Small business owners face many challenges, and one of them is choosing the right payment gateway. Payment gateways are online platforms that enable you to accept electronic payments from customers all over the world. They provide a secure and straightforward payment process that is essential for any company that wants to expand its online presence. There are so many payment gateway providers available, making it challenging to choose the right one.
1. Understand Payment Gateways
Payment gateways play an essential role in online transactions by connecting customers’ credit and debit cards to the website of the business. These gateways facilitate the transfer of funds from the buyer’s account to the seller’s account. They ensure that all transactions are secure and processed efficiently.
2. Types of Payment Gateways
There are two types of payment gateways: hosted payment gateways and integrated payment gateways. Hosted payment gateways allow customers to be redirected from the business’s website to the payment gateway’s website for payment processing. Integrated payment gateways allow customers to enter their payment details on the business’s website, and the payment is processed through the gateway.
3. Security of Payment Gateways
Small businesses must prioritise security when choosing a payment gateway provider. Make sure the gateway is PCI compliant and provides encryption and fraud protection. This ensures that customer payment information is kept safe and secure during transactions.
4. Fees and Charges
Payment gateway providers usually charge a transaction fee, which is a percentage of the transaction amount. Some also charge an ongoing monthly fee. It’s important to look for providers that offer transparent pricing, with no hidden fees or charges.
5. Gateway Integrations
Small businesses need payment gateways that integrate with their eCommerce platforms or website builders. Some of the popular eCommerce platforms are Shopify, WooCommerce, and Magento. Look for payment gateway providers that offer integrations with these platforms to make the checkout process seamless and smooth.
6. Customer Support
Choosing a payment gateway provider that offers excellent customer support is vital. Small businesses need providers that offer 24/7 customer support, with multiple channels such as email, phone, and live chat. Make sure they respond promptly to inquiries and provide adequate support when needed.
What we recommend
For a first-time online trader, Stripe is hard to beat. It is incredibly easy to set up and they charge 1.5% + £0.20 per transaction. If you already have a physical location, you’ll usually receive better rates by calling your card terminal provider.
