have listed in this blog are all popular in UAE and each comes with its own sets of benefits. So, do a bit of research, weigh the pros and cons of each, compare and then choose the one that fulfils your criteria and suits your needs the best.

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.

2. 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.

Up until the 18th century, people used the bartering system to pay for goods and services. Fast forward a couple of centuries, and today, anyone can roam the world without so much as a wallet on themselves. Buying any product and paying for it has become extremely easy, thanks to countless eCommerce stores and the wide variety of payment methods available. So, if you are running an eCommerce company and wish to offer simple and smart offline and online payment methods to make shopping enjoyable for your customers, this article is for you.

Here is a look at some of the popular payment methods used in eCommerce. You can adopt some or all based on your requirement.

Cash

This is the original payment method and the only one that was used for a long time before credit cards, debit cards, and online payments took over. It is one of the simplest payment methods unless someone needs to hunt for change. Offline payment methods like cash might be slowly losing their monopoly but are still extremely helpful in developing nations where digital payment systems have not become mainstream. A customer can simply order something from your eCommerce store and pay for it in cash after delivery. This is especially a great option for those customers who are not too tech-savvy or confident about making payments online.

Credit Card

Credit cards are one of the most popular types of payment methods used in the eCommerce industry for both customers as well as business owners like you. Credit cards are safe to use and very secure, ensuring that only the holder can use them for any transactions. The card number, card holder’s information, and CVV numbers provide three layers of protection and can help your business in detecting fraud as well.

With advancements in technology, just a swipe or tap of the credit card allows the user to pay for anything they want at an offline store. And online, they just need to enter a few details like card number, name, CVV etc. to carry out the transaction. Apart from their ease of use and convenience, credit cards provide a lot of benefits to users as well. They often give discounts or cashback for every purchase and have reward points to encourage people to spend more, and it helps improve the credit score of an individual or a business as well.

Debit Card

Debit cards are the second most preferred payment method after credit cards. This is mostly because a debit card allows users to spend only that much money that is available in their account and that money is also debited instantly. Unlike credit cards, where users often have a limit higher than their actual pay, and they need to pay for it after the billing period. Some credit cards also provide an EMI option to pay their dues, which a debit card can’t provide. However, many people continue to use a debit card as their primary mode of payment wherever they go. Which means, enabling your business to accept both debit and credit card payments is a wise move.

Bank Transfer

Direct bank transfers are also a popular payment method, especially if you are a new age eCommerce company that ships worldwide but don’t have a robust and international payment setup yet. In case of bank transfer, users need to fill in the account details for whom they want to pay and then confirm the transaction from their own bank account, limiting the chance of false authorization.

But while the transfer method is safe, there are a lot of scammers around the world who try to dupe customers by providing false account details, so that they receive the payment in their account rather than the business. Bank transfers can also take a lot of time and are dependent on how the banks are performing. So, if a customer sends you money on a bank holiday, it might not get processed that same day.

App Payments

This is perhaps one of the fastest-growing online payment methods across the world. App payments and digital wallets like Apple Pay, Samsung Pay, Google Pay and more have become popular, thanks to their convenience and ease of use. So, it makes sense for your business to have such options. With these apps, users don’t need to carry cash, cards, cheque books, or even their wallet. They can just use their smartphone to pay for any product or service, be it in-store, online, or offline.

Payment interfaces like UPI make it easier for everyone to pay for a product. All they need to do is scan a QR code, enter someone’s mobile number or VPA ID, and it’s done. In fact, several eCommerce companies have realized the benefits of app payments and have started providing their own payment service to users free of cost. You can follow suit too.

Cheques

Even though cheques are rarely used for making simple eCommerce transactions, it is still a viable offline payment method. It is especially helpful if yours is a business that has merchant accounts that generally rely on cheques for offline transactions. But you need to make your business ready to accept electronic cheques or E-cheques as well.

Wrapping Up

In today’s age, customers are spoiled for choices when it comes to payment. They are no longer dependent on cash transactions and hope that an e-store can provide them with multiple payment modes.

So, now, as an eCommerce store, you need to keep an eye on multiple payment sources to have clear visibility of how your business is performing. Managing the flow of money efficiently is important as your customers are paying in cash or via credit cards, debit cards digital wallets, cryptocurrencies, e-cheque or other payment methods.

This is the reason why a payment gateway solution like PayTabs can come to your rescue. It can not only help you accept payments via different modes safely, quickly and effectively, but also keep track of every transaction, no matter which payment method is used. PayTabs is an easy to use, convenient, and secure payment gateway that allows your customers to pay for your products in various methods and helps you monitor your finances easily.