How to Choose Payment Processing for a Website

In an increasingly digital world, companies are relying more and more on online sales for their business success. Many business owners are not sure how to best set up an online presence. They hire designers to create the look of the websites, but they still need to make decisions about how to set up payment processing on their online store. There are many options for a business owner to choose from, and it is critical for owners to make a wise choice. Customers will need to be comfortable that their online payment is safe and secure, and business owners will want the flexibility to reach as many customers as possible.

What is a Payment Gateway?

Simply put, a payment gateway is an application that requests and process a payment from a customer. The gateway will verify the customer’s billing information, verify funds for the payment method, approves the payment request, and pays the business owner for the transaction. Gateway companies provide this service for a fee, generally on a per transaction basis.

Classic versus Modern

There are several different types of payment gateways, and the business owner will need to choose which type best suits their customers and business. Typically, gateways are broken down into modern or classic. A classic gateway account will require the merchant to obtain a merchant account from a bank, which can be difficult for some businesses. A modern gateway will not require the merchant bank account. Typically though, a modern account will charge higher fees.

Hosted versus Integrated

A hosted application is not on the merchant’s website. The customer will be redirected to the gateway’s website to complete their purchase. In an integrated application, the entire check-out process remains on the business’s website. The benefit to an integrated system is that the process is seamless to the customer. However, the business owner will need to have the ability to integrate with the selected gateway.

A Range of Payment Options

Business owners want to attract as many customers as possible to their online store. Choosing a payment gateway can either increase or limit the customer options. International buyers may not trust the payment solution that has been chosen. Certain payment gateways, such as BlueSnap, offer a wide range of payment options that are trusted across the globe. Choose a payment gateway that not only fits the business today but allows for future growth.