How to Set Up a Payment Gateway

Securing online transactions is crucial for any business that operates online (read: every company that operates today!) As more and more customers expect seamless payment options when using websites or mobile applications, enterprises need robust yet easy-to-use payment processing gateways to ensure their customers are able to spend their money as and when they wish. However, setting up a secure and fully functional gateway can cause all kinds of headaches, especially if you don’t know your APIs from your HTTPS! Moreover, entrepreneurs are often more focused on growing their businesses rather than dealing with the nitty-gritty details that are needed in the background. This post explores the ins and outs of selecting and implementing the perfect option for your business, breaking down the end-to-end processes into clear and actionable steps. You will learn about the significance of putting in the effort to select a gateway, what to look for, and how to set one up when you have settled on one that fits your requirements.

The Significance Of Carefully Considering One’s Options

It should go without saying, but careful consideration must be given when selecting a payment processor for an online business. With security, ease of use, and reliability being top priorities, merchants need to weigh various factors in choosing the best-fit provider. Payment processing is the lifeline of any e-commerce operation or any that collects money from online transactions. If they are not handled securely and efficiently, it can significantly damage a brand’s reputation and negatively impact the bottom line (not to mention that you could be liable for any issue surrounding customer data). Features like supported payment methods, transaction speed, and customer support become critical in delivering optimal checkout experiences.

Fortunately, you have numerous options to take advantage of, including many of the established players like Stripe or PayPal. However, it could be worth considering alternative options that are eager for business and have a vested interest in getting you set up effectively and offering support throughout your partnership. According to We are Planet, they provide vital vendors with dedicated account management in addition to all the other standard trappings that a processor ought to have. It is this kind of support that you should be looking for when on the hunt for one to sync up with your operation. Compliance is another major aspect to evaluate when conducting your search. Payment gateways must adhere to strict industry regulations to protect sensitive financial data. Those lacking proper certification could leave stores vulnerable to cyberattacks and the costly litigation and penalties that subsequently follow. With so much on the line, merchants must be diligent in their shopping around to select a payment gateway that ticks all critical boxes. Only then can stores process transactions seamlessly while protecting customer funds and details.

Choosing The Perfect Gateway: Steps To Consider

As you have read, there is quite a lot that goes into selecting a gateway that fits with your business. However, there are other, more esoteric considerations you may not have considered, such as making sure they are accessible in the countries where you do business. So, let’s take a look at some of the primary things you should look for during your search.

Evaluate Costs And Fees Involved (Including Ongoing Fees)

Fees are often the first thing on a merchant’s checklist when choosing between the myriad of providers. However, you need to look beyond the basic fee structure and see what you receive for your money. For instance, although one provider may be more expensive than another, it could offer more features, such as helping you integrate it into your website, while the other leaves you to your own devices. Therefore, you should consider what you gain from a service rather than merely checking costs. However, you might want to keep searching if the fees seem exorbitantly high or have awful exchange rates (looking at you, PayPal).

Examine What Security Measures They Have In Place 

Security should be at the top of your list of concerns, particularly as you are handling a considerable amount of extremely sensitive data. With this at stake, you really must scrutinize what processions a processor has in place before coming to a conclusion. Processing credit and debit card transactions require stringent security standards to be met. Breaches could result in hefty penalties and loss of customer trust. It’s imperative payment partners maintain the necessary certifications to guard against fraud and theft.

Ensure It Is Straightforward To Integrate With Your Existing Tech Stack

Although setting up is covered in greater detail later in the post, it is still worth mentioning here as a factor to consider. Most will use APIs, but you should check that the system your website is built on is able to handle outside integrations. If you use a CMS such as WordPress, Magenta, or others, it is likely that you can integrate most gateways relatively easily. You might have to consider your options if you have a custom-built site or use ready-made solutions such as Squarespace or Shopify. 

Check That They Offer Services In All The Territories You Sell In

This bit will be more or less challenging, depending on where you do business. Some territories are simply excluded from many of the major payment gateways for regulatory reasons. If you are in these countries, you might be out of luck. Therefore, it’s crucial first to check if the territory you sell in is not banned from the platforms you want to use. Almost all reputable payment providers will have a list of nations they are unable to deal with in their policy pages. Take the time to read these policies so you don’t get caught out later in the process.

How To Set It Up 

So you have chosen a payment gateway you’re happy with, and now it’s time to get everything set up and ready to roll. This is where things get interesting because it is the part when you can start bringing in the cash. There are, however, several stages between now and the final outcome. 

Set Up A Merchant Account

Payment gateways will have a B2B-facing section and a B2C one. In order to gain access to all of the features you need to accept payments, you will have to sign up with the B2B section, probably referred to as a merchant account. This is usually a straightforward task, but you may be required to enter several details, including tax numbers and, perhaps, even the type of goods you sell. Some items and categories are restricted, and by selling them, you will preclude yourself from being able to create an account. However, this will all be stated in their terms and conditions, which, as already mentioned, you should read.

 

India Picture/Shutterstock.com

Verify Your Legal Compliance

When onboarding to a new service, you will probably need to verify who you are and your legal status as a business. This could include (but not limited to):

• Your business registration documents
• Tax ID numbers
• Ownership information
• Financial statements
• Bank account information (a business account is typically required)
• Licenses and/ or permits
• Proof of your online presence (i.e., you can’t create an account if you don’t have an active website)
• Compliance documentation

Every payment gateway will have slightly different requirements, but most will demand these things in order to get you set up and ready to go.

Integrate The Payment Gateway API into Your Website

Once you have created your account and been accepted, you will need to integrate the gateway into your existing site. Many will use an API (Application Programming Interface), which is a piece of code that contains information related to your account and allows your site to speak with the payment processor. You usually have two options:

1. Integrate payment options into a page on your site: This option is arguably the best as you retina users on your site. The downside is that you have to use strict security protocols on your website, which may or may not be practical for your business.
2. Send customers to the processor’s secure site: This option allows you to utilize your gateway’s security measures and process payments on their side rather than yours. Although your customers will usually be redirected back to your site afterward, there is still a separation where they must leave your site. Usually, this is not a problem, but it all depends on your preferences.

Customize Your Payment Gateway Settings 

After the gateway has been implemented, you will need to tailor the available settings to provide the desired experience for your customers. This part is all about entering details related to your merchant bank account, such as your bank account number, routing number, and other essentials needed to process transactions smoothly. Don’t forget to specify which currencies you’re okay accepting and any transaction fees you plan on charging (if any). And remember: ensuring these settings are spot-on is a must if you want to avoid glitches during payment processing later down the line.

 

Test Your Payment Gateway Thoroughly

You are probably already au fait with testing every aspect of your website to ensure the highest and most consistent conversion rates, but you should do the same with your gateway. Check that everything works as it should. Some gateways will have a sandbox where you can test each function to ensure it runs smoothly and transactions go without a hitch.

With a proper payment gateway selection, online businesses can securely scale their transaction volume and better serve their customers. By researching thoroughly and choosing one based on the factors presented throughout this post, you will generate a seamless experience that keeps the money flowing in and your users gratified.