Before the Internet, one of the major hurdles of starting a business was establishing ways to accept credit cards from customers. Businesses that could not accept credit cards often suffered, and those that relied solely on cash and checks often had to deal with fraud. After the advent of the Internet, many companies moved at least some of their operations online: however, it still remains difficult to accept payments. Fortunately, a number of companies have bridged the gap in recent years, and accepting online payments has never been easier. Choosing the right online payment gateway will require some work; here are a few tips to consider.
Initial and monthly costs
Compared to older methods of accepting credit cards and online payments, modern options are relatively inexpensive. That said, the cost may be a bit much for new businesses to handle. When comparing different gateway options, it is important to determine whether the initial and monthly fees are affordable. However, there are other costs to take into account.
Cost per transaction
Many online payment gateways charge a fraction of each transaction in fees. Because of this, businesses that perform a large number of transactions may find these costs to be prohibitively expensive. For businesses that are expected to grow significantly in the future, high fees may be a deterrent. In some cases, it may be best to pay a higher flat fee than to pay a higher percentage of each transaction.
Another consideration for businesses is how well a payment gateway scales. Established payment gateways can generally withstand high volumes of traffic, but newer ones may have more difficulty. In addition, fees sometimes go up based on volume, and some providers may rely on customers’ reluctance to switch to a new provider in order to charge higher fees. It is important to think about the future when considering online payment gateways.
Fortunately for businesses, competition is fierce among online payment gateways, and fees are relatively low as a result. However, there are a variety of options to consider, and choosing the best one for a particular business can be tremendously beneficial. By taking time to research and discover the best option, you can choose an online payment provider and move on to more important business tasks.