(Last Updated On: June 3, 2021)
If you are thinking of starting an online business yourself, you must also know how to collect payments online. Here are 7 tips on how to choose the best online payment provider for your business.
Choosing a payment solution provider is a very specific decision. One shoe doesn’t fit all! In that case, how do you know which payment gateway best suits your needs?
If you are looking for a new payment service provider for your online business, consider these tips to help you make the right decision.
1. Where do you want to collect payments?
Do you have a website? Do you want to redirect your customer to pay you on another website where they proceed with the payment or do you want a pop up right there on your website so that your customer does not have to leave your website?
Whatever decision you take, ensure that the check-out experience is smooth and un-disruptive for the buyer. A bad purchase flow could lead to drop-offs and in-turn impact your sales negatively.
2. Integration for your website
What platform is your website or online store based on? There are various platforms you could build your website on – Magento, WordPress, Prestashop, Drupal, OpenCart or maybe something else. The payment solution you are choosing should be able to integrate with your platform and allow the customer a smooth buying/checkout experience.
3. Set-up Fees
Several online payment providers have different set-up fees – a first-time charge for integrating with your website and some also have annual maintenance charges, just like Credit Cards!
Don’t forget to consider how much your payment platform charges you to set up your account. There are payment providers that allow you to set up for free too!
Different online payment providers use various pricing models. Some charge you on a monthly basis, some charge you on a transaction basis, while others also charge on an annual basis.
What is the transaction fee your payment gateway is charging? You wouldn’t want to lose a large chunk of your profits in transaction fees.
There might be some recurring charges on a monthly/annual basis for using a payment gateway which generally ends up becoming a recurring pain. We suggest you choose a platform that offers you flat pricing without any hidden costs and charges.
5. Paperwork and Account Setup
When setting up with an online payment provider, especially a payment gateway, the providers might require you to submit business documents and many other such papers.
What is the paperwork required to set up your account with the payment service provider? Also, how long does it take?
If you are looking to start selling instantly, pick a payment platform with the least onboarding issues.
After all, online payments are about receiving these payments instantly. While you could just use personal methods like UPI or WhatsApp payments to allow your customers to pay you, this could greatly limit your options and your number of transactions.
Therefore, with an online payments platform, it is important to understand when and how you will receive your payments.
How regularly does the payment platform send your money to your account? It matters because you don’t want to run out of funds if the payout time is too long.
7. How Secure is your Online Payment Provider?
Your payment platform should comply with a bank-grade security level, like PCI DSS and provide a secure encrypted environment for payments. With the recent data breaches in news, you must employ a trustworthy payment provider to power your business and payments.
Two in one: Collect online payments with your online store:
1. Simple, fast integrations using plugins and clean APIs.
2. You can collect payments using an iframe on your site, without redirecting your customers anywhere else to pay.
3. Zero set-up fee. No hidden charges.
4. Honest flat pricing per transaction – payment gateway charges are flat 2%+ Rs.3
5. Just upload a digital copy of your PAN card and bank statement and get started instantly. No physical paperwork required.
6. Get regular payouts and notifications about your payments via text and emails.
7. With Instamojo, all payments are processed in a PCI-DSS compliant environment with 128-bit SSL encryption.
What are you waiting for? Get started with Instamojo in under 2 minutes!