Payment gateways act as a channel that assists customers to make payments online. A thorough research would help you shortlist the available options and choose the right one in an effortless manner.
What does a store need to have to implement a payment gateway?
In order to transfer money received from the customer to the bank account of the store, most of the payment gateway providers require two things. These are a merchant account and a bank account that directly accepts credit card payments.
Types of payment gateways:
There are mainly two types of payment gateway providers: modern and classic.
With a modern payment gateway, an online store only needs a valid account in the bank to accept credit card payments. These gateways are easy to install and configure but charges higher per-transaction fees than classic payment gateways. Some of the examples of modern payment gateways are Stripe, PayPal, and Simplify Commerce.
By installing this payment gateway, a store is saved from all the hassles involved in changing bank accounts and setting up any software to run on the payment side. The other main advantage is that integration of these gateways with the infrastructure of your store happens quickly.
One downside is that as these gateways redirect customers to off-site for making a payment, it reduces the rate of conversion for some stores.
Classic payment gateway
As in classic payment gateways, a store needs to set up a valid bank account and a merchant account for the receipt of money, it can make the process cumbersome. These gateways take a long time in the installation and require mandatory technical knowledge to perform its integration via API.
Some of the popular classic payment gateways are WorldPay, Authorize.Net, and 2Checkout.
The low per-transaction fee is one attractive feature in these gateways. So, all you need to decide is, whether a little hassle involved in classic payment gateway is worth the high fees charged by modern payment gateway.
Thus, by keeping this useful information in mind, your search for the right payment gateway would become uncomplicated and efficient.