Whether you are owning an ecommerce platform or any other form of business, you would want to deploy safe and easy-to-use payment system which caters to your business needs and also satisfies your customers. Today, electronic medium is considered as the safest modes of payment system which is capable of processing both credit & debit cards; one such system is payment gateway platform.
Payment gateway, an important aspect for an electronic payment card processing, is a front-end technology that processes transactions quickly and securely. It transfers the vital data between mobile/website devices and banks/payment processors or vice-versa.
The key question among the businesses (especially startups or small) is, why opt for this approach among a pool of payment methods?
Some of the reasons to get started with payment gateway platform are:
-
Integration with Multiple Processors- While selecting the acquiring bank, integration to various payment processors provide merchants with multiple opportunities to choose processors that they want to use to create a settlement account. Since different processors have different interchange fee rates, you can provide competitive transaction fee rates to your merchants.
-
Security - Every trader looks for a secure Payment Gateway that helps them gain customer's confidence.
-
Scalability - An ideal Payment Gateway should allow the merchant to adapt to changing online payment processing methods.
-
Dispute management - Merchants will be benefited from a Payment Gateway that has an interface to handle disputes from an issuing bank.
Today, there are a vast array of payment gateways (such as hosted, unhosted gateway, etc.) in the market, each with their own pros and cons. Payment Gateway has given you the freedom to create a custom Gateway that suits your business.
Creating a custom payment is easier said than done. A lot of elements goes into the process. Let’s have a brief look at the steps involved in the creation of custom payment gateway.
-
Registering the gateway: Register the payment gateway to make it available for use.
-
Step up the credit card form: Provide the credit card details to the hosting payment gateway platform. Some platforms accept the details on the checkout page and some other redirect the user to a new or payment page.
-
Processing the payment: When a purchase is made via a gateway, a gateway specific function is executed which processes the payment.
-
Setup the gateway settings: Store API keys or your email address for apt functioning of payment gateways.
However, developing a custom Payment Gateway has several benefits and drawbacks. Some of the pros & cons listed are:
Pros-
Savings on Payment Gateway Fees - Off-the-shell Payment Gateways generally have a high sign-up costs associated with every transaction that is being made. This eventually eats up a huge portion of your profit. With customised payment gateway, you can save on such long-term fees and sign-up costs.
Custom Features-Though you manage to find a reasonably priced off-the-shelf Payment Gateway that provides low transaction fees, you may find yourself restricted by the limitations of the gateway. With custom Payment Gateway, you can add new features as per your business needs and requirements.
Offer Payment Gateway Products - With custom Payment Gateway you can sell your Payment Gateway as a product to other agents.
Cons-
Payment Gateway Development Costs – Developing a custom Payment Gateway requires additional development and maintenance costs. The initial cost of developing custom Payment Gateway is higher than paying the fees to use an external payment gateway. However, by opting custom Payment Gateway, you are investing in a long-term product that is optimized to meet your specific business demands.
Payment Processor Integration and Certification Cost – Integrating with payment processors is normally a time-consuming process. In addition, it requires going through lengthy certification process. But using an off-the-shelf Payment Gateway is simpler and faster, as you will be primarily paying for the convenience of using an existing gateway.
Handle Settlement Reports – Custom payment processors send settlement reports in a raw format which is difficult to handle.
Owning a custom payment gateway can add value to your business. Get your custom payment gateway now and secure your business.