8 Key Factors for Choosing a Payment Gateway

Starting a new ecommerce business? A key ingredient for success is picking the right payment gateway provider that handles your online payments.

Once you’ve got the right partner onboard, they’ll make sure your payment process is smooth and secure.

However, with so many options available, finding and choosing the perfect payment gateway can be overwhelming. You need to compare and identify the right payment gateway that's ideal for your business and customers.

Builder Marketplace, which can be used alongside Builder Studio, is a one-stop solution for ecommerce entrepreneurs looking for a smooth and hassle-free integration of a payment gateway with their website or app.

In this blog post, we'll help you understand the factors to consider when looking for a payment gateway provider for your budding business.

But before we begin, let’s understand what a payment gateway is.

What is a payment gateway?

A payment gateway allows customers to pay and businesses to receive payments electronically. Unlike a POS terminal, where customers swipe their card on a physical machine, in online transactions, customers can enter their card information or other details (depending on the chosen payment method) on the ecommerce website or app.

It allows the secure transfer of payment information from the website or app to the payment processor. A payment processor, in turn, ensures a seamless and secure transfer of payment information between the business, issuing bank and customers. Most payment gateways today come with their own payment processors.

What is the difference between a payment gateway and a payment method?

Payment methods in the digital payments context are the different ways customers can choose to make digital payments. This includes:

Debit cards
Credit cards
Prepaid cards
Net banking or online bank transfers
Digital wallets
Buy Now, Pay Later (BNPL)
Unified Payments Interface (UPI)

Each payment gateway supports a different set of payment methods.

What key factors should you consider when choosing a payment gateway?

Now let’s get down to the factors to look out for when choosing a payment gateway for your upcoming ecommerce business:

Cost

Cost is a key factor to consider when you’re comparing different payment gateways. You need to understand how different payment gateway providers break their costs.

Here’s a breakdown of the typical fees charged by payment gateway providers:

Per-transaction fee
Set-up fee
Monthly fee

Payment method fee

Industry-specific fee

Cross-border fee

Comparing the cost structure of different payment gateway providers enables you to select the one which aligns with the projected volume of your transactions.

Payment methods supported

As mentioned above, different payment gateways support different sets of payment methods. You should select the payment gateway which supports the payment methods preferred by your target customers.

For example, if most of your customers prefer credit cards as a payment method, then you should consider selecting a payment gateway which supports credit card payments. Similarly, if you believe that most of your target customers may like to have a BNPL option, you should select a payment gateway that supports it.

Security & privacy

When it comes to online financial transactions, you can’t compromise on data security. You need to ensure the gateway is compliant with PCI DSS (Payment Card Industry Data Security Standard) to protect sensitive customer data and adhere to all necessary safety protocols.

Some gateways also provide inbuilt fraud detection mechanisms. You should make sure that you choose a gateway that never compromises the sensitive information of your customers.

Ease of integration

A payment gateway should easily integrate with your website or app. The gateway should ideally have easily accessible API documentation, SDKs or plugins to ensure a smooth integration without involving complex development efforts or time.

Builder Marketplace is one such platform which provides a single-click, hassle-free integration between your app and the payment gateway of your choice.

Checkout experience

Did you know 28% of customers abandon their carts due to a complex checkout process? A confusing checkout flow with unnecessary steps can lead to a bad customer experience and high dropout rates.

It’s important that your payment gateway partner offers a quick and smooth checkout flow to provide a hassle-free checkout experience for your customers and keep the cart-abandonment rates low.

Top tip - As mobile commerce becomes increasingly popular, make sure your payment gateway supports a seamless checkout experience for all mobile devices.

Customer support

Always look for a payment gateway that offers reliable and prompt customer support across your preferred communication channels, such as phone, email and live chat.

Ideally, your payment gateway should provide 24/7 customer support and have a reputation for quick resolutions.

Multi-currency support

If you have an international customer base, you should check that your gateway supports a wide range of currencies. It’s also worth checking the fees and the fee structure for any additional charges for international payments.

Dashboard & Analytics

Some payment gateways provide a comprehensive dashboard containing reports and charts to help their customers keep track of their daily/weekly/monthly transactions and business performance. Choosing such a provider can save you the effort of setting up dashboards and analytics yourself.

Conclusion

There's no doubt that choosing the right payment gateway is one of the most crucial decisions for your business.

Above are some of the most important factors to keep in mind when looking for a payment gateway for your ecommerce website or application. Make sure you do a detailed analysis to select the payment gateway which suits your business needs well and provides a smooth customer experience.

If you’re looking to build an ecommerce business, ‌ check out Builder Studio & Builder Marketplace. Builder Marketplace offers many options of leading payment gateways you can easily integrate with, all tailored to fit different needs and budgets.

One-click integration - get one-click payment gateway integration directly from Builder Studio
Auto-account creation - skip manual account creation; set up your partner account automatically
Custom solutions - get solutions tailored to meet the unique requirements of your business
Quick implementation - get your payment gateway integration up and running in no time
24/7 support - access round-the-clock expert support to for any integration issues