There will be a 15% increase in the value of online payments between 2020 and 2025, and by 2022, non-cash payments will account for almost 80% of all transactions in the United States. Digital and credit card payments are simplified through the use of payment gateways. They operate as the electronic equivalent of a cash register.
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The way that payment gateways function is explained.
Whether you’re making a purchase online or in person, a payment gateway is a crucial part of the transaction.
The front-end mechanism of a transaction gathers, transmits, and approves client data in real-time, sending it to the bank of the merchant for processing.
Principal Payment Gateways
In general, there are three distinct payment gateways:
- Payments are on-site.
- On-site check-out, with payment made off-site.
- Redirects
Selecting a Trustworthy Payment Gateway
Security is the most important factor to weigh when deciding on a payment gateway
A majority of internet users (55%) rank security as their top concern when shopping online, and almost half (49%) would prefer to see more obvious signs of security from retailers.
Make sure you’re dealing with a trustworthy payment system by asking the following.
How do your clients typically pay?
What methods are your consumers most comfortable utilizing to manage their financial transactions?
Fewer issues and security hazards will arise if you stack your payment gateways and provide a payment type they may utilize.
Will you be able to use the payment gateway with your current system?
It’s crucial to think about how effectively a payment gateway’s application programming interfaces (APIs) will connect and interact with any existing technological platforms you employ before making a final decision.
How much does the gateway charge to process a payment?
Internet shopping fraud can eat into your profits. It may not be worthwhile to invest in a payment gateway if the extra money you spend on security measures and fraud detection more than cancels out the lower expenses of using that gateway.
Think about the cost of security and how it relates to the payment gateway price.
Just how safe is their encryption system?
You should only collaborate with PCI-compliant businesses to guarantee safe encryption. The PCI Data Security Standard (DSS) is a set of regulations designed to ensure the safety of the digital sphere.
Make sure the gateway you’re considering is PCI-compliant before you commit.
How reputable are they, exactly?
You should choose a reliable payment gateway, as almost half of the clients expect to see obvious security markings at checkout.
To keep customers from abandoning their shopping carts or leaving for more obviously safe sites, you should avoid using payment gateways with less than outstanding security reputations.
How adaptable is the merchant account?
Because there are so many different kinds of customers and so many different ways to accept payments, adaptability is essential in a payment gateway.
Examples of Payment Gateways
The seven most popular gateway service providers are as follows:
PayPal.
Because of its stellar reputation among clients and the variety of gateways it offers, PayPal is frequently used as a redirect payment gateway.
Either a free PayPal-hosted payment gateway at checkout or a service offering further checkout customization tools for a monthly subscription are both part of PayPal’s Payflow gateway.
Square.
Square is a company that processes credit card payments and offers a payment gateway. Significant progress has been made by the corporation, which reported $46 billion in gross payment volume in the fourth quarter of 2021.
Despite charging more for manual transactions, Square is a good option for small businesses that require a way to accept credit cards in person.
Stripe.
A well-known supplier of payment gateways, Stripe specializes in platform-based payments, SaaS, non-profits, and mobile e-commerce.
Stripe can also process transactions for businesses with high volumes. For instance, Lyft’s mobile fleet of over 700,000 drivers is powered by Stripe.
Apple Pay.
Merchants may accept payments with biometric authentication methods like Face ID and Touch ID thanks to Apple’s payment gateway service. Consumers that choose to use a digital wallet to keep track of their money are the primary target audience.
Amazon Pay.
With over 200 million Prime members across the world, Amazon Payments is a highly sought-after payment gateway used by many successful businesses.
Amazon Pay is also adaptable, with a number of downloadable plugins (some of which are compatible with BigCommerce).
Ask our seasoned professionals anything you want to know about payment gateway solutions.
