We have come across many entrepreneurs who have been struggling to make a way for user’s payment to their account. Since the startups are not limited to any region rather expanding their online business to the overseas and reaching the customers worldwide. This sometimes troubles the merchants in fulfilling the transaction due to different currency or payment method accepted by the customers. When any payment or transaction is considered, you cannot ignore the frauds preventions.

If you too are thinking about the payment gateway, then, before picking any gateway method, then, be with us till the end.

What is the payment Gateway?

You may have definitely heard of Paypal, Mobikwik, PayUMoney, CCavenue etc., The overseas location and currency conversion are no more problems now. The payment gateway provides the security to the transactions and leaves every hassle of different type of payment mode and currency conversion.

Many of the merchants use the merchant accounts and the users can pay directly through their debit or credit cards while some of them use gateway facility and allow their customers to pay from web application or web app to their merchant account. However, there is the third category of merchants who support both the payment mode and serve the customers as per their convenience.

A need of Payment gateway

It is obvious that you being the entrepreneur deal with online customers and every customer use the different payment options like credit or debit cards, paytm, mobikwik, freecharge or any other web app. To meet every customer’s ease, you need to have the account on every platform they are using. This can be troublesome and hectic to maintain multiple financial accounts.

Here, you might need one account that can be compatible with every type of payment mode the customer is adopting. Wow…what an easy idea. Yes! This is actually a payment gateway. One account for all payment modes.

What a payment gateway does?

  • The payment gateway redirects the customers to your merchant account when they shop online and get ready to pay.
  • The payment gateway performs every step of the transaction; right from deducting the amount from customer’s account to process it to your account.
  • Also, the payment gateway performs the currency conversion depending upon the country account between which the transaction is taking place.
  • Settles every transaction securely.

How much a payment gateway costs you?

There are many payment gateway providers who assist the startups to ease their transactions processes. But dear friend, no good thing comes for free. These payment gateway providers charge fees for their services. A point to note here is- there can be hidden fees also a gateway provider may charge you. So before picking any provider you should be cleared with every type of charges and work with the transparency.

Here are some basic fees that a provider surely charges:

  • Account Setup Charge
  • Monthly Charges
  • Registration charge
  • Transaction charge (Both successful and failed)
  • Refund Charge
  • Chargeback expense
  • If a transaction occurs beyond the set limit
  • Batch processing Charge
  • Amount Transfer Charge
  • Currency Conversion charge

Other than these charges:

  1. There can be termination fees in the case you cancel the contract before the end-period.
  2. Also, they charge few percents as their commission from a few pennies to few dollars and rupees.
  3. The total fees may depend upon the mode of payment as many gateway providers charge differently for different payment modes. For business cards, their fee is different while for master debit and credit cards the charges will be different.
  4. Also, there can be additional charges for the number of accounts you want to link to customer’s mode of payment.
  5. For example- if you are having the customers that are paying through their cards then you need to link your bank merchant account when a customer uses any web application like CCavenue, PayPal, paytm, payforU or any e-wallet mode, you need to link your account to ease the user’s efforts. In such cases, the gateway provider may charge you in bulk for linking bulk of the wallets to your account.

What points should keep in consideration while choosing the payment gateway for startups?

  1. Lengthy steps irritate the users.
  2. The transaction process should be easy and accomplished in the fewer steps.
  3. You must keep the time of processing into consideration. How long a transaction will take place at the gateway end as well as at the payer’s end.
  4. Since the financial transaction is critical therefore you must ensure your customers that their money is safely deducted and within the lesser time, the transaction would be successful.
  5. The gateway should transfer and process money worldwide. It should accept and process every country’s currencies.
  6. The payment gateway should provide the preventions against the fraud transactions. It should use CVV (Card Verification Value) for card payments while OTP for e-wallet transactions. For credit card verification, the payment gateway must use the Address Verification System (AVS).
  7. If you can add more advanced fraud protection feature to your payment gateway then it will an icing on the cake. You can use Hourly Velocity Filter for limiting the transactions per hour.
  8. Also, a Transaction IP Velocity Filter can identify and check the transaction from the same IP address in case of frequent transactions.

Summing-Up

The online customers use different payment modes depending on their ease and access. Therefore, you need to use such payment gateway option that can connect every customer to you in spite of the customer leaving you just because of inconvenience in payment. For smooth, seamless cash flow and secure transaction, the startups should adopt the right payment gateway. This is really a tough task and a wrong decision can spoil each bit of earning of the entrepreneurs.

The customers can be from any corner of the world therefore just spread your wings and reach the customers worldwide through the payment gateway.

Build your own payment gateway and serve the customers seamlessly. For any assistance, the team of skilled developers at mvantage is eager to serve you. 

Come to us to create the next thing together!

Visit our website  http://www.mvantage.co

or drop us a line at info@mvantage.co


ABOUT THE AUTHOR   

Harshit Khandelwal

Global Head – Strategic Partnership Harshit is a coffee addicted person. He loves exploring new ideas all the time. Harshit is an enthusiastic person who always shares his knowledge and experience with startups and progressive enterprises. He goes to any extend for his customers to solve their technology requirement.