Written by: Roshan Dwivedi
- In 2017, an estimated 1.66 billion people worldwide purchased goods online
- Online transaction in the U.S. grew 4 times as much as retail payments from 2013-2017
- An average U.S. consumer does approx. 19 online transaction per year
The above statistics says it all why digital commerce is a booming business today and why you should have an e-store for your products immediately. The prime concern, however, before going digital with your venture is to choose a payment gateway that suits your business model and, of course, your budget. So, here we bring you 8 key factors to consider for selecting the right payment gateway for your business.
Choosing The Right Payment Gateway: 8 Key Factors
1. Transparent Fee Structure – You must understand the fee structure of the service provider before signing up for one. There are hidden fees associated with them that will later bump your profit level. There are a few gateways who charge a fee for each transaction and some have a monthly subscription fee for a fixed number of transaction. So, do your maths before you sign the dots. Check if the payment gateway you’re considering supports both recurring and one-time payments. Some gateways don’t support recurring payments. Also, be wary of payment companies won’t charge any setup fee but charge high for every transaction as they can eat into your earnings.
MUVI ADVANTAGE: With Muvi you can maximize your earnings as you don’t have to share a single revenue with Muvi. All your subscription revenues are directly linked to your bank account and Muvi has no intervention towards it whatsoever.
2. Recurring Billing Support – If your business will be offering subscriptions or giving customers access to content via paid memberships, you must check if the gateways you’re considering support automatic payments for recurring plans. If they don’t, your customers will need to renew manually each month, which can be a bad experience. Also, some payment gateways offer Automatic Retry so that users don’t have to manually collect failed payments. So, customer’s subscriptions will not terminate due to payment failures but will remain in a suspended status until the subscription’s payment details are updated.
MUVI ADVANTAGE: Our auto-payment reminders to your subscribers streamline payment procedure even further. You can set a reminder time-frame for your user accounts, and the platform will automatically trigger the reminder when the configured conditions are met.
3. Multiple Currency Processing – Does your brand/business cater customers globally? Well, check with your gateway provider, if they support multi-currency transaction, and if there are any geographical restrictions associated. International shoppers add tremendously to your business and brand. Do your research thoroughly.
MUVI ADVANTAGE: Muvi supports multi-currency and integrates with multiple payment gateways offering your subscribers a chance to pay from their local currencies. You can have a truly global platform where you can charge a visitor based on their location either in USD or Euro or GBP with variable pricing for each currency. With Muvi, you get the flexibility to bill your users in the currency you want, including BitCoins as a mode of payment.
4. Ease of Website Integration – Integrating the payment processing with your own website and with different credit cards and banking services is perhaps the most important among all from the business perspective. Ideally, you must select a provider where your customers after checking out land upon the payment gateway provider’s site, pay the bill and the provider sends them back to your website once the transaction is over. It’s highly recommended that you keep the integration simple. The other way is to have your own credit card entry form on your website like Amazon and process the transaction.
MUVI ADVANTAGE: Muvi offers out-of-box integrations! It comes integrated with Adyen, Stripe, Authorize.net, First Data, PayPal, Instafeez, PayGate, BrainTree and WorldPay as default Payment Gateways to help you go live instantly. A payment gateway can either be integrated on Muvi’s page, or on a hosted page from the gateway’s domain. You can also request us to integrate with any payment gateway of your choice, and we will do the needful, be it operator/carrier billing to accepting payments in bitcoins, whatever mode you want we can do the same.
[Muvi supports every payment gateway you can think of and integrate the same into your platform. Click here to know more]
5. Security – Ensure that the gateway service provider is a level 1 compliant with the Payment Card Industry Data Security Standard (PCI DSS). PCI DSS is the industry benchmark for any site which hosts online payments through cards, and the guidelines mandate multi-layer defense, encrypted data transmission, and data protection architecture to ensure a secure payment procedure. The recognition ascertains that your customer’s data is secured and his privacy is protected. The gateway provider should be armored with the cutting-edge tool such as fraud monitoring system, 3D secure function, Address Verification System (AVS), IP geolocation etc. to prevent cyber fraud. A lack of security could put your customers at risk, and make your store vulnerable to cyber attacks.
MUVI ADVANTAGE: Muvi platform is a PCI compliant host, and therefore all user card information stays completely secure. Being PCI compliant, Muvi protects card authorization, user authentication, card data storage, card data transmission, and user passwords.
6. Shorter Payouts Time – Take a note of the stated practices of each payment gateway service for deferring payment back to you. There are some payment gateways which have a no-reserve policy but usually take a couple of weeks to a month to remit your funds. Although risk assessment is the primary reason that payment gateways maintain reserves, always have clarity about conditions and time, when you will be able to access your money.
7. Reserve Funds – Payment gateway companies reserve a portion (usually 5-10%) from every transaction that is held for 3-6 months and then settled to the merchant. The reserve account is nothing but is a security against an account being brought into a negative balance for numerous reasons possible. Its a standard practice in the industry and something you must be aware of.
8. Customer Support – Machines are not the solution always. You must opt for a payment gateway service provider that armors you with an excellent customer service equipped with trained support team working 24 x 7. Because they are dealing with your customer’s money and your trust. There is nothing bigger than that.
MUVI ADVANTAGE: As a Muvi admin one can view and manage user subscriptions using the “end user support” feature. They can perform management tasks such as adding a free user, canceling a user subscription, deleting a user, managing devices, assisting in password reset, etc. They can also view transaction history including subscription due, pre-orders, bundled subscriptions, etc.