Integrating a payment gateway

Here are the most important factors to consider when integrating a payment gateway.

1. Cost

There is a cost for using a payment gateway, which is often a percentage of each transaction. There can also be a monthly fee associated with the service. You should shop around to find a provider that fits your budget.

2. Hosted or non-hosted

There are two types of payment gateways – hosted and non-hosted.

A hosted payment gateway is one that is managed by a third party. While checking out, customers will be redirected to a different site to complete their payment, then directed back to yours to finish the checkout. The benefit of this is that the service provider handles the payment process and provides security. The service provider also provides technical support. The downside of using a hosted gateway is that customers will be dealing with another website while making a purchase on yours and they may be wary if it is not one that they are familiar with.

A non-hosted payment gateway is a solution whereby customers enter their payment information directly on your site and are not redirected during the payment process. This allows you to collect data and track your customers’ purchasing habits, which can provide valuable information for marketing. However, you will be entirely responsible for the safety and security of your customers’ payment information and consumer data. You will also need to fix any technical issues yourself.

3. Integration

The actual integration of a payment gateway with your website is relatively simple. The vendor usually provides you with a piece of HTML code that places a button on your webpage, which validates, sends and receives the payment information through the gateway.

4. Choosing a provider

There are a number of payment gateway providers to choose from. You will need to base your decision on the fees charged, the minimum and maximum transaction limits, and support offered by the provider.