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Common mistakes to avoid while choosing a payment gateway for your business. Explore the features to look for in the best payment gateway solution.
Payment gateways allow customers to use online payment methods when purchasing from merchants. They enable merchants to accept the payment, collect payment and customer information, and authorize the transaction safely. When it comes to choosing and integrating a payment gateway for online payments, third-party payment gateway providers, and transaction processing, one is prone to make mistakes.
What are the Common Mistakes to Avoid When Choosing a Payment Gateway?
Finding the right payment gateway is not an easy task for merchants. A payment gateway should authorize and capture transactions during ssalesale, refund , and void payments. For these functions, every merchant strives to offer secure, fast , and easy-to-use payment systems for their customers. The merchant, hence, experiences difficulties in finding the right solution to the problems their customers face in online payment processing. The choice of the gateway mainly depends on the requirements of the business and the prospective customers. As a merchant, what do you need to choose the right gateway for smooth business operation?
In this article, we look at the common mistakes that should be avoided while choosing a payment gateway that integrates with your business.
1. Not Considering Local Payment Preference
Does your payment processor accept all the essential payment methods? Is the local payment method considered? Having fewer payment options places a business at a disadvantage. A merchant should ensure that their payment gateways support all the necessary payment options, especially those common in their field of operation. The method should be popular amongst the locals too, even if it means accepting cash payments. Some customers are skeptical about credit card options and may be comfortable with digital wallets.
Another constraint to keep in mind is the ability of the third-party gateway providers to integrate multi-currencies. This will serve as a good way to accept and authorize payments in different currencies if the business operates internationally. The additional fee that this feature comes with should also be considered to avoid inconveniences.
2. Not using a Pre Built Software
Developers find it easier to integrate payment gateways with pre-built plugins in hand. Having pre-built extensions in the chosen payment gateway allows the developers to furnish the services offered to meet customer preferences and business requirements. It saves time and effort used in meeting the expectations.
3. Overlooking Key Functionality
How is the customer support? When choosing a payment gateway provider, look for the one with a simple setup process and offer support when a problem arises while using it. Do not underestimate your need for assistance. The provider should provide easy-to-use services with minimum-to-zero technical knowledge. The purpose of the chosen plugin should drive towards efficiency of the payment gateway and reduce costs using the necessary features and functionalities.
Therefore, the focus of the payment gateway should be to support the business goals like minimizing transaction costs while driving the sales revenue.
4. Failing to Paying Close Attention to Costs
When selecting a third-party payment gateway, a merchant should pay close attention to the transaction cost the payment processor charges. Payment processors may display attractive costs with givebacks, loyalty points, bonuses , and other customer rewards that are easier to fall for if you do not pay close attention. The cost is different for every payment processor and the cost heightens as the transaction volume increases.
While some payment processors may charge a hefty fee, some actually charge a flat-rate pricing. Take into account that not all fees charged on credit card processors are highlighted. These special fees may be related to withdrawals, batch processing , and cancellations.
5. Not Understanding the Importance of Security and Payment Card Industry (PCI) compliance
Does the payment processor flag risky transactions? Is the customer credit card data encrypted and stored securely? The easiest way to ensure compliance twitho PCI standards is to collaborate with a payment processor that complies with PCI-DSS rules. It will also save you the time and money that you would have used to create your own system that complied with the standards. That is, it helps simplify your PCI compliance workload.
Find a payment gateway with the ability to meet the standards of rregulatoryegulation bodies and make the issues of security the least of your worries. It does not matter whether your business is time sensitive or data sensitive as long as your business complies with the PCI Data Security Standard.
6. Not Considering Enough Fraud Protection
Most customers will buy and pay for their products faithfully. However, a small percentage will always be out to rob merchants. Some will pay for products using stolen credit cards; others will claim not receiving their shipments at all. Merchants ggo-aheado ahead to refund the products that allegedly never arrived and pay for the consequences of the stolen money. Over time, the expenses could shoot up, sabotaging their financial and company goals.
To curb this entire chargeback problem, merchants should consider working with a payment processor that will minimize fraud when customers are shopping. A fraud monitoring and prevention solution will protect credit and debit card payment, local and alternative payment methods. In addition, merchants will realize profits hence gthe growth and expansion of their businesses.
Bonus: Do not overlook how fast you can access your funds and your competitor’s choice.
The speed at which a merchant can access their funds allows them to investigate a problem or suspicious activities. Look for a processor that allows quick access to your funds and only freezes your money in case of serious issues like fraud. However, these issues should not lock you out of your own account and getting out of this situation should be simple.
XanPay: Best Payment Gateway Solution
XanPay is your tool for expanding your business opportunities on a global scale without any hassles, all the while providing the best services to your customers. Its unique C2C routing technology enables easy processing of cross-border transactions in a much more efficient and affordable way. Moreover, we leverage our network of digital currency liquidity providers to enable payments between payment service providers (PSP), merchants, and their customers.
XanPay provides innovative features that fulfill your business needs and connect you to the right payment system.
Payment Options - One of the USPs of XanPay is that it accepts over 25 payment solutions including UPI, mobile wallets, and multiple others from over 15 countries.
Local Payments - XanPay allows customers to pay in their local currencies which are credited to merchants in their home currencies.
Integration - XanPay offers an easy way to integrate the payment gateway through three different methods so that merchants can provide an optimized user experience.
Cross-Border Payments - XanPay facilitates cross-border transactions with a lower transaction fee. Payment service providers charge as high as 6.8% to businesses engaging in cross border transactions. XanPay charges a transaction fee as low as 1.99% without any additional charges.
In conclusion, choosing the right processor should now not be a hassle for a merchant who knows the requirements of their business. The payment processors come with a significant number of features and functionalities. Merchants should be on the lookout for the right payment gateway solution by comparing their different offers, features, and long-term benefits. One solution is to avoid making these common mistakes.
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