How to pick the best payment gateway for your company
There are many avenues of payment on the market currently that allow your clients to make payment for the services and products they order from your business. Basic payment methods like wire transfers (Electronic Funds Transfers), cash, direct bank deposit and cheques are accepted by most businesses and offer your clients a good base of general payment methods. But it is always a good thing to give your customers choice.
There are a myriad of options available to the business owner when it comes to receiving payments online. Traditional methods like wire transfer, cheque, cash and direct bank deposit are great basic payment methods for any business, but because there are so many great online payment gateways out there it is possibly a good idea to offer at least one for you clients to use.
Location, location, location
First on the list is identifying what kind of clients your company has. Are most of your customers based in your own region or country or do the majority of your sales come from clients that are outside of your country or close geographic region.
It is also important to ask yourself what currency your clients will be paying you in. Most payment gateways have support for specific currencies only. So always pick one that supports the currencies your clients will want to pay in.
Once-off vs recurring payment
Do you sell a product or service that the client is required to make a single payment for or is the product or service paid for in installments? i.e. comes as part of a recurring subscription that requires multiple successive payments.
Selling products or services that require a once-off payment only means you can look at a payment gateway that allows your clients to make immediate secure payments online. This is usually a gateway that allows payment via credit card or a service like PayPal that provides instant secure payments for individuals who have accounts with them.
If your customers need to be billed on a recurring basis for the products or services you sell - e.g. a monthly subscription to a magazine - you can look into a payment gateway that facilitates the collection,debiting of recurring debit orders to credit cards or bank accounts. Most of these services only support certain currencies, so make sure you select one that supports collections in the currencies your clients need to be charged in.
General service and fees
So you have decided on a handful of gateways that meet your currency, target market and payment type requirements. To assist you make your final decision you can use the tips below:
- Transaction fees: Investigate the fees each gateway charges and compare them. Some gateways also have security deposits that need to be put in place and strict withdrawal policies, so check it out before committing.
- Reporting: Does the gateway provide suitable information for accurate account reconciliation? Do they inform you of failed payments and securely store client payment information.
- Some payment gateways supply you with an integrated merchant account while others require you to have one with a bank. Find out what the requirements are and if you qualify for an account before joining.
- Do they comply with local and international regulations governing payment gateways? Check with your local governing organization to make sure the payment gateway you want to use complies.
There are a myriad of options available to the business owner when it comes to receiving payments online. Traditional methods like wire transfer, cheque, cash and direct bank deposit are great basic payment methods for any business, but because there are so many great online payment gateways out there it is possibly a good idea to offer at least one for you clients to use.
Location, location, location
First on the list is identifying what kind of clients your company has. Are most of your customers based in your own region or country or do the majority of your sales come from clients that are outside of your country or close geographic region.
It is also important to ask yourself what currency your clients will be paying you in. Most payment gateways have support for specific currencies only. So always pick one that supports the currencies your clients will want to pay in.
Once-off vs recurring payment
Do you sell a product or service that the client is required to make a single payment for or is the product or service paid for in installments? i.e. comes as part of a recurring subscription that requires multiple successive payments.
Selling products or services that require a once-off payment only means you can look at a payment gateway that allows your clients to make immediate secure payments online. This is usually a gateway that allows payment via credit card or a service like PayPal that provides instant secure payments for individuals who have accounts with them.
If your customers need to be billed on a recurring basis for the products or services you sell - e.g. a monthly subscription to a magazine - you can look into a payment gateway that facilitates the collection,debiting of recurring debit orders to credit cards or bank accounts. Most of these services only support certain currencies, so make sure you select one that supports collections in the currencies your clients need to be charged in.
General service and fees
So you have decided on a handful of gateways that meet your currency, target market and payment type requirements. To assist you make your final decision you can use the tips below:
- Transaction fees: Investigate the fees each gateway charges and compare them. Some gateways also have security deposits that need to be put in place and strict withdrawal policies, so check it out before committing.
- Reporting: Does the gateway provide suitable information for accurate account reconciliation? Do they inform you of failed payments and securely store client payment information.
- Some payment gateways supply you with an integrated merchant account while others require you to have one with a bank. Find out what the requirements are and if you qualify for an account before joining.
- Do they comply with local and international regulations governing payment gateways? Check with your local governing organization to make sure the payment gateway you want to use complies.
About the Author:
Bill Bapsnill has been in the online invoicing industry for many decades. He recommends that you choose payment gateways based on location, cost and the product or service you are looking to sell.