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Online payment gateway red flags: 6 signs you need a new one

Category: Growth Hacks

Mohab Growth Hacks, Guest Posts 0

The best payment gateway service will set your business up for success. At worst, the wrong online payment gateway will put your business at risk of security breaches and lawsuits.

But it’s not always straightforward to spot a bad online payment gateway. Here are 6 red flags to watch out for.

Ease of payment

More and customers are shopping on mobile. Business Insider reports that m-commerce will account for 44% of e-commerce by 2024. Unfortunately, there are many payment gateways that are still not mobile-friendly.

Global online shopping is also on the rise. In 2019, the average international e-commerce basket was valued at 97.87 USD. Before the pandemic, numbers showed that international customers also tend to buy more often. Making customers do math in their head to calculate exchange rates and fees is a sure recipe for checkout abandonment.

A payment gateway that’s not mobile-friendly and doesn’t accept multiple currencies will put you at a disadvantage. PayTabs allows payment in multiple currencies. No matter where your customers are, they can view the fee and pay in their local currency. It’s also mobile-friendly and supports all major credit cards.

Weak security standards

2020 was a year of explosive growth for e-commerce. Sadly, online fraud rose as well with the increase of customers. A found that 37% of customers surveyed had been a target of online fraud. According to LexisNexis, total online fraud attempts per month experienced by U.S based retailers increased by 24.2% in 2020. E-commerce sites now face a host of security risks from cybercriminals.

Find out if your payment gateway provider is compliant with international standards such as Payment Card Industry Data Security Standards (PCI DSS). Choose an online payment gateway that’s 3D secure, uses Secure Socket Layer (SSL) technology, and tokenization. The best ones will have an added in-house fraud protection layer.

Slow payment processing speed

Customers expect a fast checkout – 18% will abandon cart if the payment process is too complex. It also increases complex chargebacks and hurts the user experience. Choose a provider that offers a seamless purchase experience and an intuitive terminal.

In addition to the actual transaction itself, each payment gateway provider has different payout terms and timelines. Delayed payout affects your cash flow, especially if you’re a small or medium enterprise (SME) or a startup. At PayTabs, we transfer deposits to you within two business days. Try a free demo of PayTabs here.

Lack of robust reporting & reconciliation

If your payment gateway doesn’t have sufficient data collection, you’ll be making business decisions on guesswork or worse, wrong data. You need real-time data reconciliation and accurate reporting.

We recently launched PT 2.0, our new enhanced payment gateway. It allows you to track transactions based on volume, revenue generated, and order value including refunded transactions. Product sales can be measured by the day or hour — invaluable for promotions and offers. It also allows you to identify your top customers and reward them.

Incompatible with your goals

Choosing a payment gateway is a long-term investment. Therefore, your payment partner should be a match for your goals. Some discerning questions to ask up-front are:

• Is this payment gateway trustworthy?
• Does this gateway have a track record of success?
• Does this gateway support our business model?
• Does the gateway allow integration with our systems?

PayTabs is a gateway made for service providers trying to enter the MENA region. We’ve been in business since 2014, helping merchants of all sizes across 49 industries. We allow integration across mobile, iFrame, and e-commerce plugins under 24 hours.

Hidden or junk fees

Many online payment gateways have hidden fees. They also use confusing jargon and pricing models. The best payment gateways have transparent, cost-effective pricing.

Junk fees are another hidden cost to watch out for. Common examples of these include:

• Early termination fees
• Monthly minimum fees
• Statement fees
• Customer service fees.

You shouldn’t have to pay to get a monthly statement or talk to customer service.

Let us help you

Start your entry into the MENA market with the best payment gateway. Contact us and talk to one of our representatives today.

Kasun Pathirage
– Kasun Pathirage is an expert freelance content writer for B2B fintech and SaaS brands.
Learn more about his work via his website: verbauream.com.

3 years ago
4-solid-tips-to-help-choose-the-best-online-payment-gateway
Mohab Growth Hacks 0

A payment gateway is one of the most important components of an ecommerce venture. With a secure payment gateway, you can ensure the safety of your business as well as of your clients’. In these tough times, payment gateways have become a soft target for scammers and hackers. If your business is dependent upon online payments, then it is necessary to take proper steps to ensure the robustness of these online payment systems. There are several criteria which should be kept in mind when choosing a secure online payment gateway. Listed below are some tips will help you find the right one.

Protection against Cyber Attacks:

A secure payment gateway is the one which can protect yours as well as your clients’ data. With the growing scope of online shopping, the segment come under phishing and spamming attacks. It is important that your payment gateway is able to provide protection against such attacks. This is generally ensured by employing latest technological tools to defend your data from being stolen. These cyber attacks may not only impact your data but also your reputation in the market. Therefore, it is essential to pick your online payment gateway after thorough consideration.

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

Pay Attention to Chargebacks:

Another metric which can help you gauge the impact of a secure payment gateway is the number of chargebacks. A company generally faces two types of chargebacks — distribution chargebacks and consumer chargebacks. Both are detrimental to the business in long run. Distribution chargebacks are generally more difficult to recoup. The ideal solution is to minimize the incidences. Consumer chargebacks, on the other hand, are generally caused by unscrupulous clients. If they are making payments through stolen or otherwise ill-gotten means then such payments are bound to fail, leading to chargebacks. You should choose an online payment gateway which is able to minimize chargeback related issues.

Proper Integration:

Incorporating an online payment gateway on your website is no longer a tedious task. However, you should still ensure that the integration of the payment gateway is seamless and secure. This is important to provide fast and reliable experience to your clients. You should also ensure that various software used by you such as online store software, shipping database and cart software are compatible with your online payment gateway system. Any technological loophole can make your system vulnerable to cyber attacks and threats. Your software should also be compatible with your website and hardware to provide smooth experience to your clients.

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

Secure Data Storage:

Another important feature to look for in an online payment gateway is the data storage process. However, data storage is an expensive proposition. You may have to limit the amount of data that may be stored. You should properly carry out the cost benefit analysis of data storage facility provided by your online payment gateway system. Payment gateways like PayTabs provide optimum solutions in this regard. Furthermore, the system should also have proper checks and balances in place to weed out dubious transactions. These solutions should use technologies such as fraud scrubbing and anti-theft software to enhance their credentials and provide the best possible services.

Also Read:9 Things to Look For In a Payment Gateway

3 years ago
top-5-signs-that-youve-outgrown-your-payment-service-provider
Mohab Growth Hacks 0

Every online business needs a reliable and trustworthy payment service provider to reap profits and bring in more traffic. It forms a crucial part of the business’s structure. As it allows them to generate revenue and ensure the liquidity of their concern. However, if your payment service provider is not able to keep up with the growth of your business and changes in the technological environment, it may be time to reconsider your partnership with your provider. Here are some of the top signs that you need to upgrade your online payment system and provider.

  • No Regular Updates:

Since an online payment system is critical for any business, it is important that your provider offers you the latest services. Apart from the range of services, it is also imperative that your provider upgrades the system to provide smooth services. As online payment systems are highly technological in nature, it needs to evolve with changes in circumstances. However, if your service provider does not provide such updates on regular basis, it is time to change your provider. The slow response rate may also hamper the effectiveness of your payment system, causing undue inconvenience to your clients. Smooth communication and updates are essential to keep the system running in a perfect manner. So that your clients get the best possible service.

  • No Customization:

Customization is essential to ensure that your online payment system is in line with the requirements of your client base. And your existing service provider may be offering the same payment solution to all their clients. However, this type of off-the-shelf payment system is not likely to be the best for your business. It is essential that you properly identify your market and your customer base. Then design your online payment system to meet their distinct requirements. Further, your service provider should also be dynamic enough to change the payment system in line with the changes in your business. If your online payment service provider is not able to customize your system to suit the changed environment, then you should consider changing your provider.

  • Complicated Process:

A payment system is a complex system, consisting of several steps. However, you need to ensure that the process is quick for your customers. In order to achieve these contradictory goals, you should carry out periodic testing of your system, and make sure that it is not unduly complex for the customers. The system may also get complicated over a period of time due to alternations or addition of certain features. Thus, the payment process should be designed in such a manner that it can be upgraded in future without making it cumbersome.

  • Low Monetization Options:

New payment systems are cropping up every day. And they are offering multiple payment options to make the shopper’s experience easy and enjoyable. So, if your service provider is not able to provide you multiple payment options, it is highly likely that even your loyal customer base will eventually migrate to other businesses. Essentially, customers should have the flexibility to choose from different payment options to complete their transactions. Further, the service provider should also offer you the option to monetize your engagement. This generally works through a revenue sharing model, where you are paid a certain percentage of the volume of business generated. If your service provider is not offering you any such service, then you might want to change your provider.

  • Limited Support:

Today’s dynamic businesses need different options and if your provider is not able to provide such options, then your clientele may suffer unnecessarily. Also, your service provider should be able to offer timely and adequate crisis resolution support. Multiple channels should be available to reach your provider in case some issue crops up. Ideally, you should also have emergency access to a support system. Which goes above and beyond their usual crisis resolution methods. A smooth-running payment system is essential for any business and even a single problem may cause a big dent in its market reputation. So, if your online payment service provider is not able to provide you reliable support, it is time to move on.

All in all, a robust online payment system forms the backbone of any modern business nowadays. So, it is vital to choose a payment provider that can grow with you and meet your changing needs. So that a smooth experience is always guaranteed for you and your customers.

3 years ago
5-tips-to-make-your-online-payment-process-easier-for-customers
Mohab Growth Hacks 0

Just like a brick and mortar store, the success of an online business depends largely on the loyalty of its client base. In order to build and retain a loyal customer base, it is essential to streamline your business practices. And one smart way to do that is by providing an efficient and simple online payment process. By simplifying your online payment process, you can instantly lower the risk of incomplete transactions and abandoned shopping carts. So, check out these 5 tips to make your online payment system smooth and efficient.

  • Offer multiple options:

    The foremost feature of an online payment system is its flexibility. Internet based businesses should try to offer as many different online payment options as possible. The idea is to ensure that none of your prospective client leaves the site on account of not being able to pay. Debit cards, credit cards and online banking are generally the most widely used options for making online payments. However, you can go beyond that and offer more choices such as payment through online wallets. Further, even within the debit and credit card ecosystem, you can offer choice of different cards. However, after a certain limit, expanding your payment pipeline may not be cost-efficient. Therefore, it is important to fully analyze your target market to pick the best payment options.

  • Integrate seamlessly:

    The online payment modes should be seamlessly integrated with your website. The setting up of an online payment system also requires collaboration with a number of external partners. Hence, several factors will be at play. While it is not possible to have complete control over these factors, it is important that their features are adequately modulated to provide a smooth experience to your clients. Such consistency is also useful in raising brand awareness and brand loyalty. Integration is also important to minimize the risk of online frauds and scams.

  • Ensure privacy and security:

    Apart from making the online payment process smooth and fast, it is important to ensure the safety of data as well. Online payment systems are highly susceptible to scams and phishing. Since these transactions involve sensitive data, it is vital that the customers are assured that their information will remain safe. For this purpose, you can obtain a Secure Sockets Layer or SSL certificate for your website. Display of this certificate on your website will provide a sense of security to your clients. A PCI-compliant website is also an assuring signal.Further, you should keep your software updated to ward off any phishing attack. Use the latest versions of antivirus and anti-scam software.

  • Allow feedback and fix errors:

    Even a simple payment gateway may become more efficient with just a few tweaks. When you design your online payment system, you should try to keep it simple. A simple design ensures that you can make changes to it without any hassle. Your online payment system can also allow feedback from clients. Such feedback can provide interesting insights and may help you in designing an even better system. A simple payment system will also allow timely rectification of any shortcomings or errors.

  • Collaborate and outsource:

    Online payment systems usually follow complex processes. While you can design your own payment system, it is generally more efficient to outsource the entire ecosystem or some important parts of it. You can collaborate with online payment processing services providers for this. These providers offer a wide range of services, such as the ability to process different payment methods and dealings in multiple currencies. These providers also use sophisticated tools to ensure speedy payment processing, making your business more liquid and efficient. By collaborating with reliable and reputed online payment services providers, you can provide the best payment system to your customers.

So, keep the above guidelines in mind, to provide your clients with a super efficient online payment process, which is not only fast and smooth, but also reliable and safe. These features can help you enhance your revenue in a significant manner.

Also Read: How PayTabs is making it super easy to manage your online store’s payment process

4 years ago
top-tips-to-become-a-global-retailer
Mohab Growth Hacks 0

Information technology has made the world a smaller place indeed. Businesses are now able to expand their horizons beyond national boundaries easily. However, there are still certain roadblocks which may prevent your business from realizing its true cross-border potential. Going global not only allows you to offer your products and services to a larger clientele but also lets you achieve economies of scale. In order to ensure that you undertake this endeavor in the right manner, here are some top tips to help you expand your business globally.

International Currencies and Payments:

As you prepare your business to transact internationally, you should ensure that you are able to transact in foreign currencies. Apart from fulfilling legal requirements, it is also advisable in terms of logistics. You can take the help of dedicated online payment processors, which may get your global financial platform up and ready in a matter of minutes. Reputed online payment processors may provide you with a host of other services as well, such as centralized dashboard for managing your transactions and analytical services. There are several factors you should keep in mind while choosing a payment processing service provider. Apart from having solid reputation in the market, the service provider should also be able to provide cutting-edge technological support and have the ability to accept a wide range of payment methods.

Sort the Legal Issues:

Every business is governed by a set of rules, the law of the land. When you are a domestic company, you only need to comply with the laws and regulations of that country. However, when you expand internationally, you need to ensure that your business does not breach the laws of any country you have customers in. Such rules and regulations may pertain to the form of business, the quality of the goods and services provided and foreign exchange remittances. Various online payment processors have made it easy for businesses to transact in foreign currencies, however, businesses still need to follow the laws and guidelines with regard to foreign currencies. Further, many countries prohibit trade in certain goods and services, and so, make sure you are not flouting any such rule.

Overcome the Cultural Issues:

Different countries not only have different legal environments, but distinct cultural climes as well. Such differences mean that you may have to redesign your marketing message to suit the tastes and traditions of your target markets. You should know your target markets well enough to understand their undertones and nuances. Moreover, you may also need to customize your product descriptions and packaging so that your target market can understand the message correctly and conveniently. You should be extra cautious about ensuring that your products and services are culturally sensitive and do not offend the sensibilities of the local people.

Shipping and Logistics:

The two main challenges related to international sales are the modes and costs of shipping. You can choose land, sea or air shipping of your products, in accordance with your clients’ requirements. While air shipping may be faster and safer, it is also significantly more expensive than other modes. Consequently, you need to reconcile the speed and costs of shipping products. You may also adopt flexible approaches where you ship products based upon the choice made by your clients. You should also ensure that your shipping method and other logistics meet the legal requirements and other stipulations.

Costs and Pricing:

When you start selling your products internationally, you need to calculate your prices for each market separately. This is important to ensure that you adequately cover all your costs. You may also need to adjust your shipping charges accordingly. However, for the ease of the business, it is recommended to average out the costs and employ global pricing for your products. This will help in making your business processes simpler and efficient. However, you may offer different options regarding the mode of shipping etc. to your clients and calculate the final price accordingly.

Global selling may seem like an onerous task in the beginning. However, by following a few guidelines, you can ensure that you make judicious use of your resources. The above tips will help you in covering all the bases and running your business smoothly.

4 years ago