In today’s shopping world many businesses are having to learn how to navigate the new online options to help grow their business as well as most people no longer pay by cash but use debit or credit cards to pay for their purchases. There are so many options available to businesses in terms of credit card processing systems.
If you’re reading this article, you probably already know that accepting payments electronically is essential to the success of your business and its bottom line. But since it can be overwhelming to consider how to implement online payment processing for a small business, we want to make the decision-making process easier for you by discussing what Payment Gateway services are and what they do.
What is a Payment Gateway?
First, you need to understand what a payment gateway is. A Payment Gateway enables merchants to securely accept electronic payments over the Internet. Payment Gateways also provide fraud protection services that reduce transaction disputes and protect online businesses against payment card fraud, which ultimately results in lower chargeback ratios.
In order to accept electronic payments, most businesses have their own Merchant Account with a Payment Service Provider like PayPal. Payment Gateways and Payment Service Providers can be thought of as the same thing, but Payment Gateways usually cater to smaller businesses that don’t require more complex business accounts. Payment Gateways also provide customer service and transaction dispute resolution that is often times less expensive than an Internet Merchant Account would charge for similar services, which is why some small businesses opt to use Payment Gateways rather than a Payment Service Provider or Internet Merchant Account.
Does my business need a Payment Gateway?
Yes. If you’re selling products or services online then you should have one for accepting payments from your customers be it on websites, email or via MOTO. Payment gateways are also vital for telephone orders, banking ATMs & direct debits etc. Payment Gateways have many benefits to your business such as ease of transactions, increased security for financial data and superior customer service. Your incoming payments are automatically deposited into your designated bank account each day instead of once a month with the Payment Gateway deposit feature which is useful especially if you’re running on a cash basis.
What are the benefits of Payment Gateways?
Businesses can potentially increase sales by using Payment Gateway services because they let customers make quick purchases on the Internet with credit or debit cards, which are fast becoming the new currency of online shopping. Payment gateways also make it easier for people who don’t have digital wallets to purchase items from websites.
Customers no longer need to create an account on your website to buy something; all you need is their card details and voila! Payment gateway integration can also turn into viral marketing because it provides buyers with secure payment facilities that are convenient and easy-to-use. Payment gateways have other benefits for small businesses too, such as:
- Payment gateways let you take payment from international buyers.
- Payment gateway services add credibility to your business because it lets customers enter their card details without going through the hassle of creating a new account on your site or setting up a digital wallet with you.
- Payment gateways allow fast and secure online transactions, so you don’t need to worry about the safety of customer data anymore.
How Much Do Payment Gateways Cost?
The cost of Payment Gateway services depends on how much money you make per transaction. If you want an easy way to figure out how much Payment Gateway services will cost your business, try using this formula: (Transaction fee * number of transactions) + monthly fee. Payment gateways also charge higher transaction fees for every international transaction that takes place on your website or e-commerce store, so if you’re doing a lot of business across borders and outside your home country, Payment Gateway services could end up costing you a significant amount of money.
The cost of Payment Gateway services can be daunting at first because it’s not just one fee that your customer pays when they complete their purchase – there are several additional fees too that go into making Payment Gateway services work for you! However, Payment Gateways do have some excellent benefits that make them worthy investments for any business looking to expand its horizons by selling goods and services online.
How to Choose a Payment Gateway?
There are various Payment Gateway options to choose from and they vary according to the number of transactions they process, transaction types, payment channels supported, and the fees involved. Payment Gateways can be either Payment First or Payment Only. Payment First Payment Gateways will allow you to open an account with them and provide your merchant ID to accept payments with a single account across all online platforms like websites, mobile apps, or social media accounts as well as offline integration points. Payment Only Payment Gateways offer a service where businesses can use their own merchant IDs but cannot issue separate ones for different online portals.
Some Payment Gateways also have both options combined in one account. For this reason, it is important that you find out which Payment Gateway works best for your business before signing up. Our team at Balanced Processing Partners are here to help you with questions and concerns and show you all your options. We have many partners offering gateway solutions, and we can provide competitive pricing. Our goal is to make sure that no matter what decision you make that the decision best fits the needs of your business. If you have questions, you can call us @ (800) 354-6256 to discuss further or visit our website Balanced Processing Partners for additional information regarding our company.