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Tips To Choose the Right Payment Integration Method for Your Ecommerce Site

Category: Startup

Tips To Choose the Right Payment Integration Method for Your Ecommerce Site

Tips To Choose the Right Payment Integration Method for Your Ecommerce Site

Advancement in technology is gradually making payment integration easier and simpler. However, as new entrants to the world of eCommerce, you may find it a little difficult to choose the right integration method for your eCommerce business. At present, there are three popular integration methods and in this article, we are going to discuss these options in order to help you choose the right option for your business.

  1. Hosted checkout pages

As a matter of fact, this option can be used by any type of merchant, whether small or big.

There are many reasons why small merchants should choose this as their checkout solution. First of all, there is no need to hire a software developer when you integrate it with your website. It also works well when your website is not PCI compliant.

Hosted checkout pages are also beneficial for medium to large-sized merchants, who have already designed and created their checkout pages. This is the quickest way to supplement your alternative payment method. Almost 60% of the shopping cart abandonment incidents take place because people are not able to use their preferred mode of payment. It is more prevalent in the countries where cards are not used frequently.

The benefit of hosted checkout pages for merchants:

It has the following benefits for the merchants:

  • PCI compliance is not complicated
  • No need to store card information
  • Ideal for quick global outreach
  • Supports all major credit cards and major currencies
  • Supports local payment options
  • Offers easy integration

  2. Payment API

If you are among the perfectionists who would like to exercise extreme control as far as design and user experience of checkout pages is concerned, a payment API is the right solution for you.

For card processing, payment API is the ideal solution whereas if you need both card processing and value added services such as coupons and catalogs, currencies and subscription billing, Payment Plus API should be tried.

It doesn’t require customers to leave the site in order to check out and makes checkout a simple process with minimum steps to complete.

The benefit of payment API for merchants:

It has the following benefits for the merchants:

  • The XML based API doesn’t require any specific programming language
  • A native mobile checkout flow can easily be developed
  • Easier PCI compliance through client-side encryption
  • Tokenization enables the sellers to save the card information of the shoppers so that the returning shoppers need not repeat the process all over again

Payment API makes the checkout safe and secure.

 3. Shopping Cart

If you are using any shopping cart such as Magenta or Prestashop, the “shopping cart” is the ideal integration method for you. It offers users almost the same benefits as they get in hosted pages. It is comparatively easier and simpler to setup and it doesn’t require you to make any payment.

Choosing a payment processor

Your selection of the integration method is very important to offer better user experience and it decides your future success in the eCommerce space.  But, there are other factors as well that are no less important. Make sure that the payment processor you choose meets all your business needs and completely fits into your business model.

Make sure your payment processor is able to upgrade their technology and services to match your needs when you grow.  Make sure they offer the functionalities you require at present and might require in future.

When you come to PayTabs, we sincerely listen to your needs and answer your queries.  We have imbibed a culture of striving to meet your business requirements. We are also determined to resolve the issues you face during your journey to become a successful eCommerce entrepreneur.

Get in touch with PayTabs today and talk to a consultant to discuss your business needs and how to achieve higher conversion.

Should You Use Chatbots for Your Small Business?

Should You Use Chatbots for Your Small Business?

Automation is the way ahead, and businesses are beginning to realize that. One way or the other, companies are trying to automate as much as possible, thus minimizing the need of human intervention. So far, it has worked well. But while the big players reap the benefits of chatbots, can small businesses enjoy some of it too?

The answer is yes. Chatbots are not grand mechanisms suitable only for big conglomerates. Innovative yet simple, even a random blogger could use chatbots to be more efficient.

Analyzing the benefits

Here is how chatbots can improve things for small businesses:

1) Improving the reach

With chatbots, you can be there for your customers 24×7. Chatbots ensure that nothing, from interaction to complaints, go unnoticed. The interactivity goes a long way in growing the reach of your business and thus, the overall growth.

2) Simple to use

Many innovative ideas came and went without making a mark. The reason chatbots stuck was their sheer simplicity. Understanding chatbots is something that even the most non-technical person could do. While it is no big deal for a business-owner, it is an even smaller deal for the customers. In other words, using a chatbot is far simpler than many other ways of interacting with a business, which is why chatbots are fast gaining popularity among users.

3) Cheaper than you guessed

Once you get a chatbot, everything else is free of cost. Chatbots do not need lunch breaks, vacations or weekends. After the initial investment, you can have chatbots working 24×7 without worrying about their salary. Compared to humans, it is both more effective and cost-efficient.

4) Customizable

When we hear the word “bots”, we imagine pre-programmed robot texts that are boring at best. However, the new-age chatbots are anything but boring. Highly customizable, chatbots could be tailored to suit the specific needs of your customers. You have to program all the responses, of course. But from the user’s perspective, chatbots appear like cool agents who have a quirky response to everything.

Few things to consider

Chatbots are great, of course. But that doesn’t mean they are the solution to all your problems. There are some reasons why chatbots may not be the best solution for your business. Here are some:

1) Alienation from the customers

One of the biggest (and perhaps rightful) concerns small businesses have is getting alienated from their customers. Chatbots are great for programmed responses, but even the Machine Learning-powered chatbots could not hope to compete with the level of personal touch human interaction provides.

2) Not everyone’s cup of tea

One thing to keep in mind is that chatbots work best with B2C businesses, where template answers to predictable questions get the job done. However, in B2B companies where complaints are raised only in serious situations, chatbots are largely ineffective. Thus, big or small, the type of business largely defines the need of chatbots.

3) Skewed demographics

As a business owner, you would prefer your audience to be diverse (until and unless you are extremely niche-specific). However, chatbots have been found to be the opposite of diversity. Majority of chatbot users are teenagers, while an overwhelming majority are Americans. Restricting your audience to a single country and age group is not the most desirable outcome you might have hoped.

Conclusion

So, chatbots are not meant for everyone. But, for the large part, they are agents of innovation and effective in most cases. Especially if you are a B2C business that needs to be in touch with your customers at all times, nothing beats chatbots. In the coming years, we will see a growing use of automated tools for customer interaction. It is your chance to be part of the future, now.

5 Answers to the Most Frequently Asked Questions about Payment Gateways

5 Answers to the Most Frequently Asked Questions about Payment Gateways

If you are a business with an online presence, you surely know how payment gateways can make it easy for you to receive payments from customers based anywhere in the world. This is a merchant service that acts as a virtual equivalent of a Point of Sale in a physical store. In simple words, without a payment gateway, your business wouldn’t run at all as this service allows the payment processing of debit and credit cards in the online world!

Luckily, with a payment gateway like PayTabs which is easy to integrate with your website or mobile app, you can expect fast and secure payments without any glitch. But that doesn’t mean you don’t have questions about payment gateways. So, here are 5 most asked questions with their answers:

  1. How does a payment gateway function?

When your customer purchases a product online, a payment gateway like PayTabs contacts your store’s acquiring bank. This bank is the one that will receive payments. The acquiring bank in turn contacts the bank which has issued the customer’s credit card or debit card. If there is enough money on the customer’s card to pay for the purchased item, the issuing bank will allow the transaction. The payment gateway will then be able to gather the money from the issuing bank of the customer, and all of this will happen in seconds!

  1. How much does a payment gateway charge?

The kind of fees you have to pay will vary from one payment gateway to another. This will usually cover your setup fees, monthly fees and qualified rate that is charged per transaction. Support and reporting fees might also be included. So, go with a reliable and affordable gateway like PayTabs and avoid hidden charges.

  1. What is a merchant account and why do I need it?

If you wish to receive payments from customer’s debit or credit card for every purchase made, you definitely need a merchant account. It is a specialized bank account that carries the fund you receive from customers for a specific time period, before sending it to your traditional account. You need it because without a merchant account, you cannot process payments. A merchant account will work with the payment gateway to facilitate easy transactions, so that the gateway deposits all payments into this account.

  1. How to choose a payment gateway?

Though there are many payment gateways available these days, not all can be trusted equally. But with PayTabs, you will get all that your business needs with ease. This gateway is highly secure, and lets you accept payments in 168 currencies. Plus, merchants can use it even if they don’t have websites. PayTabs also provide regular financial reports and lets you maintain all customers and transactions from a single dashboard. This can help immensely when it comes to keeping a tab on the progress of your business.

  1. Is the payment gateway secure enough?

A payment gateway must be very secure since it stores and transfers a lot of customer details and online frauds and identity thefts are very common these days. So, choosing a gateway that complies with PCI DSS requirements is ideal. It should feature advanced tools like intrusion detection, firewalls, and secure credit card data storage to avoid the risk of frauds. PCI DSS is also known as Payment Card Industry Data Security Standard, and it ensures that all businesses store, process and accept card information in a very secure manner. So, choose a gateway like PayTabs, and rest assured that you have minimized the risk of frauds almost completely.

Now that you know what a payment gateway is essentially all about, choose the right one and make your business a huge success!

One-on-One interview with Abdulaziz Al Jouf – Founder of PayTabs

One-on-One interview with Abdulaziz Al Jouf – Founder of PayTabs

Evrim Persembe from Startups Middle East interviews Abdulaziz Al Jouf

At 4AM when most of the world is still snoozing, Abdulaziz Al Jouf wakes up without an alarm. By 8AM, when everyone is just about awake, Jouf has already tackled his most pressing problems for the day and is ready to handle all that comes his way in true entrepreneurial spirit.

Entrepreneurship isn’t new for him. He founded seven companies including eCommerce ones. During this time, Jouf realized that all online companies faced a common problem when it came to payments. The market was painfully slow in its execution. It took six months just to get to the bank to set up the gateway and a year to start your first transaction.

Jouf had the idea brimming at the back of his mind since 2010. No company existed at the time to fulfil this market gap. Those who did weren’t scaling beyond limited geographies. By the beginning of 2013, Jouf became sure of his idea and started working on a prototype.

A few months later Jouf chanced upon a meeting with someone who showed a lot of interest in his product. The meeting extended to four hours and several cups of coffee. Only next day did he discover that the person he met was a part of Wa’ed Ventures.

Even though Jouf had prior entrepreneurial experience, funding was new because he had always been bootstrapped in his startups before. It was like this was a story waiting to happen. Once the funding came, new hires helped build the rudimentary system further and by December, they had their first transaction.

During the initial days, PayTabs had to hard-code every merchant who joined. They had to spend hours to convince the bank that this technology was set to disrupt the way transactions were being carried out online. By the end of the month, they had 300 requests in their hand. Jouf knew that this was good, but how scalable would the technology really be? He found his answer when in a month’s time the company processed quarter million dollars.

In fact, working with banks to execute this entire system has been PayTabs’ biggest challenge. During his initial days, Jouf met a banker with 20 years of experience. The banker outright disapproved of his idea and refused investment. He said it would either kill Jouf or take forever to execute. Jouf walked out of the meeting thinking it was probably then a good idea! Anytime you try being in disruptive technology, it is generally met with resistance as people have a comfort zone with what is currently working. It turns out that the same reason is also why PayTabs has very few competitors who can match up numbers.

The investment almost sounds like cake walk to outsiders but Jouf knows the hard work he had to put in for 13 months before he got his first investment cheque of 2.5M. If he were to do the whole thing again, the one thing he would do differently would be to raise his second and subsequent rounds of funding as quickly as possible.

Speaking about the start-up ecosystem in Saudi Arabia, he said that things are encouraging now with many more investors than before. But his advice to budding entrepreneurs is to not be greedy and push for a clean evaluation from potential investors before talking money on the table. Earlier investors would wait for the company to show proof of market, but now they are much more open to even funding the idea and the entrepreneur’s execution capabilities. Entrepreneurs, in turn, shouldn’t be avaricious, and look to work with investors who have domain expertise.

On a parting note, Jouf humbly mentions that he still has a lot to learn about finance. For a company that has changed the way transactions are done in 17 countries, we keep our fingers crossed to see how things pan out in the next few years.

Listen to the podcast on the following links:

1. iTunes: https://itunes.apple.com/bh/podcast/startups-middle-east-with-evrim-persembe/id1347175812

2. Stitcher: https://www.stitcher.com/podcast/startups-middle-east-with-evrim-persembe

3. Website: http://startupsmiddleeast.com

4. Facebook: https://www.facebook.com/startupsmiddleeast/

Top 3 things to consider while choosing a payment gateway for your business

Top 3 things to consider while choosing a payment gateway for your business

Whether you are selecting a new payment provider or looking to replace your existing one, you would want an efficient, versatile product that fits your budget. You do not want a provider who regularly gives you problems and puts extra workload on your support team. Overall, your choice of an online payment gateway could impact the overall customer experience on the website and also the way you receive money from customers. So lets look at what are the main things to consider while finalizing on a payment gateway.

Things to consider before choosing your payment provider

  • What matches your business needs – classic or modern-

The basic difference between the two types of gateway is the merchant account. While the classic payment gateway requires you to have a merchant account so that it can transmit money into your account, a modern payment gateway does not. The modern ones draw funds directly from the customer’s bank account or credit cards and after validating them, deposits it directly into your account. Even though the modern payment gateways require you to do very less in order to use them and receive money from your customers, they mostly charge a larger transaction fee and also drive customers another website for making the payment, which could lead to lesser conversion. Also classic gateways are considered to be much safer and secure, hence a better choice for bigger businesses. They also charge a lower transaction fees. Find out what aligns with your business first.

  • Which payment modes and currencies do you want your payment provider to support?

You most probably know which countries you are selling to most and the currencies that your customers like to pay in. So the first thing to check is – does your payment gateway support alternative payment methods such as Sadad in the Middle-east. It only makes sense to choose a payment gateway that makes it easier for customers to pay through a mode which they are most comfortable with. Hence check which are the payment methods that the payment gateway of your choice support. A gateway like PayTabs supports 168 currencies and offers several alternative payment options.

  • How secure is the payment gateway?

Every online and ecommerce business that accepts online payments faces the risk of fraud and chargebacks. Both of these can hurt the business and hence it makes sense to go with a payment processor that offers secure transactions. This is probably the most important factor that should make you for or against a payment processor. Fraud is the first thing you will want to fight and want to protect your customers against. Hence make sure your payment gateway is secure, very secure. This means it should at least comply with PCI Data Security Standard and must be integrated with 3D secure. Level 1 PCIDSS compliance means that the gateway has achieved the topmost level of security and deals with more than 6 million transactions every year.

Apart from implementing these market research tips, you should also look at fee structures of major payment gateways. Make sure there are no hidden charges. Check for their transaction failure rates as well.

Conclusion

Your payment provider is the “better half” of your online store. You should use your customer’s needs, your business needs, and general essential security requirements to select a payment services provider for your eCommerce site. It goes without saying that choosing the right payment gateway can go a long way in helping your business. If you have any further questions about which payment gateway is the best for your business, mail us at [email protected]