October 26, 2021

How to Choose a Good Payment Gateway

Ecommerce is becoming more popular as businesses and individuals are selling and promoting their products online. As they build their websites to have a venue in transacting business, one of the things they will come across is to choose a good payment gateway.

payment gatewaySimply put, a payment gateway enables a buyer to pay for his products that he would like to purchase. A payment gateway server is also responsible in making sure that information or transactions done are confidential between the parties concerned. Security of customer and business is a priority when looking into what gateway would best serve the website.

Payment Options

First things first, there are different ways that a product can be paid for online.

  • Credit Cards.

One of the ways is through credit cards. While paying with credit cards is convenient, a business has to make sure that they qualify to have a facility for such transaction. A business will need to apply for one through the bank to have what is called an internet merchant facility. An internet merchant facility is different from standard ones because it needs to be able to process credit cards. The fees paid for an internet merchant facility is higher than a regular merchant account because there are higher risks of paying online.

If you are just starting out then I do NOT recommend a merchant account.  They nickle and dime you on fees and YOU are responsible for making sure your customer’s information is secure.  You are much better of using a payment gateway to accept credit cards online instead of  a merchant account. 

  • Third party gateways.

This is a service that acts on behalf the merchant. It is a computer system that looks into and acknowledges credit cards. It uses internet connection. Thus, over the internet it is sometimes also called IP payment gateway.

  • Other modes of payment.

This can include checks, payment upon delivery, debit, and others.

An ecommerce business will decide on what is the best mode of payment for easy and safe transactions between them and the buyer.

Best Payment Gateway Pay PalThe Best Choice

There are several payment gateways online. One of the leading gateways is PayPal and it’s the one I recommend for most people especially those who are just starting out.   It is owned by eBay, is very reputable and it’s free to get an account with them.  It is one of the biggest gateways in the world if not the biggest.  It is used by businesses both big and small.

Here are the advantages of using PayPal:

  1. Secured information. After choosing products to purchase, a customer will simply need to write his personal and credit card information. With the use of Secure Sockets Layer (SSL) protocol, the information given will be encrypted to a secret code of 128-bits which is the highest one currently available commercially. This encoding happens once which lessens the chances of your credit card or bank numbers being stolen. All your information is private and secured.
  2. Multiple Accounts accepted. One of the disadvantages of using credit cards that is tied up to the bank is that it might be declined due to lack of funds needed. A PayPal account can find the amount needed through your credit card, bank accounts, and other sources as long as it is registered under them. Customers will be more confident to buy online knowing that they have the necessary resources.
  3. Speed. PayPal allows you to send money quickly without the high cost of other money senders. One has the convenience of sending money to a loved from the comfort of your own; there is no need to waste extra gas to deposit it at the bank or other venues.
  4. Partnered with eBay. eBay is known worldwide and is known for its ease of use and numerous products that can be found. With PayPal it is also easy to take part of auctions by placing your bid.
  5. Free. There is no cost in creating a PayPal account; this payment gateway is free! All one needs to do is visit their website and follow the steps to setting up an account.  Tip:  If you want to accept credit cards online from your customers then make sure to set up a free business account not a personal account.  Even if you don’t have a business name you can still set up a business account and doing so allows you to accept credit cards even from those who don’t have a Pay Pal account.

Setting a PayPal account is quick, easy, and is free as mentioned above. Most businesses online use their services and is known worldwide as a means of transaction. They have a very good anti-fraud protection which means fewer risks. PayPal’s Payflow Payment is known to have brought $74 billion online through businesses. Transacting business online through a payment gateway has never been easier or more secure.


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