Mistakes to avoid while choosing a payment gateway for e-commerce business

As the world is experiencing the privileges of digitalization for fulfilling every materialistic demand, there is no denying the fact that a major part of this has been made possible by online payment solutions. People have readily accepted the innovation in the payment mechanism to make payment more simple and convenient. As a result, India’s digital ecosystem has seen a remarkable evolution in the past few years. For business, finance is the lifeblood, and to maintain the financial flow for the running operations, a robust payment gateway is required. Receiving payments on time helps in increasing the efficiency of the e-commerce business. Any sort of delay or transactional difficulties will hinder the cash-flow of the enterprise. Therefore, a business must integrate a perfect payment gateway to flourish in this dynamic market.

An effective payment companion helps to grow the business immensely.

Common Mistakes To Avoid While Choosing Payment Gateway

Online merchants still face a lot of complexities due to ineffective payment gateway solutions. The incompatibility of the partner gateway causes businesses great harm and they lose a big fraction of their sales. All this happens due to common mistakes at the time of selection, it is a fact that an incompatible partner is no less than a curse. In the long run, the business will exhaust itself without reaching its full potential if its payment system is lacklustre. Hence, here is an outline of a few critical mistakes that you should necessarily  avoid while selecting the payment gateway:

Not Paying Attention To The Hidden Fee and Charges

Yes, indeed, many payment gateways may not display a clear picture of rates and charges. Generally, the merchant gets attracted toward the payment processors which have lower rates compared to others. Apart from integration and a one-time setup fee, there is also a discount rate that is charged at every transaction. Also, there are different charges related to the transaction such as cancellation, settlements and withdrawals. Hence, it is recommended to be prudent while making any final decisions.

Having Limited Payment Options

The emergence of the digital world has empowered the customer with various payment options. A customer looks for his preferred payment method, which he chooses keeping into consideration several factors. So a gateway should have all the requisite payment channels for seamless payments. You must inquire about the channels they provide for payment, such as credit/debit cards, UPI, net banking, digital wallets, etc. Before registering with the payment processor,  you can access the test mode and clear all your concerns.

Untimely and Irregularities in Settlements

The settlement procedure follows certain guidelines and acts accordingly. The settlement process means to be completed within the stipulated time frame and thus helps to avoid any fraudulent activities from either side. The business needs a continuous flow of money to operate efficiently, any kind of delay or time break could hamper the business largely. The ideal settlement cycle is T+3 working days (T- day of transaction), so the gateways should work in adherence to this agreement.

Security and Protection Negligence Against Frauds

As e-commerce transactions become convenient, millions of customer shops regularly fill their shopping basket with products. Similarly, many fraudsters are waiting for opportunities to rob vulnerable customers. You will find many incidents related to online thefts and data infringement during the payment process. Be sure that the payment vendor ensures the application of all the security measures. It is also essential that the gateway blocks those fake customers who engage in unscrupulous activities. Generally, a payment vendor uses these security measures to facilitate seamless secure payment:

  • Data Encryption
  • Secure Electronic Transaction (SET)
  • Secure Socket Layer (SSL)
  • Tokenisation
  • Payment Card Industry Data Security Standard (PCI DSS) Compliance

Neglecting The Need For Assistance

Many merchants neglect the assistance policy post initial setup and thus suffer a lot in the future. Online business is full of uncertainties and faces too many complications due to technical failures. If you think you are going to sail through without any assistance, you could be submerged in the sea of frustration later on. Hence, find a suitable payment vendor that offers initial setup along with long term technical support. Also, it should offer transitional assistance around the clock.

Get Stuck With Unsuitable and Jagged Plan

Every business varies from each other depending on the needs and demand of their customers. All kinds of online business cannot be lined up in a single queue. Consider every viable aspect and then decide the plan accordingly, otherwise it will lead to extra financial burden and unfavourable results if you are dealing with a large volume of transactions and you have selected an incompatible plan. Further, it can also bring a lot of transactional failures and mismanagement. Consequently, this will make customers lose trust in no time.

Certainly, apart from the above-mentioned mistakes, merchants also neglect critical aspects of the business. A payment partner should be compatible with the business and act as a supporting hand in increasing reliability to provide favourable results in the long run.

payment gateway for e-commerce

With the emergence of digital payments, customers have also encountered online frauds and data infringement.

Things To Keep In Mind While Selecting Payment Gateway

Well, we came across the mistakes that should be avoided while opting for a payment gateway for an e-commerce business as we know how necessary it is to maintain adequate cash-flow to give extra thrust to business. Picking up a suitable payment partner adds extra value to the business. Technology has removed traditional impediments of the market. The right payment gateway acts as an interlinked bridge between the customer and the merchant. Here are a few essential things merchants must keep in mind while the right payment partner:

  • Select an effective and compatible gateway.
  • Time is money, have a note on processing speed.
  • Business is all about customer satisfaction, choose a user-friendly gateway with no complexities.
  • Must be clear and precise about the services and feel agreements.
  • Easy setup and simple integration process.
  • Effective fund management and rate of success.
  • Multiple payments alternatives with cross-border transaction facilities.
  • Essential features i.e security compliance, recurring billing, detailed reporting and invoicing.
  • Round the clock technical and transactional assistance.

Importantly, one simple trick that combines all aspects is customer satisfaction, everything revolves around the customer. As a business owner, you should take business decisions considering the customers’ perspective. If you get a perfect payment companion for your business, it will help in the growth of the business, provide incredible customer satisfaction, build reputation, gain consumer’s trust, and much more.

hinanaaz

I am a professional digital marketer & blogger, contributing content on various high-quality guest blogging sites. mail id: [email protected]