When an online portal or e-store plans to start it business from the virtual platform, it is essential to select the one that fits perfectly with the merchant’s business requirement. A lot depends upon the type of business that the entity is involved in – it could be a medium scale business or individually owned business or a small local store or is a significant scale business that is intended to create a brand image for itself online. In the last case, choosing to go in for a conventional payment gateway is the best because as a big company they can afford to spend such kind of money. However, a local store will have the objective of being able to accept payments via virtual wallet other than the other methods of digital payments. Also because of limited budgets and operations on a local level, the business will not want to spend too much time in documentation or invest too much in installing a payment gateway. In the first case, the business will want to hire the services of a gateway that does not require too much time to setup and can collect payments from UPI, EMI and other digital methods besides credit/debit card, online wallets, and bank transfer.
Whatever is your business model, the critical parameters to be considered are-
- Do you want your customers to make their payments at your site or you are okay with sending them to another website for processing payments.
- Check for the platform of the payment gateway and cross-check if the platform of your website and the gateway can be integrated smoothly or not.
- What is the fee structure of the payment gateway? What are the setup fees?
- What are the transaction fees the merchant needs to incur? What percentage of the profit is the merchant required to pay per transaction to the payment gateway?
- The documentation process related to Know Your Customer typically takes lots of time. The merchant or the business needs to understand the timelines related to carrying out the legal paperwork.
- Depending on the business type the merchant will accept different types of payment. His payment modes and the one that the gateway can accept should be on the same level. One right way of understanding the effectiveness of the payment gateway is to check the success rate of the transactions via credit card, debit card, and Netbanking. If the gateway is not able to process transactions timely and smoothly the merchant’s customers will move onto a competition site in no time.
- What is the procedure of the payment gateway paying back the merchant? What is the frequency of payments?
h. And lastly and the most important part is the compliances that the payment gateway has applied for and the encryption technology that the gateway works with. Is the gateway compliant with all the PCI-DSS regulations or not? Does it follow the RBI laid two-fold authentication process? Does it follow the SSL standards or not?