How to choose a payment gateway

Which is the best payment gateway you should use for your ecommerce store? With dozens of options to choose from, it can be a complicated decision. Everyone who is new to ecommerce will tell you that the most difficult task isn’t only to decide which platform is the best one, but also the different factors that you need to take into consideration when deciding which gateway is best for your specific needs. Btw, we’ve also created a quiz to help you choose the right payment gateway for your needs. However, to learn more about each one, read on.
here are ten factors to consider:
1. Is the payment gateway supported on your ecommerce platform?
Which ecommerce platform are you going to be using? Something SaaS-based like Shopify or BigCommerce, perhaps? Or a self-hosted platform like WooCommerce or Magento? Whichever platform you’ve chosen, there will be a range of off-the-shelf plugins or extensions to help you integrate with major payment gateways.
Where possible, choose a payment gateway that already has a plugin for your platform.
2. Do you want customers to enter their payment details directly on your site?
From a technical point of view, there are three ways for you to take payment details from a customer.
a) Payment form on your site, details posted to your server
The smoothest checkout experience for customers is usually for them to enter their payment details into a normal form on your site. Unfortunately, this is the least secure way of doing things so you’ll need to take very serious security precautions to remain PCI compliant. Unless you’re turning over millions per year, this probably won’t be cost-effective.
b) iFrame or redirect
An alternative to take payment details directly through your site is to include putting the checkout form in a secure iFrame (within a page on your site) or redirecting customers to a hosted payment page. It’s harder to get the payment form to match the rest of your website with these approaches, but they’re also the most secure way of doing things.
c) Payment form on your site, details sent straight from browser to secure payment gateway (not via your server)
Lastly, a middle-ground solution is to use a solution such as the Stripe payment gateway’s Stripe.js. With Stripe.js, your customers type their card details into a form on a page served from your site, but the Stripe.js code communicates directly with the Stripe server. The customer’s card details never pass through your web server. Your security responsibilities will be less than with a normal form, but much more involved that with an iFrame or redirect.
Make sure you understand the version 3.0 PCI data security standards effective from 1st January 2015 which give more details about the different categories and what merchants using each of these checkout methods need to do to be PCI compliant.
3. Do you want a payment gateway and merchant account or an all-in-one payment service provider?
Some payment providers such as SagePay or PayPoint offer just a payment gateway (the bit of technology that sits between your website and the payment networks). They require you to have your own merchant account (the special bank account that the money passes into — different from your regular business bank account). Other payment providers such as PayPal and Stripe offer a combined payment gateway and merchant account (effectively you’re using their merchant account.)
Getting an account with one of the combined providers tends to be easier than getting a merchant account, and tends to involve fewer setup and monthly fees. The per-transaction fees tend to be higher, however. For these reasons, small merchants may want to start with a combined payment provider. Larger merchants can typically save money by having their own merchant account.
4. Do you want to offer PayPal?
You don’t necessarily need to limit yourself to one payment gateway. Lots of ecommerce platforms allow you to offer multiple payment options to your customers. The most popular ‘secondary’ option to offer is PayPal. Lots of consumers have PayPal accounts and many of them prefer to pay by PayPal rather than enter credit card details into yet another website. Even if you don’t use PayPal as your main payment gateway, consider offering PayPal as an alternative way for customers to pay. It can also be a good backup in case of any problems with your primary payment gateway or merchant account.
5. What are the fees?
Payment gateways and merchant accounts charge various different fees that can include monthly fees, fixed fees per transaction, variable fees based on a percentage of transaction amounts, and extra fees for things like chargebacks, payments from international cards, and more. You can use a comparison website such as PaymentBrain to get an overview of fees and ask to see a full schedule of char


Source: How to Choose a Payment Gateway for Your Ecommerce Store