Integrating Payment Gateway For E-commerce Sites A Complete Guide

Payment gateways are used to handle online transactions smoothly and in a more secure way on the eCommerce platforms. They not only offer convenience and security to accept and make payments but also offer numerous other benefits. This is the reason why more and more e-merchants and eCommerce business owners are integrating the best payment gateways to their platforms. If you haven’t integrated one yet, then this eCommerce payment gateway integration guide is for you. Here, you will learn everything you need to know before incorporating a secured payment gateway into your eCommerce website. Let’s begin! 

Ecommerce sites use payment gateways to offer a seamless payment experience to the customers. 

What Is a Payment Gateway? Why Do You Need One? 

A payment gateway is a system or software that connects your e-commerce store with your and your customer’s bank. In simple words, it acts as an interface for the involved parties in a transaction and allows quick, secure and hassle-free payment processing. 

Now, coming to the question, why do you need to integrate a reliable payment gateway in your e-store? 

According to Statista, nearly 42% of global customers prefer credit card payment methods, 28% like to pay with their debit cards and about 39% prefer using other electronic payment modes such as e-wallets, UPIs, e-checks, etc. 

As you can see, customers prefer making online payments, so it is extremely crucial to offer them a transaction processing environment where they can make payments using the method they like. Also, they should be ensured that their sensitive personal information and banking data is kept safe on the platform and transactional network. And all of this is only possible by using a payment gateway. 

How Does Payment Gateway Work In E-commerce Platforms?

A payment gateway has the ability to perform complex transactional operations concerning both customers and merchants in a couple of seconds. It encrypts confidential data like card details and banking information to prevent it from cyber frauds hence making all the transactions secure and safe. 

On reaching the checkout page, customers select their preferred payment method and once it is done,  they are directed to the payment processor’s page where it sends a request to the customer’s bank. Once the requests are approved by the bank, the payment gateway securely transfers the amount from the customer’s bank to the merchant’s bank. Although it’s a much more complicated process, it happens in seconds. 

How To Integrate Payment Gateway To An ECommerce Site? 

Integrating an online payment gateway into an eCommerce website is not as complex as it sounds. In reality, it is a simple and straightforward process. The best payment gateways in India offer easy and hassle-free installation through a variety of tools, website plugins, SDKs and so on. Further, the reputed payment gateway providers also offer in-depth guides for computer languages like Ruby, Python, C# etc. and proper support for setting up your eCommerce site as smoothly as possible. The best part is, you don’t need to pay a hefty initial installation charge if you select the right payment gateway provider. 

Before Integrating A Payment Gateway To ECommerce Site

Payment gateways allow merchants to accept payments via multiple methods. 

As mentioned above, most payment gateways of today are easy to integrate and use. All you need to do is find the right payment gateway. Below are some points to consider while selecting an online payment gateway :

1. Type of Payment Gateway 

There are mainly three types of payment gateways available: integrated payment gateways, off-website payment gateways and hosted payment gateways. 

Hosted payment gateways are the ones that redirect the customers to the payment processor’s platforms. Further, the payment service provider is responsible for compliance and security requirements. 

Next, the off-website payment gateways allow you to collect the payments off your website. These payment gateways support a multitude of online payment modes such as UPI, net banking, e-wallets, etc. 

On the other hand, an integrated payment gateway links directly to the eCommerce platform through a robust API provided by the gateway itself. This type of payment gateways provide a seamless and hassle-free digital payment experience to the customers as they don’t need to leave the site for making payments. However, in these payment gateways, the merchants are responsible for security and compliance. Also, they need to procure a separate merchant account. 

Although integrated payment gateways take a bit of time to set up, they offer a top-notch payment processing experience to the customers and allows merchants to accept payments in a seamless manner. Further, the hosted payment gateways are easy to set up, but they redirect customers to a different site, which can hinder their shopping experience. 

2. E-Commerce Platform Compatibility

Another important thing to check before making any final decision is whether or not the preferred payment gateway is supported by your e-store or platform. There are different types of extensions and plugins for integrating online payment gateways to the websites. So, at the time of making a selection, you need to make sure that it has an extension or plugin that is compatible with your platform. 

It is better to check and prevent compatibility issues in advance otherwise you end up wasting your time and money on additional set-ups. 

3. Payment Options and Billing Support 

There are hundreds of payment methods that are acceptable across the world. Along with the well-regarded names like Mastercard and Visa, there are numerous other payment options based on the location of your customers. 

If you’re operating on a global level, then it is extremely important to have a payment gateway that accepts the most popular payment options of your target customers. The reason behind this is simple: when customers don’t find their preferred payment option on a site, they leave it without making any purchase and end up purchasing from a competitor site. So, if you don’t want an increased cart abandonment rate, then select a payment gateway that supports multiple payment methods. 

Along with it, your payment gateway should also offer billing support for memberships and subscriptions. In addition, there should be options to collect recurring payments and make mass payouts to the vendors, suppliers, employees and other stakeholders. 

4. Transaction Fees and Contract Duration

When choosing a payment gateway, it is very important to evaluate the transaction fee on different types of payments. A good idea is to find a payment gateway that charges a reasonable fee per transaction. This is a very important aspect because these small numbers can add up in a massive amount in the long run. For example: a transaction fee of 2% might look small but it can be a real pain in the case of luxury retailers.

5. Security

The security of a payment gateway is an aspect that should never be compromised because it is the biggest reason for having a payment gateway. Make sure that your payment gateway provider is compliant with PCI-DSS standards and offers robust security features like fraud detection, tokenization, data encryption, etc. 

6. Customer Support

Last but definitely not least, check for customer support. The preferred payment gateway provider should be readily available and offer instant technical support, in case of any issue. There should be multiple customer support channels like email, chat, call and even live support. 

Once all of the above-mentioned points are checked, you can make your final decision and proceed with integration. The right payment gateway provider will offer an easy and quick initial set-up experience. All you need to do is find the most reliable payment gateway service using this detailed guide. We hope it helps!