How To Choose The Right Payment Gateway For Your Start-up
Start-ups looking to improve their cash flow and streamline their payment processing must integrate an online payment gateway into their e-Commerce system. Numerous online payment providers in India make it easier for customers to make payments online. To activate an online payment system, an e-Commerce business will require a payment gateway to make the transactions happen. It is a secure system that handles sensitive information while authorizing payments from customers’ bank accounts.
Selecting a payment gateway is a crucial decision for a business. If it does not suit the business model and requirements, the start-up will lose both customers and money. Find out more about choosing the right payment gateway for your start-up.
Check the Supported Payment Modes
Debit and credit cards are customers’ most commonly used payment modes. Almost every payment gateway accepts these payment mediums. However, customers’ preferences have changed, and they are more comfortable paying through other payment modes, like net banking, e-wallets, etc. The start-up must ensure that the payment gateway they choose supports the maximum variety of payment options.
Look at the Security Features
Online payments are sensitive and risk-prone, as they involve collecting and storing confidential information about the customers’ and the merchant’s finances. Therefore, the best payment gateway is the one that keeps security at the top priority. Different gateway providers follow different compliance and security standards. A start-up must ensure that its gateway is at least PCI-DSS Level-1 compliant. Some payment gateways also come with screening methods, anti-fraud tools, and fraud detection mechanisms to protect businesses and customers from fraudulent transactions.
Ensure Multiple Currency Support
With online business platforms, start-ups can launch themselves on a global platform, enabling customers from around the world to place their orders. However, a business that operates internationally must ensure that the payment gateway handles payments in multiple currencies. Most customers are comfortable paying in their local currency only. So, a business would not want to lose those customers because their payment gateway does not support foreign currency payments.
Test the Holding Time
Although payment providers approve a transaction almost immediately, they hold the money for a few days before settling the account. They take this time to handle chargebacks and refunds. Different payment providers in India have different holding times, ranging from one to seven days. While selecting a payment gateway, the goal is to choose the one that takes minimum time to release the payment.
Confirm Integration with Other Systems
It’s worth choosing a payment gateway that connects with the business’s other accounting and invoicing software programs. If properly integrated, the gateway will automatically update the bookkeeping system whenever an online transaction takes place. Seamless integration saves a lot of effort and time because a start-up may not have dedicated teams to update and track payment details in the accounting system.
These are a few things a start-up must consider while selecting a payment gateway. Besides these, the best payment providers in India have dedicated customer service teams that help the business during every stage of the integration and onboarding process.