A payment gateway serves the role of a link between the buyer and seller of an online store. It allows them to exchange goods in exchange for cash on an online store that is accessible digitally.
Thus, paying attention to the efficiency of the gateway for payment works used for your Microsoft E-commerce store is essential since it can lead to the satisfaction of customers.
Utilizing Microsoft development tools offered by a Microsoft web development agency along with payment integration solutions that work can boost sales at your online store.
Whats A Payment Gateway?
Put the payment gateway lets your online store connect to an organization that handles payments. The chosen Microsoft web development business inserts various checks into the process before verifying or approving transactions.
A payment gateway created through the Microsoft web development company to support your online store, which facilitates payment transactions.
Incorporating particular APIs enables the flow of payment-related information to the payment process (Application programming interfaces).
Need A Payment Gateway For Your E-Commerce Website
Incorporating a payment processor into your online business will make your store more successful. Payment gateways enable your customers to purchase the items they enjoy quickly.
In contrast, it can aid in your needs for electronic payment processing as an owner of an online store.
The importance of having an efficient payment processor within your Microsoft online store is undeniable since it impacts the purchasing purchases for your buyers.
A reliable payment system will encourage customers to buy more products without hassle.
Suppose a payment processor doesnt function properly. In that case, it is likely that your customers will be annoyed and will abandon your website extremely high.
There are better indicators than this for your Microsoft online store. It is important to consider the following five aspects before selecting a payment processor for your Microsoft online store.
- An ideal payment processor should offer various payment options to enable customers to purchase.
Ensure your payment method allows payment choices like Debit, Credit, PayPal, UPIs, and many more.
- If your company targets the world, checking the currencies the payment gateway accepts is important.
- Check that the fee for transition associated with the payment method that you choose is reasonable as well as within the budget of your choice.
- Before you select a payment processor, it is essential to go through all the conditions and terms carefully because some payment gateways do not allow the sale of physical products.
- You can operate the payment gateway from the clients end and see whether it requires you to finish additional procedures like signing up. If so, you should only select such methods if they take your customers time.
The Types Of Gateways For Payments
Various types of payment gateways are available for different ecommerce businesses. Every eCommerce website development company can assist you in incorporating these gateways on your website for e-commerce when youre clear on which one you would like to select.
Before you dive deeper into learning more about the options for payment gateways for your Microsoft online store, lets look at the different types of payment gateways:
Hosted Payment Gateways
A very popular example of a payment gateway hosted is PayPal. The purpose of the term "hosted payment gateway" is that it directs your client to an alternative checkout site for processing the payment.
This page redirects the user to the payment service provider or PSP page. When a customer arrives at this site, they can enter the details for payment and complete an online payment. After this process, the client returns to the original site to complete the final checkout steps.
Advantages:
- This kind of payment gateway is thought to be more secure because the transactions made by them are PCI certified (prevent fraud on the part of customers).
- They are easily customizable.
- Hosted payment gateways are simple to set up and also user-friendly concerning the use.
Disadvantages:
- Merchants need to have complete control over the process because the user interface is directed to an external website within the process.
Api-Hosted Payment Gateways
In contrast to hosted gateways, API host payment gateways allow customers to enter their payment details and card details directly on the merchants website instead of redirecting them to another page.
So, the customer stays on the merchants website when purchasing the product and payments are processed using an API.
Advantages:
- The customer stays on the site, improving the total customer experience.
- They can be integrated with various gadgets like smartphones, computers and more.
Disadvantages:
- To use this payment processor on a website for online shopping, merchants must acquire the SSL certification and take responsibility for PCI conformance in the hands of their business objectives.
Read More: Things to consider before choosing an E-commerce Platform
Self-Hosted Payment Gateways
Self-hosted payment gateways employ an approach wherein the details for the purchase are collected from the merchants site, and these details are sent to the payment gateways URL to finish the purchase.
The data collected and transmitted to the URL could require some specific format or the cryptographic key to read the data on the other side.
Advantages:
- Since the entire transaction is conducted on one platform, the customer experience is not affected.
- The merchant is in charge of the payment process of the buyer.
Disadvantages:
- Because these gateways are self-hosted, they need an independent technical support department for them in the event of malfunctioning systems.
The Flow Of The Payment Gateways Process
While there may be some slight modifications in the process from time to time, like when chargebacks or refunds involve (and its a good idea to educate yourself about those as well), The majority of transactions occur as follows:
When You Purchase, The Merchants Site Sends Encrypted Payment Information To The Payment Gateway
- The user browses your site via their computer or mobile, adds their choice to their shopping cart, and goes to checkout.
- When they check out the procedure, customers may be required to confirm their purchase and provide their shipping and billing information.
- They can submit their order by pressing the order button or "pay now".
- The web browser used by the customers browser secures the payment details and then sends them to your website server. The process is executed through Secure Socket Layer (SSL) encryption which requires you to be the seller to have an entire SSL certificate.
- The app for gateways on your site then transmits the transaction information using SSL encryption in the payment gateway.
- The payment gateway will then assume control at this moment.
The Payment Gateway Forwards A Request To The Bank That The Customer Is Using To Authorize
- The payment gateway transmits encrypted transaction details through the processing company used by the bank you use (the "acquiring bank").
- The processor forwards this information to the association for the card, like MasterCard or Visa.
- The card association forwards this transaction through the financial institution that issued the card to the cardholder.
- The bank of the customer receives the request. It confirms that the money available to the customer is sufficient to cover the requested amount.
- The customers bank responds to the processor by sending an identification code indicating whether the payment request has been approved or denied (and, if its declined, why).
- The payment gateway receives the response from the payment processor after that.
- The payment gateway sends this data to your site, interprets the response, and then passes it on your behalf as the seller and to the person making a purchase.
- The most amazing thing is that this procedure takes between 2 and 3 seconds.
If Payment Was Approved And The Customers Bank Has Paid The Merchant
- Suppose the payment of the customer is approved. In that case, you can send your authorization via the payment processor to your ("the one who is acquiring") bank in a processed batch.
- The bank will deposit all cleared funds in your merchant account or into the merchant account of the gateway you use to pay.
- The money is transferred from the merchant account to the business bank account.
Important Aspects To Keep In Mind When Selecting A Payment Gateway
As weve already mentioned, youll have several options to consider when setting up an online payment system. Lets take a look at two crucial elements of the process.
The Merchant Account
The merchants account can be described as a transit account that holds for a short period of payments from sales of credit cards.
Its transferred from here to the business bank account. The merchant account was created to safeguard both the consumer and the company that handles credit cards. In other words, if a business fails not to fulfill the order, the client can be reimbursed from the funds within the account of the business.
Certain payment gateways require businesses to set up an account for their merchants. At the same time, some will provide the possibility to use the services merchant account aggregated.
Two things to think about:
Cost: It requires some time and effort to establish the merchant account you want to use, and youll have to pay the setup cost and monthly charges.
Although using the merchant account of the payment gateway will save you time and money, you will probably have to pay more for individual transaction fees. It makes sense to have a joint account when you are just a small startup with fewer transactions. As your business expands, consider setting up your account, but make the calculations to figure out the best solution for your company.
Cash Flow: There is a time lag between when the money is deposited into the merchant account and when you get it into your company account.
The time frame will differ based on the payment gateway and the merchant account you choose. Be sure to know what you can expect so that you are prepared for it.
Payment Security And Payment Details
Theres always a chance associated with online transactions for the customer or merchants. It is important to take the necessary steps to ensure that customers feel secure while also fulfilling your obligation to secure your customers information.
There are three main issues to keep an eye on and know if the payment gateway or you is accountable:
- Secure Socket Layer (SSL) which is what the merchant is accountable for.
- The Payment Card Industry Data Security Standard (PCI DSS) is a standard that the company that stores payment card details of customers is accountable for.
- The 3D Secure technique is used across most South African payment gateways and banks. You are not obligated to use it. But do research further if youre working with foreign entities.
Customers Receipt And Payment Information
An SSL ensures that it is encrypted and safe whenever you transmit payment information to the payment processor.
Ensure your web development company can provide an SSL certificate to your complete website, not just for your shopping cart. Also, make sure to place the SSL emblem or badge on your website and particularly at the time of checkout. Check out the Take a lot illustration below.
Remind the customer that their information is secure.
A page on the internet that is secured with SSL will show the following:
- Instead of "https://," place "https://" before the websites URL in the browsers address bar.
- The padlock icon will be visible within the address bar on your browser before the address.
Storing Customer Payment Details
Describing how the sensitive customer data must be treated. When designing your checkout procedure, there are several locations where customers can fill in their bank information.
It could be:
- Directly on your website will provide your customers with a seamless digital experience. However, you are responsible for the protection of their information and must ensure compliance with PCI DSS.
- For a website that an outside party owns, your payment gateway typically must comply with PCI DSS (which most of them comply with). However, the drawback of this could be that the payment page could appear different from your website, potentially turning potential customers away.
Considerations To Make When Choosing An Online Payment Processor
Before making any choice to pick the eCommerce Payment Gateway dependent on the functional and business requirements of the eCommerce company, Here are the elements that should be taken into consideration:
Select A Suitable Payment Flow
As the business expands and expands, as the business grows, the eCommerce payment gateway needs to grow easily. Retailers must choose the most suitable payment option for their business before incorporating an online payment gateway into their website.
- A Website With Integrated Payment Forms Transmits Data To A Secure Gateway: This option allows the payment information to be transmitted via a particular form. The form is filled with all the necessary information. It is passed directly to the provider of your gateway via API calls. This could require additional programming, increasing the cost of the development process.
- Iframe And Redirect To Pay For Transactions: Customers are redirected to a secure, hosted payment page or must enter their details in the embedded iFrame on the site. Microsoft Web Developers can make use of this option because it is quicker to integrate.
- Having The Escrow Method: This payment gateway is a good choice for certain companies. Secure escrow systems built in the eCommerce platform will block funds before the admin grants the authority needed. Suppose the platform acts as an intermediary for trading or acts in the capacity of an online marketplace. In that case, the traded funds of both parties will be safely stored and arbitraged when the transaction is completed.
Read More: Why does everyone need to undertake E-commerce to promote their Business?
Select The Right Product
A payment gateway service is required on each website for selling services and products online. It allows customers to purchase products or services and business owners to receive payments easily.
To select the appropriate solution, merchants should consider the degree of adaptability of their payment method while keeping safety at the forefront.
Determining the best way to integrate an online payment processor on the site is important - this does not mean that retailers must create it on their own.
Still, they need to employ a specialist to manage this. Please choose the most suitable online payment method for your company and its customers.
Help Customers Feel Safe And Secure
The big businesses have taken their shopping experience on the internet above and above - enhancing customer expectations of every eCommerce website.
Even for small-sized businesses, consumers expect quality websites with one of the safest payment methods. If they sell online, they compete directly or indirectly with retailers like Amazon, Walmart, and others.
Some payment gateways allow site owners to modify the entire personalized experience of payment to match their logo, typeface and color scheme.
A few customers need to learn they may be temporarily directed to a different website to make their transactions secure. Check that your payment gateway provider is accredited to comply with security standards such as PCI-DSS.
Take Into Consideration Fees And Service Agreement Requirements.
The cost of payment gateways usually depends on the kind of transactions an organization performs (online and in person), the volume of business sales, revenue consistency, the frequency of transactions, and the marketplaces served.
It is advisable to evaluate how the e-commerce model integrates and is compatible with the payment processor or payment gateways fee structure.
Some services may need agreements and setup costs or charge transaction costs if certain transactions and orders arent satisfied.
Transactional Efficacy
A survey has revealed that more than 25 % of shoppers will leave the purchase if they are forced to sign up for an account to make the purchase.
If the checkout process is an external shopping cart that includes an enrollment process included in the cart, make sure retailers can make it an optional feature which allows for the possibility of a "guest" checkout.
In addition, the payment processor will allow retailers to eliminate the fields that are not needed to make it easier for customers to complete the checkout.
The big eCommerce companies expect online retailers to increase conversions by as much as 50% by eliminating redundant fields, for example, requiring the customer to fill in details for shipping and billing regardless of whether they are not identical.
Make Checkout Simple On All Devices
Studies show that 79% of mobile owners have purchased online with their mobile devices within the last six months.
62.24 per cent of the population will own phones with mobiles, and these numbers will rise yearly. When website owners review their payment options, they should ensure that their checkout experiences are flexible and optimized for various mobile devices and networks.
Multifaceted Functionalities
The online payment gateways provide various features based on their specific business needs. For instance, suppose that they sell their services and products globally.
In this case, the payment gateway must offer a worldwide solution and support a wide range of debit and credit cards and currencies from various countries.
Payment gateways also affect the efficiency of websites. Ensure you know which payment method allows electronic invoices and all payment types such as text/email reminders to customers, Smart chargeback management, and more.
Easy Integration Process
The integration of online payment gateways is a challenging task. Many payment gateways provide explicit instructions for integration with popular eCommerce platforms like WooCommerce, Shopify and Magento.
The best option is to choose a payment gateway system that does not mess up the sites UX by slowing the payment process. Choose a payment method that makes it simple and efficient for customers to make payments through the site, and they can choose the payment method they prefer.
Merchant Account
It is vital to have a merchant account to get funds via the internet-based payment processor. What is a "merchant account"? It is used by customers who pay online using payment gateways.
The money is then briefly transferred onto a different account for retailers. This is distinct from the bank account that is currently in use. The money stored in a merchant bank account has to wait until the customers processing bank clears it.
Once the bank has approved, the cash will be transferred into the account of the banking institution.
Although it may seem like an additional task, merchant accounts offer an additional layer of security and management of funds for both buyers and sellers.
In addition, certain payment gateways dont need a merchant account and instead pay money straight to the buyers bank account. The payment gateways may be charged a higher processing cost in these instances.
Recurring Billing
Recurring billing allows retailers to create an automated billing cycle for their customers, making it a must for businesses with month-long payment programs.
Subscription-based services, like Netflix, operate using a recurring model for payment. Additionally, nonprofits have discovered benefits in recurring billing since this allows them to receive the funds of regular contributors.
Mobile Payments
Mobile payments will likely replace purchases made with credit cards shortly, even in point-of-sale environments.
With the aid of mobile payment companies, payment gateways enable customers to transfer funds using their phones, either using top-quality apps or an optimized mobile website.
Payment gateways make mobile payments possible; however, they are specifically designed for mobile devices, such as tablets and phones.
The advent of digital mobile wallets, such as Apple Pay, Google Pay, Samsung Pay, etc., has changed the way consumers pay on mobile devices. Payment processors have been adding support for all the major digital wallets.
24/7 Customer Support
Many payment gateways restrict their support to email addresses or tickets. In this scenario, users must follow manual steps to solve any issue.
If the website owners feel more comfortable chatting with a human rather than sending emails, ensure that the site owner can provide live technical assistance, at the absolute least, within normal operating hours so that they can handle any technical concerns.
Conclusion
Suppose youre looking to set up your Microsoft online store for your company to the best of your ability. In that case, You should consider the most suitable payment gateway to your requirements.
Utilizing Microsoft development services provided by an experienced Microsoft web design company, it is easy to connect a payment gateway provider that will greatly benefit your business.
Check that the large range of choices available online doesnt overwhelm you when choosing the payment processor for your Microsoft E-commerce company.
Select the one you like and have integrated with a reliable Microsoft web design and development provider at reasonable costs.