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Choosing right payment gateway for your online store

payment-gateway-qtriangleStarting your e-commerce store is simply different from opening any brick and mortar store. The physical stores will demand you a space for establishing a store and several other requirements. On the contrary, an online store is different and as doesn’t require any storage space to start its functioning. A physical store will have a POS terminal for the payments coming from the customers shopping for different products procured, while at the online store, a payment gateway is needed to complete the online shopping. The following points can help you in choosing a good gateway for your eCommerce store:

Understand the difference between Payment Gateways and Merchant Accounts

A payment gateway is the one that approves or rejects your online payment including debit/credit card or even PayPal payments. Merchant accounts are the ones wherein the money is being held before it is deposited in the bank account. People are often confused between these two terms and to choose the right payment gateway, it is imperative to understand the difference between the two.

Check Your Budget

It is vital to consider the budget for your consideration while choosing a payment gateway for your e-commerce store. The fees could differ from one payment gateway to the other. The common fees structure often includes the fee like set up fees, transaction fee and monthly fees. Some payment gateways only charge a transaction fee, while the others charge the monthly fee. You are supposed to research it and find out a competent payment gateway that fits your budget limit. You can call one percent transaction fee to be less, however, for the bigger transaction it can pile up to a big amount. Hence, make a proper research before you choose for any payment gateway.

Check Fraud Element

Today, detecting fraud is one of the daunting realities faced by all the eCommerce business owners. Hence, you are supposed to select a payment gateway that renders maximum security options. Being a base for finding out the frauds, make sure your chosen payment gateway should have the best data encryption apart from keeping preventive measures like CVV verification and transaction billing.

Choose the Payment Gateways As per the Products You Sell

Before you choose any payment gateway, make sure you check whether it allows selling the products you have for your customers. Your payment gateway can deny selling any product if you sell any prohibited items. Hence, you should research the payment gateway and check whether you can sell your products or not to move on to buy it for your eCommerce business.

Your Checkout Process Determination

There are basically two types of payment gateways- hosted and non-hosted. One of the best examples of the former one is PayPal wherein it will take your online consumer off from the eCommerce Checkout page once he or she decides to pay for the product. Once the customer completes the transaction, he or she is redirected back to the online store. In the latter case, the customer has to enter the credit/debit card details directly on the checkout web page.


The above are some of the ways in which you can choose the best payment gateway for your eCommerce business. You can further research the subject to get into the fine details about choosing the best payment gateway.

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