All you need to know about Integrating Payment Gateways to your E-Commerce Website
Online shopping has witnessed a surge since inception, with an increasing number of people willing to shop from the convenience of their homes. The e-commerce space is seeing greater competition as companies vie for a larger share of the pie.
Although most companies focus on digital presence and visibility, many of them find it challenging to convert views and visits to actual sales. One reason for this is because some e-commerce websites do not have integrated payment gateways.
What is a payment gateway?
A payment gateway is a software application that authorizes payments. This tool connects your e-commerce website with the bank by securely exchanging payment details, and thus, enables customers to pay on the site itself. This allows quick and easy conversions for the business.
Why you need an integrated payment gateway
Not only volumes but also the transaction size of e-commerce is growing rapidly. In this context, it makes sense to ensure that customers pay on your website directly.
Not having an integrated payment gateway can lead to loss of customers as many tend to abandon their carts when not allowed to finish their purchase on the same website.
Further, setting up a secure payment gateway can protect you and your customers against fraud and lead to a high retention rate. On the other hand, unsafe payments can drive away customers for good.
How do payment gateways work?
As a starting step, a customer makes a payment on your e-commerce website or app.
The details of the payment are then securely sent via the gateway to the bank.
The merchant account in the bank then processes these details.
The customer is then informed whether the payment was successful or failed.
Finally, if the payment was successful, the amount is credited to the merchant account after deduction of any processing charges.
How to integrate a payment gateway to your website
Integrating a payment gateway to your e-commerce site is simple. First, you need to open a merchant account with your preferred bank. Second, select a payment gateway that suits your requirements.
Here are some factors one needs to consider before selecting a payment gateway:
Ensure that the integration and usage of the payment gateway is easy and scalable.
Check how speedy the transactions are and how flexible the gateway is to your requirements.
Review processing charges and see if the provider is economically viable for you.
Make sure the payment gateway can provide solid security. For example, check if it has the PCI DSS certification if you want to allow credit card usage.
Ensure that the provider caters to multiple languages, currencies, platforms, geographies, and even payment methods.
There is a wide range of options available among payment providers, with PayPal, Authorize.net, and Stripe being the most popular. An integrated payment gateway can go a long way in retaining your customers and reducing drop-out rates on checkout.
Choose which payment gateway is right for you and more importantly, for your customers.
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