Top 11 things to Consider when Choosing the Best Payment Gateway

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When setting up an online store or developing a product, choosing the best payment gateway is one of the first significant business decisions you need to make. Although all payment gateways look the same and claim to be the best payment gateways, you should carefully evaluate the available options based on your specific business needs.

  • Do you accept international payments?
  • Do you want to offer wallets like Paytm as a payment option on your checkout page?
  • Do you want to offer “buy now, pay later” options to ensure a smooth payment experience?
  • Does your company have a high average order value that requires multiple EMI options?
  • Does your business need to collect recurring payments?

Once you understand your needs, you can assess your options. Here’s a list of 10 things you should consider when choosing the best payment gateway for your business. We’ve compiled 10 things you should consider before selecting a payment gateway.

1. Payment Methods

The most popular payment methods for domestic transactions are online banking, cards (Visa and Mastercard), and UPI. However, some customers also prefer to pay with other payment methods, such as mobile wallets like PayTM, Ola Money, Jio Money, etc., and other cards like Rupay, American Express, Maestro, Diners Club, and Discover.

A more comprehensive choice of payment methods ensures that the customer’s preferred payment method is available. Therefore, you should always check if there are lesser-known payment methods available in addition to the most popular ones. A more significant number of payment methods leads to a higher success rate.

2. International transactions

If you have customers outside India or customers in India who use international cards, you must support global payments. The main challenge with international payments is that it is difficult – most banks and payment gateways are reluctant to offer international prices and often require large deposits and set-up fees.

Customers outside India prefer to pay in local currency. That way, they know the exact amount they are paying. It requires international payment gateways to offer several different currencies as payment currency, while the final payment amount converts into INR for the merchant’s convenience.

3. International Payment Gateway

The best payment gateway for international payments supports multiple currencies and is easy to set up. Paypal is the most trusted and popular payment method for consumers worldwide.

In addition to supporting all payment methods, including credit cards and direct debit from bank accounts, Paypal also offers buyer protection. So if you offer PayPal as a checkout option, you can significantly increase your conversion rate.

4. Clarify Payment Gateways

Settlement time is the time it takes for the seller’s account to be credited after the buyer’s account has been debited.

To understand the payment cycle, take an example of a customer paying with an HDFC debit card. In this case, the payment gateway stores the information when the customer enters the payment details.

The payment gateway encrypts the data and sends it securely to HDFC for verification. If the HDFC approves the transaction, the money is transferred from the HDFC to the payment gateway and then from the payment gateway to the merchant’s account. This method usually takes between two and four working days.

5. Integration Support for your e-commerce platforms

If you sell on an e-commerce platform such as Shopify, Magento, WordPress, etc., make sure the payment gateway you choose has plugin integrations available for the e-commerce platform.

6. Quick Onboarding

Many payment gateway providers promise 2-3 minute onboarding, but it can take several days before your account is activated. Also, check with the payment gateway provider about documentation requirements, approvals, and other formalities, as these can cause delays in starting your account.

7. Reliable and Timely Support

Make sure your payment gateway offers consistent support. You may want to consider talking to other merchants who are already using that provider’s payment gateway services. In addition, it is helpful to have a dedicated account manager who will be your single point of contact during integration and going live. Some platforms also offer real-time support by providing communication options such as live chat, email, etc.

8. Allied payment services

In addition to accepting payments from customers, businesses have other needs, such as processing order refunds, employee payroll, market settlements, collecting recurring payments, etc. Many payment solutions that offer payment gateway services also provide automatic collection and reconciliation, bulk payments, marketplace settlements, etc. Based on your current needs and an understanding of your future needs, consider a provider who can offer all of these services and become a single platform for your payment needs.

9. Analyse

As your business grows, you need a payment gateway that shares regular analytics for your transactions. Some payment gateways have developed intelligent analytics dashboards that not only show you a summary of commerce but also give you information such as your payment volume, number of transactions, and breakdown of your payments across payment methods (cards, online banking, wallets, etc.) and platforms (iOS, Android, desktop), etc. In addition, you can analyze this data grouped by hours, days, weeks, or months over any period.

10. Payment experience

A seamless checkout experience – hosted on the merchant’s website – can help you offer a white-label checkout experience with your custom layout and branding. It affects your customers’ perception of your online shop or product.

11. Pricing

In general, a payment gateway charges between 2 and 3% per transaction. Depending on the payment method you wish and the volume of your transactions, you can always opt for a customized plan. There may be recurring and annual maintenance fees, and some platforms may charge for free installation.


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I’m Olivia Cuthbert, and I am a technical consultant and writer working for PixelCrayons. I am passionate about exploring and writing about innovation & technology and have been in this field for 4+ years.

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