Choosing the Right Payment Gateway

Choosing the Right Payment Gateway

6 Reasons Choosing the Right Payment Gateway and Integration is Critical

Payment gateways are the technology which ties together your membership site and the payment
network. Essentially, it creates a connection between the credit card being used to make a purchase and
the company that is authorizing the sale.

1. Eliminate the Risk of Recurring Payment Processing Issues

Not all payment gateways make it easy to set up recurring payment processing. A majority of
membership websites rely on some form of recurring payment be it weekly, monthly, or annually. Along
with processing the payment, it is important to select a payment gateway which alerts you when a
payment does not go through. Ideally, this process is automated and hands-free.
Source: https://woocommerce.com/2015/07/payment-gateway- guide/

2. Easily Adapt to a Growing Global Audience

The ability to accept debit and credit card payments provides a membership site with a global reach. The
global market share of credit cards and debit cards in circulation isn’t led by a single dominant brand
such as Visa or MasterCard but rather a combination of private label solutions which continue to grow in
popularity. Private label cards can be issued by specific banks, employers, and online retailers. If you
eliminate the combined total of private label solutions, Visa is responsible for the most purchase
transactions globally with MasterCard a distant second.

Source: https://www.nilsonreport.com/publication_chart_and_graphs_archive.php

3. Effective Integration Minimizes Friction

Effective integration of a payment processor will not only ensure payments are processed correctly but
also reduce purchase friction. Abandoned shopping cards are considered the single largest source of lost
revenue for e-commerce retailers and membership websites. The easiest way to reduce this is by
minimizing friction. For example, following simple design steps during the integration process such as
ensuring a mobile friendly design can greatly reduce friction. This is critical as sales from smaller screens
account for 30% of online revenues.
Source: http://www.securetrading.com/blog/5-common- friction-points- in-online- payment-processes/

4. Focus on Security During Integration

The payment gateway chosen by a website largely dictates what type of security needs to take place on
the website itself. If the website does not capture or store any sensitive data, it may not actually need
an SSL certificate to enhance security because all the sensitive information is handled by the payment
processor. For example, PayPal is responsible for capturing and storing all customer data so it is never
stored in the website database. Every off-site payment processor has their own security standards,
certificates, and methods of securely passing data between a website and the payment processor. It is
critical to look at the payment processors security standards during integration to determine what type
of security needs to exist on the membership website.

Source: https://woocommerce.com/2015/12/ssl-certificates- for-ecommerce/

5. Multiple Payment Gateways Provide a Necessary Redundancy

There are several advantages to using multiple payment gateways for single membership site. The most
commonly cited benefit is the ability to access all potential buyers by adding local popular payment
methods. It also allows for a better buying experience as it offers multiple currencies and checkout
languages. Multiple payment gateways also provide a necessary redundancy to process transactions. If a
website only has one payment gateway and it goes down or the websites account is frozen and then no
payments will be processed and the potential for losing significant sales volume exists. Integrating
multiple payment gateways eliminates this risk because there is always a backup option which can be
activated at a moment’s notice because it is already been integrated with the membership site.
https://www.quora.com/What-are- the-advantages- of-having- multiple-payment- gateways

6. Effective Payment Gateway Integration Eliminates Overflow Problems

Working with more than one payment gateway is a sound business practice because it provides a built-
in overflow option when the primary payment gateway is under duress, underperforming, or down
completely. Using a backup gateway also provides the ability to handle overflow from sales spikes due to a specific marketing campaign, seasonality, or natural membership site growth.
Source: https://blog.spreedly.com/2017/03/30/multiple-payment- gateways-advantages/

Choosing the Right Payment Gateway

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