If you are in ecommerce business then payment gateway is a mandatory option that has to be included with the shopping cart. Payment gateway manages all the money transaction happening on the ecommerce site in a secured way in order to gain the trust of customers. Around 47% of shoppers use prepaid cards for making online payments, 30% use credit cards, 28% use cash-on-delivery, 30% use bank transfer, and 27% use paypal for making the online payment.
Paypal and Authorize.net are major payment gateways that are preferred by most of the ecommerce site for handing money transaction. These famous gateways accept credit card or debit card payments, eCheck, or via paypal account at low cost with no setup or monthly fee by charging fixed transaction fee.
Few notable payment gateways include Paypal, 2Checkout, Authorize.net, Braintree, Dwolla, Amazon payments, Stripe etc. Major points that one has to consider while selecting a payment gateway include number of card types supported by the payment gateway, volume-dependent or flat rate transaction fee etc.
Some of the key factors to consider while choosing the payment gateway are discussed below.
1) Monthly fee: Select payment gateways that has minimum monthly fee.
2) Product sale: Each payment gateway support sale of certain type of products or services. It is wise to check out the products that are supported for sale by the particular payment gateway such as physical goods, digital products etc.
3) Multiple countries and currencies: The more number of currencies the payment gateway supports, the more it is beneficial. It makes the trade to be more global.
4) Onsite/Offsite: If the payment is done within the site then it is onsite otherwise it is offsite. Onsite payment may be useful when volume of sales is more. Offsite may be preferred for small payments.
5) Sign-up fee: Select a payment gateway that does not have sign up fee. When your volume of online product sale is more then sign up fee can be effective.
6) Service/Transaction fees: The payment gateways with low transaction fees can be your ideal choice. In few cases, well established payment gateways charge a little higher transaction fees and you have to choose them since it has good reputation and trust among customers.
7) Recurring payments: Payment gateways that support recurring payments can be useful for product or services that are provided as subscription.
8) Support: This has to checked such that you can get maximum support from the payment gateways to clarify your doubts.