Ecommerce merchants are moving into digital payment solutions to help the business operate in a smooth manner. This has led to the rise in payment gateways in India. With the help of the payment gateways, merchants can easily get the funds processed from the customers. However, if you have chosen the wrong payment gateway then their problems can easily become part of your business problems. But what exactly are these problems and how can you get rid of them? Let us explore the problems that payment gateways can pose to your business.
The best payment gateway will not hamper your business growth in any way.
If you have chosen the payment gateway in India that is too expensive for you to bear then it can have a direct impact on your business. A business has to bear numerous expenses for its day-to-day operation. Including another expense to this should be done in such a manner that it should not cross the budget you are planning to dispense with. There are some payment gateways that charge a nominal fee for the transactions they process and as a merchant, you should make it a point to subscribe to their services. Or if you are ready to pay well, choose the one that brings you the most. Always compare the cost of different payment gateway services and their offers to choose the one that suits you the best.
One thing that should be cleared off about the payment gateway is that they are not at all free. Many payment gateways claim to provide their service for free but this is not the case. All the payment gateways charge a fee for the service they provide. The only issue with many payment gateways is that they do reveal their fee structure. When you are unaware of the fee, you will not be able to figure out if the payment gateway will work. Generally, there are only two types of fees: wholesale fee and markup fee. The wholesale fee is set by the bank so that rate is fixed. But the markup fee is the price at which the payment gateway providers make their profit. It is this fee which you should keep an eye on.
However, new payment gateways are showing up that have kept the pricing model of their business simple. This way retails will be able to set their own expense model accordingly.
While payment gateway in India has been there for some time, they have not been able to convince most of the retailers to switch to their services until recently. One of the reasons for this was that mobile security was not up to date to resolve all the security problems that might be associated with embezzlements and scams of different kinds. But with the innovation of biometric and 2-factor authentication, things have improved significantly. But if the merchants and retailers are still sticking to the payment gateways in India that have not resorted to these security features then it can easily become your business problem. The best solution to this is that you read about the security features available of the payment gateway you are looking for.
This has been a common problem with many payment gateways. If there is a dispute or chargeback made by the customer or even from the customer, it takes too long for the query to be resolved. And in many cases, the dispute does not get resolved either. As a retailer, it is important that you should read the review of the payment gateway in India you are looking for and also make sure that you read about the stance they take on the disputes and chargebacks.
A new payment method is brought to the eCommerce services and that is recurring payments. This payment technology is ideal for subscription-based services. For instance, Netflix provides the option where you can make the payments on a monthly basis without manually paying the company. Instead, what your payment gateway will do is that they will take the requisite amount from your bank account and process it directly in the name of the company whose subscription you have taken. This way, merchants can save a lot of their time as they have a large number of employees to make payments to. In case your payment gateway does not support this facility then it will take away a lot of your valuable time in making the payment.
Hence, it is important to have a payment gateway system in place for your business. However, you should choose the one that suits your work needs, can scale with the size and any of its limitations, if any, should not hamper your business in any way. To do this, you need to keep all the aforementioned points in mind to choose the right payment gateway in India. Keep in mind that payment gateways are made for your business and not the opposite. The payment gateway must have all the features that can mould according to your business needs and offer your business the space and support to grow.