Saturday, 12 May 2012

Payment gateways – A hazardous thing in ecommerce solution

“In the end payment is everything”, this is the wish of ecommerce solution provider. In today’s scenario ecommerce is like an open window of business opportunity. A recent research shows that ecommerce business is rising so quickly than other business sector. In this cutting edge rivalry; an ecommerce solution providers want that their each User convert into customer. Somehow this is not possible because every user would not be purchaser they may only come at website for just gathering the product information. This is the matter of customer interest but if the user gets interested in any product and want to purchase it then it become a matter of payment gateways.

Here I called payment gateways a Hazardous because of it is a most important factor of ecommerce platform. If your payment gateways are good then you don’t have to worry about it but if it is not then it becomes hazardous for you. Payment gateways are the one who brings money to you. The whole working structure of payment gateways is like,  if the customer place an order for any products then he have to click on a “Buy now” button and then have to fill out the necessary information like his address where the product has to be shipped, contact number, email ID, credit card information, etc. After this he will be redirected to a payment gateway’s website where he finds a choice of payment options like cash on delivery (COD), Credit card, Net banking, etc. He has to select one out of it and has to proceed, once he will confirm the order, Product price has been deducted from his bank account by payment gateways and then payment gateway will deduct its transaction charges from this money and shift the rest amount to your merchant account.

This process is very difficult to understand, so let’s make it simple. You can understand it by below image which shows payment gateways working method.

Ecommerce Solution

Impacts of payment gateway on ecommerce business

We all know that without payment gateway we can never do ecommerce business so we can say that payment gateways are a heart of the ecommerce business. If the payment gateway which integrated in your website is good then you will definitely lead your ecommerce business to the next level but if it is not good then it will lead your business to the failure. Below are some aspects of payment gateway which will play a big role in ecommerce business.

  1. Payment gateway’s one time deposit – This aspect will affect on startup of ecommerce venture. At the very first time when you integrate payment gateway at that time payment gateway provider will take a deposit which will non-refundable.
  2. Transaction charges – Every payment gateway provider has different transaction charges. If your payment gateway provider’s transaction charge is high then it will directly impact on your revenue. It will also impact on your customer acquisitions.
  3. Tie-ups with banks - It is not necessary that every payment gateway provider has tie-ups with every bank hence here we can say that this is one of the loophole.
  4. Credit card transaction – Some of the payment gateway provider can’t provide credit card transaction and this is the biggest loophole of such payment gateways because as per surveys it was proven that customers prefer credit card transaction while they do online shopping.

Now the main intention of this article has come up, why it is hazardous? Understand above image and calculate the importance of the payment gateways. Payment gateways are like one mediator which maintain all the financial transactions and gives you a tremendous ecommerce solution. If it is not able to provide its core work smoothly then it becomes hazardous thing in reality. You may lose your customer and wind up your business.

Now, which payment gateway are you going to integrate in your ecommerce website?

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Ecommerce mobile Apps - Helps you a lot in your ecommerce platform


hanif said...

very very important for people involve into online business to make their business smooth and quick

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