Payments have always been an integral part of any business.
Having a reliable payment gateway means delivering a smooth and convenient payment experience for the customers.
Years of research have gone into making payment gateways secure and enabling them to accept payments like credit & debit cards, UPI, net banking, etc.
Today’s customer-centric marketplace is changing the way consumers pay.
With more people turning to digital transactions, merchants focus on creating an easy checkout experience.
India’s payment gateway market is predicted to increase at a CAGR of 19.3%, going from US$ 446.9 million in 2017 to US$ 1,708.1 million.
In today’s business landscape, nearly every industry requires a payment gateway integration.
However, there is still some misinformation regarding this subject.
This blog debunks all of the common misunderstandings about payment gateways.
What Exactly Does a Payment Gateway Mean?
A payment gateway is an electronic interface to enable the transaction between a customer and the merchant.
The payment gateway links the customer’s credit card, debit card, or other payment methods to the merchant’s payment account to execute the transaction.
Easy online payment options necessitate the interaction of several systems, like banks, credit/debit cards, payment processors, websites/apps, etc.
A payment gateway guarantees that communication between the parties is rapid and hassle-free, ensuring that the payment is handled correctly.
The security of the payment gateway ensures that the payment method details are kept guarded against any prying eyes.
Misconceptions About the Payment Gateway
If you are confident that a payment gateway is not right for your organisation, it is simply because of these reasons.
Let us take a look at each of the following payment gateway myths one by one:
1. Banking Methods and Payment Gateways are Similar
Payment gateways and banks each have a different role to play.
Banks process transactions, like when people buy or sell something on an e-commerce site.
Whereas payment gateways act as a middleman between the customer, bank and the merchant or seller using the payment gateway service.
Further, payment gateways cannot provide the services of the banks.
2. Payment Gateways can Access Data
One of the biggest misconceptions about payment gateways is that they have access to customers’ sensitive data.
Merchants worry that their customers’ sensitive information and card details will be exposed.
A payment gateway is unquestionably in charge of handling sensitive data.
However, the RBI has established procedures to prevent security breaches.
A reliable payment gateway has a robust fraud and risk management system in place.
Furthermore, a payment gateway is PCI DSS certified, which means it sticks to the best security practices, securing data and preventing financial data loss.
3. All Payment Gateway has the Same Offering
The goal of all the payment gateways is to process payments quickly and securely. However, their offerings could be different.
Several payment gateways offer numerous services and solutions, such as virtual terminal accounts & card swiping, multi-currency management, a back-office system, etc.
An essential factor when checking out a payment gateway is settling time. Quick settlement time is an important feature for any business.
The merchant needs to decide which provider will offer a favourable deal that suits their needs.
Plural handles everything for you, including speeding checkouts and optimising payments.
4. Hidden Charges are there in Payment Gateways
Another major misconception regarding payment gateways is that there are hidden charges.
Usually, these companies do not charge any setup/annual maintenance fees.
However, they charge a small percentage of the transaction value, known as the Merchant Discount Rate (MDR).
This fee contributes to the payment gateway’s ability to provide a secure and hassle-free checkout experience.
5. A Payment Gateway is not for Small Businesses
A payment gateway is not just for big businesses; small businesses can also access it if they desire to offer an exceptional payment experience.
Payment gateways make transactions easier and streamline several payment-related activities.
Furthermore, it provides compiled statistics about sales and insights that can assist small enterprises in making better business decisions.
Conclusion
As technology has advanced, our shopping experiences have evolved.
Our expectations regarding how we do business and make purchases have also changed.
With the emergence of technologies in the payment industry, merchants will now have to ensure that they are keeping up with the latest trends.
There are numerous payment gateways with varying features and levels of importance.
However, when selecting a payment gateway, it is always best to research or raise questions and concerns directly with the payment gateway provider.
Plural Gateway (Edge) is a safe and simple payment gateway that gives sellers everything they need to sell online.
Plural Gateway goes above and above to create deep connections between companies and banks to provide the sellers with Pay Later.
This allows them to offer their clients flexible EMI alternatives, with an opportunity to upsell.
