Intelligent Payment Solutions – Choosing the Best Options for Your Business

In the past, there was a scarcity in the number of online payment gateway providers. Fortunately, with technological advancement and the evolution of the digital commerce industry, this is not the case anymore. More options have become available for businesses and consumers and setting up an online payment for products and services is now readily available and accessible. 

According to experts, about 86 percent of consumers make online purchases using debit or credit cards and about 60 percent of these consumers favor online payment methods when making purchases. 

eCommerce Payment Gateway – What Is It?

A payment gateway is used by many establishments and businesses nowadays. This is a software application that enables the secure transfer of payment information like credit card information from a website to a payment network for eCommerce payment processing. Once payment is successful, it returns transaction details from the payment network to the merchant website. 

Even though online transactions appear to be straightforward and quick, it goes through several processes. These processes work together to move funds securely and smoothly from the buyer to the seller. 

How Does this Gateway Work?

The main goal of payment gateways is to make payment processing secure, hassle-free, and effective. This method does not deal with transmitting payments. Instead, the payment gateway will approve the funds that will be transferred to the seller. The process is done in a safe as well as a secure way for the buyer. 

Payment gateways comply with PCI compliance standards, which incorporate various security techniques to prevent fraud. So, how does it work?

1. The process begins once the customer places an order on an eCommerce website. The customer will fill in all necessary information for their chosen payment method. 
2. The web browser will then start encoding data and this will be sent between the website and the merchant’s web server. 
3. The gateway will send the transaction information to the payment processor that is utilized by the merchant’s acquiring bank. 
4. The transaction data is sent by the payment processor to a card affiliation. 
5. The credit card’s issuing bank will see the request for approval and will either deny or approve the request. 
6. The processor will then forward the approval to the gateway. 
7. Once the gateway, acquires the transmitted approval, it transmits it to the site to process the payment request. 
8. Once the merchant has completed the transaction, clearing transactions will be activated.
9. Once done, the issuing bank will change the hold to a debit. This process permits a settlement with the merchant’s securing bank. 

Factors to Consider when Choosing Intelligent Payment Solutions

If you are considering incorporating an effective payment solution in your business, there are various things that you will need to consider. 

• Choose the Appropriate Payment Flow – As your business grows, your intelligent payment solution should be able to scale along effortlessly. Thus, you need to consider the appropriate payment flow that would fit your business needs and size. You can opt for a site with an integrated payment form that sends data to a secure gateway, an option for an embedded iFrame or a redirect option for payments, or an escrow system. 
• Making Your Customer Feel Secure and Safe – Even if your business is small and still in the startup phase, you should always make your customer feel safe and secure especially when it comes to payment processing. Also, it is important to make sure that your payment gateway provider is certified for complying with information security standards like PCI-DDS.  
• Choosing Security and Adaptability – It is important to choose your products wisely. You should consider an adaptable payment solution while still keeping security in mind. If you are new to this method, you should consider seeking help from experts to ensure that everything is set up properly. 
• Ensure Effective Transactions – Customers often abandon transactions if they find the payment method is too complicated. So, to prevent the loss, you should opt for payment gateways that offer hassle-free and effective transaction methods. 
• Consider Fees and Service Requirements – The pricing of payment gateways may differ depending on the type of transactions the business conducts, the business sales, transaction frequency, market served, and revenue consistency.  
• Make Checkout Easy and Available on All Devices – It cannot be denied that more and more people are using their mobile phones to make various transactions. Mobile devices may come in various forms and platforms. That said, you should make sure that your payment gateway is available on all devices. 
• Easy Integration Process – You should consider a payment gateway that offers an easy integration process as this will not slow the payment process when transactions are made on your website. 
• Multiple Options and Features Available – Since customers often have different preferences when it comes to making payments, you have to consider a payment gateway that offers multiple options and features. For instance, you should make sure that different currency options are available with an easy and seamless process in currency conversion. Also, your payment solution should be able to accept different debit cards and credit cards, as this will offer flexibility and more options to your buyers. 
• Customer Support – Another important factor to consider when choosing an intelligent payment solution is customer support. In case, transaction errors occur, support should be readily available to assist your customers. Resolution should be provided in a prompt and timely manner.