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Key payment data points that your business should value

Tag: payment gateway

key-payment-data-points-that-your-business-should-value
Mohab Super Merchants 0

It is important to take available information into account while taking any business-related decision. The use of correct and relevant data makes the decision more robust and efficient. However, many businesses have yet to understand the importance of payment related data. While payments are deemed to be a process, it is vital to understand that the information generated by them is immensely helpful in taking various business decisions and carrying out payment processes.

Here are some of the key payment data points which are highly useful for an online organization.

  1. Conversion Rates:

The main idea behind using key payment data point is to improve the customer experience. If the customers are finding the payment setup difficult to understand, then you should take a hard look at the payment processes. Chances are your procedures are too long or tedious for the visitors. Your payment data analytics may also show a large number of people leaving your payment sign up page midway, prompting you to re-evaluate your sign-up

 

  1. Rate of Authorization:

This tells you the success rate of the attempted transactions. As in how many transactions were completed. The lower rate of authorization implies that the payment process met certain roadblocks on the way. There could be many reasons behind that. For example, the authorization might not come through if the client does not have adequate funds in their accounts or their card may have reached its limit. Other reasons include expiry or misuse of the card. This metric can automate the process, making it more efficient.

 

  1. Ratio of Chargebacks:

Chargeback rate is one of the most important metrics for a business. Higher chargebacks may indicate a wide range of issues, making it imperative for businesses to pay proper attention to this payment data point. You should look at the occurrence of a chargeback to determine the root cause. Prompt information about a chargeback may allow you to look into its reasons quickly. Additionally, you should find out why it happened. Once you have identified the reason you may work on rectifying it.

 

  1. Reconciliation of Payments:

Another important exercise needed to be carried out by businesses is to look at the reconciliation of the payments. In simple terms, it refers to the time taken for the eventual cashing of a transaction, that is the time taken by the money to actually hit your bank account. Proper knowledge about this metric can help you in designing an automated process, leading to better liquidity. The reconciliation process can also be automatized for more robust payment data analytics. With the help of this metric, you can identify clients who are prone to late payments, letting your design better collection policy.

 

  1. Customer Satisfaction:

It is another important consideration. You should know the preferred methods of payment for your clients. This data can be easily collated from the software you use for processing payments. If you use multiple sources of payments, then you can analyze the data to understand the pattern. You can also segregate the data based on various metrics such as markets and products. This insight can help you to tweak your processes accordingly. With such changes, you can retain your customers, and at the same time, attract new ones.

Conclusion

With these key data points, you can improve every aspect of your payment strategy of our online business.

Also Read: Key Points to Know Before Integrating a Payment Gateway into Your Website

3 years ago
understanding-the-difference-between-a-payment-gateway-and-a-payment-processor
Mohab Payment Orchestration 0

Businesses now need to deal with online transactions more than ever. For this, you need to set up an online payment processing system that is safe as well as efficient. Such a system can comprise of several service providers. So, it is important to know the precise services provided by each provider. For starters, you need to distinguish between a payment gateway and a payment processor. While both of them provide online payment related services, they have very distinct areas of operations. So, read on to better understand their differences and run your business with confidence.

What is a payment gateway?

A payment gateway is a tool that helps process the payment between the client’s bank account and the business’s bank account. The main function of a payment gateway is to secure the transmission of online payment data from one end to another. These service providers are also responsible for authorizing payments for card-not-present transactions. A gateway is mainly useful for processing online credit card payments.

In simple terms, a payment gateway is a like a middleman between a client and an online business. When a client provides their payment details to an online business, then the gateway sends this data to the payment processor for further action.

For an online business, a payment gateway can provide a wide range of services such as ensuring the safety of personal data, uninterrupted services, and the ability to accept multiple payment options. Furthermore, a payment gateway may also enable your business to accept different currencies, thus enabling international transactions. While selecting a gateway for your business, you should pay proper attention to the service offered as well as the various fees and commissions charged.

Also Read: What are the benefits of working with a payment processor?

What is a payment processor?

A payment processor is generally a financial institution which carries out payment processing services for online businesses. Such payment processors generally enjoy collaboration with other companies, which have direct interaction with merchants or consumers. A processor acts as a connecting node between a payment gateway and a merchant’s account.

The main task of a payment processor is to facilitate the transfer of payment related information and to keep the data secured. A processor collects the data pertaining to the transaction, validates and executes the instructions, and then deposits the money into the merchant account. It concludes the cycle by informing the payment gateway about the final outcome of the transaction.

There are a wide range of payment processors available in the market today. It is important to pay attention to different criteria while selecting an appropriate payment processor for your business. A processor should not only provide swift and smooth transfer of funds, but it should also be able to ensure that sensitive data transferred remains safe and secure.

Also Read: The 4 Step Procedure for an Easy Payment Gateway Integration

Integration of payment gateway and payment processor

For an online business, it is important to engage the services of both a payment gateway and a payment processor. In order to complete the cycle of online payments, the services of both are required in conjunction with a merchant account.

Essentially, a payment gateway is required to receive the payment related details from the client. Then pass the information on to the payment processor, which carries out the rest of the transaction and sends the status back to the payment gateway.

These service providers should be chosen carefully after taking your business’s specific requirements into account.

3 years ago
what-are-the-key-components-of-a-custom-payment-gateway
Mohab Ecommerce 0

Choosing the right payment gateway is crucial for an online business as these gateways can complete online transactions quickly, safely and efficiently. A robust payment gateway not only provides efficiency but also maintains integrity of the operations. There are several ways to incorporate a payment gateway into your system. You can choose to deploy a third-party payment gateway for processing your transactions or go for a personalized payment processing system. Each system has its own unique features, but a custom payment gateway can provide you with flexibility and efficiency which is unparalleled. Here are some of the key components of a custom payment gateway you should know about, to make informed decisions.

  1. Great Customer Experience:

    A custom payment gateway should be designed in such a manner that it maximizes the customer experience. The payment process should ideally have minimal number of steps to follow. It should also be intuitive so that the transaction proceeds in a smooth manner. You can also enhance the consumer experience by using well-known logos for different processes. The process should also be transparent so as to foster a sense of security and reliability in the clients. You can also enhance user experience by offering a wide range of payment options. Such flexibility will allow your users to maximize their utility and create brand loyalty.

  1. Sufficient Security:

    While speed and simplicity are desirable qualities in a custom payment gateway, it is equally important to ensure the safety factor of the transactions There are several security certifications available which will be helpful in providing a sense of safety to your clients. Ideally, your system should be PCI compliant. Further, you should also constantly upgrade your technology to effectively counter new spam and cyber-attack threats. End to end encryption of the transactions will ensure that the data transmitted remains safe and secure. Additional precautions should be undertaken to further secure personally identifiable information such as social security number and date of birth.

  1. Freedom of Customization:

    One of the biggest features of a custom payment gateway is that you can design it the way you want. You can add features while taking out some of the other complexities which you do not require. If you have a mainly subscription based business, you can allow for recurring payments on select dates. This feature will take away the hassle of recurring billing and will make the process more efficient. If your business deals with overseas clients, then it will make sense for your payment system to accept a wide range of foreign currencies. You may also want to display your payment system in different languages for making it easy to follow for your clients.

  1. Sensible Fees and Charges:

    Most payment gateways are able to provide their services at affordable rates due to economies of scale. However, the various benefits provided by a custom designed payment system can justify its higher costs. If planned properly, you might be able to reduce these expenses on a custom payment gateway as well. You should carry out extended and informed deliberation with various financial service providers to ensure that you optimize various charges and fees. Further, you should also pass down some of the benefits to your clients so as to build a solid customer base.

  1. Modular Feature:

    Setting up a custom payment processing system can be a daunting task. There are several variables to be taken care of, including the number of processors to collaborate with. Ideally, you should work with multiple processors to minimize the possibility of outages. This setup will also provide you with leverage in terms of negotiation. If you are building a custom payment system, then you should pay adequate attention to security features as well. Further, a foolproof process should be set up for handling arbitration, chargebacks and disputes. The process should be such that your clients do not face unnecessary hurdles while getting their grievances addressed.

All in all, custom payment gateways can indeed help you optimize your business processes. You can also ensure that your clients have the smoothest possible experience by incorporating features specific to your business. The process should also be flexible so that it can handle any changes in your business model.

4 years ago
top-reasons-why-your-business-should-accept-payments-online
Mohab Ecommerce 0

For a business, one of the most important tasks and objectives is to maintain the profitability and liquidity of the organization. It is important to ensure that you are able to receive your dues in a prompt manner. This can be made easy by adopting the right online payment methods. If your business is able to accept online payments, then you can convert your receivables into cash with relative ease. Online shoppers also prefer to make payments through digital modes these days. Here are some of the advantages of online payment systems.

Collaboration with Expert Online Payment Providers: While you can set up your own online payment system, teaming up with specialized online payment processors has many benefits. There are certain points to keep in mind while choosing your online payment provider. They should possess state of the art infrastructure so as to offer efficiency and security to your clients. It is preferable that the system is also equipped with the latest anti-scam software to provide protection against cyber-attacks. Further, you should also pay thorough attention to their fee structure. There should be no element of surprise for you or your clients. A reputed gateway will disclose all fees and charges upfront. If the provider charges fee on volume basis, you should ensure that it is reasonable at all the levels. Such collaborations can provide you with specialized services, making your business more efficient.

            Also Read: 7 Tips for Safe Online Transactions

Easy Setup: The process of accepting online payments is not complicated at all. The setup takes only a short while and offers immense convenience. You can easily integrate this payment system with your website and online store. The integration process may differ from one online payment gateway to another but the fundamentals remain the same. The registration process is also simple and quick, requiring you to provide some essential information. There is generally minimal paperwork involved. Once the set up is integrated, you are only required to take up periodical maintenance sessions. Now, you are all set to accept online payments from your clients.

Affordable: Thanks to consistent improvement in technology, online payment systems are becoming more affordable with time. Most online payment processors now offer accounts with zero setup fees. This feature adds on to the efficiency of your business. As more and more businesses are signing up for online payment processing systems, the transaction fees are also coming down, thus rationalizing the operational costs. In many cases, the online payment processor may also agree for a lumpsum payment, irrespective of the volume. This deal may be ideal for fast-growing businesses. With declining costs, the benefits of online payment systems outweigh the shortcomings. Businesses now get to boost their margins by using these cost-effective online payment solutions.

Widen Your Market: Online payment solutions allow you to increase your turnover and reach a wider market. With the help of these gateways, you can service overseas markets as well, since you can accept foreign currencies. Online payment solutions facilitate the use of international credit and debit cards, thus increasing the reach of your products and services. You can attract more customers with online payment facilities and gain a competitive edge over your peers. You can offer more payment options to your clients, allowing them to spend their money without hassle. Further, online payment systems are known to encourage impulse purchases. Such purchases can add significantly to your bottom line.

Better Customer Satisfaction: By introducing online payment facility, you can greatly enhance the shopping experience for your clients. They will have more choices when it comes to making payments for your goods and services. They will also be in a position to plan their budget better, as they can use their credit cards instead of making upfront cash payments. The faster delivery of goods is another benefit, since online payments are processed faster than offline payments. Online payment systems generally come with inbuilt security features, which increase the element of trust and safety.

To conclude, accepting online payments has become essential for all businesses, especially after the pandemic, as social distancing will continue for some time to come. And with easy set up and operations, this feature can help you boost your revenue and profit too.

4 years ago
Adding-A-Payment-Gateway-to-Your E-Commerce-Site
Mohab Growth Hacks 0

Every e-commerce business needs a reliable payment gateway to serve its clients and to boost its revenue. There are various parameters which define the robustness and effectiveness of a payment gateway system. Some of these metrics are speed, accuracy and security. In order to make sure that your business and clients get the best of the services, here are some tips you may use while adding a payment gateway.

  1. Recurring vs. One Time Fees: The cost of implementing and operating a payment gateway is an important parameter which needs to be considered in the decision phase. Different payment gateways charge their fees in different manners. Some have upfront onetime costs while others charge recurring fees, generally based on volume. Yet other payment gateways may practice a mix of these charges. It is important that you take your time to fully analyze the impact of such charges on your bottom line. Also, if the charges are levied on percentage basis, then consider the overall impact as this kind of charges generally add up pretty quick once your business takes off.
  2. Pay Attention to Purchasing Funnel: Analyzing the purchasing funnel means that you take cognizance of the number of steps needed to get the payment confirmed. While it is important to ensure the security and certainty of the payment made, a large number of steps are rather off-putting and may prompt clients to walk away. Similarly, your payment gateway should only seek appropriate amount of information. It is imperative that you do not use payment process as a means of collecting data about your clients. You should also pay attention to the integration of payment gateway with your website so that your clients have a seamless experience and are not subjected to repetitive steps. It may take you several attempts to determine an optimal purchasing funnel for your business.
  3. Consider the Add-Ons: Payment gateways come in different shapes and sizes. Most of these gateways also provide you with opportunities to customize them for your optimal use. Some of the service providers offer automatic billing support which may or may not be important for your business. Since these add-ons come with a price tag, it is essential that you consider these options and compare their benefits with associated costs. Another point of customization is to be able to handle foreign transactions. If you are looking to expand your business beyond your national boundaries, then you should seriously consider getting this feature for your payment gateway. It is generally surmised that the clients appreciate such additional features which allow them to complete their transactions smoothly.
  4. Diversify: Since the payment process involves providing sensitive information, it is important that you pick your payment gateway carefully. It is essential that you analyze the reputation of the service providers to ensure that their offerings work smoothly and without excessive downtime. Further, it is important that your payment gateway provides security of the transaction and the data. These factors should be supplemented with the ease of carrying out the transaction and saving time. It should also be ensured that all the legal requirements are fully complied with. This is especially important if you carry out cross border transactions and deal in foreign exchange.
  5. Keep it Simple: While it is tempting to keep adding various features and options to the payment process system, the better strategy is to optimize such addons and the simplicity of the system. The checkout process provided by your payment gateway provider should be fast and simple. There should not be excessive forms or columns to fill in order to proceed with the checkout. Further, the payment options may also be limited so that their proper security and robustness is assured.

The choice of a payment gateways services provider is highly crucial. Now, that there has been massive proliferation of cyber-attacks, it is vital that the sensitive data shared by your clients is secured. Apart from this main requirement, the checkout process should be tailor made to meet your and your clients’ requirements. It is important to have adequate number of payment options while also offering additional features such as the ability to check out as a guest.

4 years ago