Whether your business is an online store or has a physical location, accepting payments online is a great way to improve the purchasing experience for your customers. Over the years, Businesses, especially those in the e-commerce sector, integrate online payment systems on the checkout page of their website to ensure security and convenience for customers during payment. The various modes of online payments have become the widely used and most preferred means of businesses accepting payment from customers. However, an important component of an online payment system is a Payment Gateway.

Investopedia defines Payment Gateway as a technology used by merchants to accept debit or credit card purchases from customers. Payment Gateways can either be API-integrated (Customers make payment on one page and are not rerouted to more pages) or Hosted (Customers are rerouted to more pages to complete payment).

There are factors to consider when choosing a payment gateway provider for your business but the 3 major factors to consider include;

Security - A payment gateway provider should enable secure payment and possess a fraud detection feature.

Agreement and Service Fees - You should consider how much the gateway provider charges per transaction and if the terms & conditions are reasonable.

Location - You should consider the location as different regions may prefer different payment gateways.

The Benefits of Using a Payment Gateway For Your Business

Fast Payment Processing: A key advantage of using a good payment gateway for your business is that it ensures that entry and exit of cash in your business operations are hitch free. Payment gateways are the fastest means of processing card payments and this is particularly a major benefit for businesses, especially those that accept payment online. Integrating a payment gateway into your business is also a great way to improve the shopping experience for your customers as transactions are quicker and secure compared to manual processing.

Decrease in failed transactions: A declined transaction is one of the fastest ways to kill the shopping experience of a customer on your site and this also signifies a loss for the merchant. Using a good payment gateway for your business helps to reduce failed transactions on your site as they ensure that the card being used for online payment is valid. This helps to protect merchants against cases of fraud, expired cards and insufficient funds.

Expand Your Business Internationally: Many business owners stay away from expanding their business across international borders due to the stress that comes from receiving international payments. However, if you are considering expanding your business internationally, you might want to consider using a payment gateway. With a good payment gateway, you can accept different currencies from any part of the world seamlessly. Customers can shop on your website, add to cart and pay via any payment method of their choice listed on your checkout page via the payment gateway provider.

Quality Customer Experience: Integrating a payment gateway into your business is one way to improve the purchase experience for your customers. This simply means that choosing a good payment gateway that makes it easy for customers to pay for goods and services is very essential to the growth of your business. Most business owners offer better purchasing experience for customers by using API integrated payment gateways because the customer enters all information necessary for making payment on one-page. This helps to make payments easier and quicker for customers.

Reduces Risk of Fraud: Ensuring that your business provides buyer protection during every payment on your website is very essential. It is no news that fraudsters are relentless in finding new ways to con merchants and individuals of their cash. Using a payment gateway is one way to ensure merchant and buyer protection during a transaction. A good payment gateway securely transfers the credit card details entered by a customer to the merchant and through the use of encryption the merchant securely transfers the details to the payment processor. This ensures that sensitive details aren't exchanged between merchants and customers during payment.

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