Selecting the ultimate payment gateway for your business

By Dave Bapsnill


So, you are a company owner or freelancer looking to expand your business and make some more money. You come up with the idea of supplementing your income by selling your products or services online. So you have setup your website and added your services and products. Now you are looking for a method for your clients to pay you.

There are a myriad of options available to the company owner when it comes to getting paid online. Traditional methods like wire transfer, cheque, cash and direct bank deposit are great basic payment methods for any small business, but because there are so many great online payment gateways out there it is possibly a good idea to offer at least one for you customers to utilize.

Geographic location of your customers

Ask yourself if most of your clients are based in your own country or do the majority of your sales come from customers that are outside of your country. Whether you use a geographically general or specific payment gateway is up to where the majority of your clients resides. If most of your clients are from your country you can use a local payment gateway. If most of your business is conducted with global customers you need to get a gateway that allows this.

Which currency will your clients be paying you in? This will help you decide on a payment gateway that's right for you. Most payment gateways only support billing and payments collection in certain currencies, make sure the gateway you choose supports the currencies your customers want to make payment with.

Immediate vs scheduled payment

Do you sell a product or service that the customer is required to make a single payment for or is the product or service paid for in installments? i.e. comes as part of a recurring subscription that requires multiple successive payments.

Selling products or services that require a once-off payment alone means you can look at a payment gateway that facilitates your customers to make immediate secure payments online. This is commonly a gateway that facilitates payment via credit card or a service like PayPal that provides immediate secure payments for individuals who have accounts with them.

Let's say that the majority of your customers will need to pay on a recurring basis for the products or services you provide. For example; a fortnightly payment for the gardening maintenance services your company supplies. This means you will need to look at a payment gateway that facilitates the submission of recurring direct debits to credit cards and bank accounts. Make sure you use a service that supports collection in the currency your customers use.

Costing and level of service

So you have decided on a handful of gateways that meet your currency, target market and payment type needs. To assist you make your final decision you can use the tips below:

- Transaction fees: Investigate the fees every gateway charges and compare them. Some gateways also have security deposits that need to be paid and strict withdrawal policies, so make sure before committing.

- Reconciliation of your payments is crucial so find out what kind of reporting services your gateway offers. Ensure they supply accurate results of transactions in a timely manner.

- Some payment gateways supply you with an integrated merchant account while others require you to have one with a bank. Find out what is needed and if you qualify for an account before signing up.

- Safety and security regulations in the payment gateway sector are there to keep you safe. Always follow up with you local regulatory authority to make sure the payment gateway you want to use is a member and complies with their laws.




About the Author:



No comments:

Post a Comment