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10 Questions To Find the Right Payment Gateway For Your Business

Posted: June 28, 2021 | Updated: June 28, 2021

Have you been looking for a payment gateway that can help you collect card payments for your business? You’ll need to look at what you’re getting out of a suitable provider. Here are ten questions you can ask to help you see who you should be hiring for your needs. 

  1. What will it cost for you to set up your plans and to process payments?

Each gateway will charge different setup fees for work. These include charges to secure your account and to test your connection. You could spend at least $1,000 to set up your gateway.

A gateway will also charge a percentage of your transactions. The percentage will vary surrounding the type of card, the card network, and your risk level. You may spend more to process these payments if you are at a higher risk of chargebacks and other threats.

A gateway may charge about 2 to 3 percent for each transaction. A flat fee of 10 to 30 cents may also go alongside that charge. The totals can add up after a while, as they can cut away from your cash flow and profit margin.

  1. How will you collect your payments?

Payment gateways come with different platforms for how they will help you collect payments. Some systems can move your funds through an escrow system. A system will withhold your funds and will deliver them to you when the funds are ready to be safely transferred.

You could also use a hosted payment page you can redirect your customers to when asking for data. It doesn’t take as much time to integrate this option.

The way you collect your payments can influence how long it takes for you to see your funds. Some providers can hold your funds or a percentage of them for up to thirty days. The timeframe can increase based on your risk and the payment network’s rate of traffic.

The gateway you choose should provide prompt access to your funds. It should also be transparent when explaining how you’re collecting your funds with details on where they are coming.

  1. What are the security features?

All payment gateways should offer PCI DSS compliance. Proper compliance means a gateway will protect all card data and will prevent cardholder data from being stolen or otherwise mishandled. All cardholder content will only be made accessible on a need-to-know basis. All CVV numbers must also be discarded after use to ensure potential thieves cannot steal this value needed for CNP transactions.

Some processors also use tokenization to protect cardholder data. Tokenization replaces card info with unique strings of numbers that hackers cannot decode or utilize.

  1. What fees are there beyond the card processing charges?

Many gateways will charge various fees for their services. The charges go beyond what you would spend when first setting up your account. These include PCI compliance fees, data access fees, and other assorted charges. You’ll also have to pay fees on chargebacks, but you won’t spend anything on those if you never deal with chargebacks. All fees cover the costs to operate the network while also covering possible risks you pose on the network.

The totals you will spend on these fees should be fixed, unlike what you would spend on your payment processor you hire should be transparent and direct over what fees you would spend on services before you start.

  1. How can your processor screen fraudulent activities?

All businesses are at risk of credit card fraud, although some industries may be at a greater threat. A processor should provide suitable screening tools to help you prevent fraudulent activities from impacting your business. A gateway can include support for CVV transactions, two-form authentication, and other features that reduce the risk of fraud.

  1. Can your processor handle international payments?

Some processors can support international payments. These include ones that support multiple languages and currencies. You can use this if you plan on doing business with people in multiple countries. But some processors may also charge fees for handling different currencies or cross-border transaction efforts.

  1. How does the customer service department work?

The customer service department should be available to help you with whatever transactions you want to complete. It should offer multiple ways to reach them, including by phone or email. The customer support team should be easy to access at any time.

The help should also be free to all members. Any group that pays extra to help someone access a customer service line might not be legitimate.

  1. Can a gateway work with whatever features you have in your current system?

Not all payment gateways are compliant with whatever systems you might incorporate. You might need unique hardware or software to read some features. A quality gateway can work alongside whatever hardware or programs you are using now. The system provides quality help and reduces the need to develop new programs or setups for work.

  1. Does a gateway support recurring billing?

Recurring billing entails automatically billing customers for certain things. Subscription-based systems regularly use recurring billing features to ensure they collect funds from customers as necessary. Look at whether your gateway or processor can handle this feature if you plan on offering a recurring billing service.

  1. Can your gateway manage mobile payments?

The last point to review involves how well a gateway can handle mobile payments. A gateway can include a dedicated app or hardware program that can work on mobile phones, tablets, and other portable devices. It helps you collect payment data and content from anywhere.

These factors are good points to see when looking at how you’re going to handle your mobile payments. Be sure when finding a suitable solution that you have an idea of what you want to get from your business. It will be easy to process mobile payments if you know what is coming out of your setup.

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