Recently the exponential growth of E-commerce has seen waves of changes in traditional online payment solutions. It has grown in such a manner that it has become an inseparable part of our life. It is irrespective of the scale of your business whether small or big, every single business owner has become dependent on various modes of payment. As per independent estimates, Total Transaction Value in the Digital Payments segment amounts to US$3,265,209m in 2018. Total Transaction Value is expected to show an annual growth rate (CAGR 2018-2022) of 13.5% resulting in the total amount of US$5,411,354m by 2022.
Payment gateways have witnessed an extraordinary growth as not only e-retailers, but also brick and mortar retailers, vendors, banks, and customers have encouraged the concept of going cashless and paying online through various devices. Undoubtedly, payment gateway has become as the most reliable mode of payment but is it correct to say it is 100% correct. There are certain lacunae which can often create problems and make things worse. However, this can be overcome by selecting a suitable payment gateway, which can make things smooth for you and your customers while doing business transactions. Having said that the decision of selecting the right payment gateway is always a tricky one.
Following are the 5 tips on must consider before opting for the right e-payment model.
Selecting ‘The Best’
Whenever you have to choose a platform for online payments platform, the first thing one should figure out is payment gateway that caters all kinds of transactions such as credit cards, smart cards, debit cards, electronic fund transfer via bank’s website and/or any other mode of electronic payment. Every business enterprise has its own needs and requirements, but payment gateway is the one that every business entity has to consider that seriously of which it would lead to a negative impact on running of functional issues.
Ease of transactions
Undoubtedly, fast and easy transactions are one of the most important features for any online payment gateway. However, there are so many payment models that act very slowly and operate ineffectively especially regarding seeking permissions from the partner banks or merchants. Another point to consider is that the time taken by a payment gateway must be in sync with the timeline of the online business. Besides, it is also important to ensure that the payment gateway reduces the risk of failures and losses, and facilitates ease of integration.
People generally do not understand the concept of ‘cost of transaction’ properly. Most of the people think that it is only about saving money and availing affordable services, but they miss out some important aspects like minimizing the risk of failure, efficient use of real-time tools like query and call back system, automated balance update, faster turnaround on issues relating to transactions and much more. While, choosing optimum e-payment model, a business owner should be alert and vigilant regarding merchant service providers that provide services at a very low rate or free of cost. These misleading operators are general fake, does malpractices or provide non-satisfactory services.
Settlements and Reconciliations
These days, customers or the institutions are all always short of time and so in the context of real-time settlements the channel has to be robust. Ineffective and delayed settlements can lead to real-time customer’s bad experience. Hence, settling the dispute is not only the criteria but settling it within time is a more important feature. Payments and services are two important factors which can make or break any partnership between the online service provider and the customer.
For faster transactions, the consumer usually tends to opts out for Immediate Payment Service (IMPS), express and turbo checkouts. In that case, it is vital for the payment gateway platform to process the transaction effectively and efficiently, hence saving the consumers time along with ensuring data security.
Online business transactions cannot function properly if they are not secured which is even more relevant in the case of monetary transactions. Vital features pertinent to all payment gateways are – guaranteed authenticity, fraud prevention, and mismanagement detection mechanisms, data security, multi-currency payment processing platforms. While all the characteristics are important, fraud protection is the most important security feature that should not be taken for granted. Ignoring any of the above-mentioned features will lead serious consequences to the organization effective in running the business.
To Know More about iPayTotal Payment Solutions
Give us a call at+44 800 776 5988 or get in touch with us through our website. Even if you’re not a customer of ours, we want to help you understand the process so you can make the best decisions for your business. We believe transparency and proactive education is the best policy.