You are always on the lookout for ways to increase your business’ bottom line. Offering multiple payment options to customers is one way to achieve this. Is it worth the hassle?
Let’s take a look at some of the benefits and drawbacks of using multiple payment gateways.
The Benefits of Multiple Payment Gateways
- More payment options for customers
You can offer your customers multiple payment options, so they have more choices when it comes to how they pay for goods and services. This is useful if customers prefer one payment gateway, such as PayPal, or if they wish to use a rewards credit card.
- Businesses have greater flexibility
Businesses also have more flexibility by using multiple gateways. You may choose to use one gateway to conduct online transactions and another one for in-person sales. You may also want to offer different gateways for different customer segments (such as business vs. consumers).
- Redundancy in the Event of Gateway Outages
Multiple payment options can save you if one of your gateways is down. Customers can still purchase using the other gateway and you won’t lose any sales.
The Drawbacks of Using Multiple Payment Gateways
- Complexity and additional cost
Multiple payment gateways can make it more costly and difficult to use than one. Multiple payment gateways will require you to create and manage multiple accounts. Each gateway may have transaction fees.
- There is more room for error
Multiple gateways offer more scope for error. You might accidentally charge the same customer twice for two different payment methods. You may also forget to update your records if a gateway changes its rates and policies.
- Fraud risk increases
Multiple payment gateways can increase fraud risk if you aren’t careful. Criminals can use weaknesses in one payment gateway to commit fraud through the other. It is important to ensure that you have strong security measures in place when using multiple gateways.
Can Multiple Payment Gateways Increase Sales?
Multiple payment gateways can help increase sales. However, you must be able to use them properly.
It is important to give your customers as many payment options as possible for your product or services. They will be more likely to choose a payment option that suits them. The more options they have, the easier it is for them to make a purchase.
Providing too many payment options can make it confusing and overwhelming for customers. You need to find a balance between offering customers enough options and not overwhelming them.
Here are some tips to help you do that.
- You can use a combination of alternative and traditional payment methods.
Credit cards are still the most used online payment method. However, there is a growing number who prefer to use other payment methods such as PayPal or Bitcoin.
It makes sense to have both traditional and alternate payment options available on your website. This will allow you to meet the needs of all customers.
- Customers should be able to pay in local currency.
Customers must have the option of paying in local currency if they sell internationally. Customers may not be able to pay in their local currency, or they might feel intimidated by the hassle of changing it into US dollars.
Many payment gateways accept multiple currencies. You can offer your customers the ability to pay in their currency.
- Make sure you use a mobile payment gateway.
People are increasingly using their tablets and smartphones to shop online. It’s crucial to choose a payment gateway that accepts mobile payments. This will make it easier for customers to pay using their mobile devices.
- Customers who use certain payment methods can get discounts
Customers can be encouraged to use certain payment methods by offering discounts. Customers who pay by PayPal or Bitcoin could get a 5% discount.
This is a great way for customers to be able to pay most conveniently.
- A customer-friendly payment gateway is recommended.
Your customers should find it easy to use the payment gateway that you choose. The interface should be simple and easy to use so that customers can make a purchase.
You should also choose a secure and reliable payment gateway. Customers shouldn’t have to worry about losing their credit card information or having their purchases stolen.
These tips will allow you to make the most out of multiple payment options and increase your sales. Start offering more payment options to your customers today and watch your sales rise!
The Bottom Line:
Your specific circumstances and needs will determine whether multiple payment gateways are right for you. Be sure to carefully weigh the pros and cons of this option and to take security precautions to protect your business against fraud.
After weighing the pros and cons of using multiple payment gateways you may also want to speak with a credit card processing consultant to analyze your business and help you make the right decision. At Balanced Processing Partners, we work with many payment gateway companies and can show you options that best fit your business needs and budget.