Image source: unsplash.com
The pandemic has pushed more entrepreneurs to sell products in online marketplaces. If you are planning to do the same, you can save money by enabling online payment on your site.
Online payment methods for websites offer several advantages to sellers and customers. They streamline business transactions even in the security of your home.
This article can help you get started adding online payment gateways to your website.
What are online payment gateways?
An online payment gateway is a service that authorizes payments on online marketplaces. Physical stores can also take advantage of this service for cashless transactions.
It serves as a portal to manage the flow of transactions between customers and merchants. For security reasons, online payment gateways use encryption to protect data.
When choosing a payment gateway provider, there are several factors to consider. You should also keep in mind the specifics of your business and your customers.
Below are some things to do before choosing a supplier.
Look closely at the prices.
Check the transaction limits for your desired provider.
Look at the merchant account options.
Keep mobile payments in mind.
Make sure your product type matches the payment solution you want.
Ways to integrate online payment methods
Integration with full PCI DSS compliance
If you plan to store or process credit card data, you should integrate payment methods in this way. Because you will be dealing with sensitive financial information, you will need to follow regulations.
You must adhere to the standards of the Payment Card Industry Data Security Standard (PCI DSS). To do this, you need to follow five steps:
Define your level of compliance.
Read the PCI Self-Assessment Questionnaire (SAQ).
Take and pass the Attestation of Compliance (AOC) exam.
Perform an external vulnerability scan by the trusted scan provider (ASV).
Send the required documents to the acquiring bank and to the card associations.
A hosted payment gateway works as a third party between you and your customer.
This means that this method forces customers to leave your website to pay. After the third party processes the payment, they redirect customers to your store.
The advantage is that the service provider performs all payment transactions. They also store client card data, so you don’t have to be PCI compliant.
But, you will have limited control over a hosted gateway. Customers may also not trust third-party payment systems.
Redirecting customers away from your site can also lower your conversion rate. It doesn’t help your branding and can impact your business in the long run.
Vendors use an application programming interface (API) to integrate this method into websites.
This is a piece of HTML code that implements a button on your checkout page. This button redirects customers to the third-party site.
This method can be useful for small businesses and local businesses.
Non-hosted or integrated method
In an integrated payment gateway, you will process the financial data of your customers. A third party service provider is not involved in the payment process.
This means that you will need to follow and adhere to PCI regulations.
It also means that you will store, secure, and perform an initial verification for each transaction. You can do this by installing a payment gateway solution on your website.
You can use a white label payment gateway or a pre-built gateway as a non-hosted solution. Below are some well-known solutions that you can use:
One of the advantages of using this method is that it can work as a source of income.
This is because with a non-hosted system, you can also be a payment service provider. This means that you can process payment transactions for other brands.
Another advantage is that it gives you full control over your payment transactions.
You can even adjust your payment system to your liking. You can tailor it to your unique business needs.
But, it is important to know that doing this can bring a technological burden. You need the right infrastructure to store transaction data and credit card information. This means that it takes a team of engineers to perform the integration.
Another disadvantage of using this method is that the integration can be tricky. Even more so if you want personalized features in your payment system.
This option can be useful for medium and large businesses. They are particularly useful for businesses that rely on branding and user experience.
Direct publication method
The direct posting method allows customers to shop without leaving your website. It is a simple integration method that does not need PCI compliance.
With this method, you do not store transaction data on your server. It is sent to the payment gateway and processor after your customer has made a payment.
This method has the same advantages as an integrated payment gateway. You can take advantage of branding and personalization features without PCI DSS compliance.
This method can be useful for businesses of all sizes.
There are several things to keep in mind when looking for a payment processor provider. Look for a solution that inspires confidence.
You should also opt for the one that supports multiple payment methods. It should also protect customers from fraudulent actions.
Keep these points in mind and you will have a solution that inspires confidence in customers.
This article does not necessarily reflect the views of the editors or management of EconoTimes.