eCommerce Tips

How to Choose a Payment Gateway

By January 22, 2017 No Comments

As an eCommerce business owner, you want to create the best shopping experience for your customers in every possible way. This includes a convenient payment method and frictionless payment process which conjointly create a delightful checkout experience. The payment gateway plays the role as a mediator between the purchase transaction and payment process. It authorizes you to charge your customer’s credit/debit card with the purchase from your eCommerce store.

What's a payment gateway

Image credit: Formstake

It can be the reason that your customers complete the purchases or drop off their shopping carts. A survey carried out by YouGov found that half of the online shoppers would not complete their purchase if their preferred method of payment wasn’t available. That said, when a payment gateway offers at least 4 payment options, it would increase the conversion rate by up to 25%.

Finding the best-fit payment gateway can be a nerve-wracking task since there are numerous options available. Besides the cost, contract, and reputation of the gateway providers, here are 2 key points you need to consider when selecting a gateway.

1. Is it supported by your current eCommerce platform?

Magento, Woocommerce, Shopify, which eCommerce platform are you working with? Some payment gateways are supported by a certain platform while some are not. If a gateway is supported by your eCommerce platform, it means there is an existing plugin or extension that integrates it with that platform. Well, you can also choose a gateway that is not supported by a plugin, but the truth is that you will have to spend some precious time and money to customize a connection for the two. Why bother?

2. Does the payment gateway support the payment methods for your target market?

Some payment gateways such as Sage are widely used in many countries while others are only available in certain regions. Make sure you are crystal clear about which payment methods the majority of your target customers use in a certain geographical area. The payment gateway you choose must support the currencies you’ll be billing customers in and the country you are currently located.

For example, a payment gateway may support both CAD and EUR currencies but only support ones that are located in France. In this case, even though the payment gateway supports CAD, they wouldn’t be an ideal choice if you are located in Canada.

Not all payment gateways are created equal especially when it comes to the flexibility that your business needs to support your very own eCommerce activities. Takes your time to research both your customers’ preference and your business’s need before you start looking for the provider with the best offer.