Payment gateway integration is important to the success of eCommerce business online. It comes with features that facilitate electronic payment processing for merchants and eCommerce stores.
Online payments will reach $523 billion in the USA only by 2020. Nearly 70% of Americans shop online.
Whether you are using a payment gateway to process payments in your eCommerce website or have plans to build online stores and researching on the best payment gateways for e-commerce platforms or listing out feasibility to add multiple payment gateways to expand your stores to other country customers as well.
To make things at least a bit easier, we have evaluated several factors and put down a list of payment gateway integration solutions for eCommerce stores.
The best solution is to first understand about payment gateway, its components and how payment gateways get paid. Let’s get started…
What is Payment Gateway?
A payment gateway is an e-commerce service it facilitates a payment transaction by the transfer of payment details from the portal (such as a website, mobile phone or IVRS) and payment processor or acquiring bank.
eCommerce stores need to integrate application programming interfaces (APIs) that plug into the online store through programming that enables their functionality.
How does an online payment gateway work?
The idea is to make payment processing easy, effective and secure. Here is a step by step guide detailing how Payment Gateways work:
- It starts when customers place an order from an online store and fill its credit card details.
- The web browser encrypts the data to be sent between it and the vendor’s web server.
- The gateway then sends the transaction data to the payment processor utilized by the vendor’s acquiring bank.
- The payment processor sends the transaction data to a card association.
- The credit card’s issuing bank views the authorization request and “approves” or “denies.”
- The processor then forwards an authorization pertaining to the merchant and consumer to the payment gateway.
- Once the gateway obtains this response, it transmits it to the website/interface to process the payment.
- Clearing Transactions – is only triggered once the merchant has actually completed the transaction.
- The issuing bank changes the “auth-hold” to a debit, allowing a “settlement” with the vendor’s acquiring bank.
Security and Authentication Related functions performed by Payment Gateways, Example fraud detection functions:
- Delivery address verification
- AVS checks
- Computer fingerprinting technology
- Velocity pattern analysis
- Identity morphing detection
How to Integrate a Payment Gateway in Your eCommerce Website
Online shopping means a customer gets easy to use, secure and user-friendly option to purchase from your ecommerce store, and not just seen or appreciated. And every ecommerce business owner should consider integrating multiple online payment gateways to increase sales.
By 2022, transaction values for digital commerce are set to reach US$5,411,354.
With the right payment gateway, you can make it easy for customers to pay for your products. After understanding how payment gateways for ecommerce sites work, now it’s time to choose which gateway is the best fit for your online store.
Criteria to evaluate and choose payment gateway for your online store:
- Pricing transparency
- Pricing consistency
- Processing costs for in-person transactions
- Ease of setting up and canceling an account
- The speed of setting up and canceling an account
- Length of time to receive funds following a transaction
- Customer support service
Top online payment gateway for eCommerce
Integrated payment gateways are the best option for ecommerce sites as it connects through API’s, it provides smooth, easy to use and seamless experience because the customer never has to leave your store to input payment details and place orders, besides this, it is best from the conversion point of view.
Here are some of the best payment gateway services of 2018 for ecommerce platforms:
- Amazon Payments
- PayPal Payments Pro
Benefits of Payment Gateway Integration
- Automated payment processing
- Data security
- Transaction security
- Improved workflow management
- Reduce errors
- Ease of use
- Feature-rich solutions
- Increased payment success rate
- Customized experience
- Integrating international payments
- Multiple payment modes
What is payment gateway fee?
Fees depend on a number of variables including size of average transactions, number of transactions, and annual/monthly volume. The industry is highly competitive.
Example 1: – Standard PayPal Processing Fee
No setup or monthly fees
US fees – 2.9% + $0.30 per transaction.
International fees – 3.9% + $0.30 per transaction.
Example 2: – Authorize.net processing fee
$49 setup fee, paid only once.
$25 getaway fee, monthly.
$25 chargeback fee.
Transaction fee – 2.9% + $0.30.
Once you are done with the understanding of payment gateways for ecommerce. Get these integrated by eCommerce developers in-house or get it integrated by e-commerce development companies at a nominal development charge.
Ready for Payment Gateway Integration? Get Started Accepting Online Payments.
i-Verve an ecommerce development company has provided payment gateway integration services for retail shopping cart business, subscription-based websites, C2C payment systems, multivendor pay-outs, donation sites and much more.
Get secure online payment gateway integration service and get paid through credit card, debit card, visa, and e-check.