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Payment Gateways: Key to success for an e-store

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If you are planning to set up your online store, you must choose a suitable payment gateway, which is an indispensable part of an e-commerce website. If you do not know or know a little about payment gateway and its integration to e-commerce website, this article will be of a great help to you. This is my first article on Payment Gateways, which will cover various payment gateways operating worldwide and their features in nutshell. The second part will cover Payment Gateway Integration. So, go through this article and kick-start your e-commerce website. Later we will discuss on various available online cart management systems, where you can set-up your own e-store with a little technical expertise. Now, let us discuss various payment gateways from which you have to choose one according to your suitability and needs.

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In nutshell, a payment gateway is an online service that provides merchants a platform to accept credit card and other forms of Internet transactions securely routed through their website. Therefore, the most important part of setting-up an online store is integration of an e-commerce website with payment gateway. This integration takes place through a complex code shared by the payment gateway which is to be embedded in the e-commerce website, which after clicking on payment button leads the customer to that particular payment gateway website where transaction takes place and a confirmation key is sent back by the gateway website on the basis of which orders are confirmed. That confirmation key is the certificate of the gateway of the receipt of the money on behalf of the merchant. One must remember, if the payment options on e-store is not set up in the correctly, one can suffer loss of orders placed on e-store. This means a significant drop in sales, because of unsatisfied customers. Implementing the right payment gateways, however, can prove a key ensuring long-term success of online business.

Getting the trust of online customers is the prime moto of an online store for which payment reliability and assurance is necessary. Later presentation of saleable items on the store play the major role in attracting customers. In fact later one looks like the most important factor. This is how an online merchant fails because losing credibility in online market is just a matter of seconds. Most of the merchants make the same mistake and later they get dissolved in the deep ocean. They focus and channelize their energy in presentation of their items and forget to get a payment gateway that is suitable to geographical area of operation and in terms of features needed for their site. For example if the area of operation is global, then one must choose a payment gateway with multi-currency support. In this case, one must know the charges applicable on each transaction. One must avoid such payment gateway of plan, which may put business to a loss. It is therefore, necessary to choose a suitable plan or a payment gateway.

Since not all the payment gateways functions in the same manner, it’s crucial to make the right choice. Some factors listed below may be taken into consideration while choosing the correct payment gateway:

Check Transaction fees associated with a payment gateway.
Check Area of operation of e-store. Chose single currecy option if operation is domestic and multi-currency if the operation is global.


Check suitable channel options for accepting payment as per need. Available channels are SMS, Email, Whatsapp, Facebook, Website & more.
Check suitable payment modes as per need. Available modes are credit card, debit card, PayPal, Countless Wallets, etc.
Check the payment gateway does not require users to fill up unnecessary fields while authorising transaction.
Please do not confuse with the terms Channels and Modes of Payment. Channels are the support of the gateway on various applications while the modes of payment are the types of digital money used by customers while making payments. Ensure to choose only the least possible ones. Do not choose all available payment modes if store is to be run with least man-power as it takes a lot of time while reconciling the transactions and getting the credits to a common account for accounting. It is therefore, recommended to choose Credit Cards, Debit Cards, Internet Banking and a few popular wallets only or lessen the modes if required. If there is man-power and financial constraints, internet banking option may be omitted as it requires opening of current accounts in the banks for which there is support to accept payment, while only one current account may be sufficient to accept payment from all other modes excluding internet banking.

Now let us discuss the top payment gateways available for choice as per need. We will discuss the features as well in brief. In my next article, I will cover the charges associated with various payment gateways. So, please do follow on facebook, google+ or subscribe to my blog in order to receive notification as soon as I publish the new article. Now the endless list of payment gateways begins as follows with some most important and trusted and widely accepted payment gateways worldwide.

P K Prabhakar
Writer is a Banker by profession and has a lot of affiliations with software and technology, history, politics, social services, etc.

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