Crucial Factors to Consider When Selecting a Payment Gateway

If you have a fast-growing business, the last thing you want is to go through the hassle of keeping up with payments from your customers. That’s why it’s important for you to consider choosing a payment gateway for your business. Not only are they fast, they’re reliable as well, and they maintain a strong business relationship between you and your customers. Payment gateways are available for all types of businesses, whether small, medium or large businesses. With them, once your customers have paid for your services, it immediately reflects on your side, as shown at https://thesoutherninstitute.com/cbd-merchant-services/.

Basically, a payment gateway is a special application that enables a business to effectively request for payment from its customers. Once a client orders a product from you, it confirms their method of payment, confirms their billing details, accepts requests and allows you to receive payment. There are two main types of payment gateways; Classic or Traditional gateways that require you to have a merchant account for them to transfer cash into your account. The second is Modern gateways that don’t require you to have a merchant account for money transfer into your account.

Though modern gateways are an obvious pick for most store owners, their greatest drawback is most of them send clients off-site to carry out their payment. This causes most stores to suffer great losses. With all that said, it’s now time to know the factors you should consider as you choose a payment gateway for your store:

1. The cards it accepts

Here, you should weigh your store and its performance in terms of sales. Most payment gateways accept credit cards such as MasterCard, Visa, and Amex. If your clients use other types of cards such as a debit card, it is crucial for you to get a payment gateway that accepts it.

2. Support of various currencies

If your business is large and you have international clients, choose a gateway that seamlessly accommodates foreign currencies. Be sure to check the fee charged for transactions of foreign currencies so that you’re always prepared.

3. Cost

This is the key factor that you have to think about. In order for you to get one that’s in line with your finances, consider the value and volume of your transactions. The three types of costs that come with using payment gateways are; transaction fee, set-up fee, and monthly fee. Making a wise choice here allows you to enjoy quality services at an affordable price.

4. Holding duration

Payment gateways hold money for varying periods of time. This allows refunds to be possible in case clients aren’t satisfied with your services. Some do it for a week while others hold the money for a few days. Depending on your type of business, you should choose one that works best for you, depending on how fast or slow money flows into your account.

5. Is it non-hosted or hosted?

Non-hosted payment gateways hinder your clients from filling in their details while they’re away from your website. On the other hand, hosted gateways take clients to the website of the payment processor, where they input their details. Always consider your business for you to make accurate decisions.