Are you using Shopify for your business? Make sure that your payment gateway is the best gateway for you.
Read on to discover everything you need to know about payment gateways for Shopify.
Payment Gateways: What Are They?
A payment gateway is a technology or software that allows a business to accept virtual forms of payment from its customers. In our modern era, it is an essential tool for any company that is trying to scale up in any way.
How Do They Work?
A payment gateway uses software to act as a middle man between a merchant and the customer. For all transactions, whether online or in-person, the gateway processes payments and securely transmits the data from it. Ensuring that the money leaves the possession of the customer and enters the possession of the merchant.
Different Types of Gateways
There are three main types of gateways that all serve their own purpose depending on the needs specific to each merchant.
Non-Hosted Gateway
A non-hosted gateway is when the merchant is the one collecting and processing payments with its own resources. This is typically only utilized by major corporations with the funds and infrastructure to hire and develop their own software and a team of people to operate it. This could not be the best option for smaller companies that are trying to scale up.
Self-Hosted Gateway
A self-hosted gateway splits the difference between non-hosted and hosted gateways. During this process, the merchant collects all payments and has their team send the data to a third-party payment gateway to be processed off-site. This type of gateway is for businesses with a fair amount of resources and a strong financial team that has already been developed.
Hosted Gateway
Hosted gateway payments are for businesses with little infrastructure and resources to process payments on their own. During the online purchasing process, the customer will be redirected off-site to a third-party gateway where they will make the payment. They will then be redirected back to the merchant’s website to complete the rest of the check-out process. Hosted gateways can also be referred to as redirect payment gateways.
What to Look For in a Gateway Provider
If you are looking for a good Shopify payment gateway, you should not just choose the first one you come across. There are plenty out there that all offer a plethora of different features. Here are a couple of things you should be on the lookout for when searching for the right payment gateway for you.
Good Reviews
Reviews are a big deal. While they may not be the perfect way to easily tell if a specific payment gateway is the right one for you, they sure do say a lot about a business. Choosing one that has plenty of great views is a great way to start off your search for the perfect payment gateway for your business.
Well rounded
You want one that is well-rounded, meaning that they have plenty of features that you may not even know you needed. You want them to be able to offer a point of sale, great customer service, quick response times, quick transfer times, etc… Figure out everything your company needs, and choose a gateway that offers more than that.
Cryptocurrency
Cryptocurrency is a big topic right now. Many businesses have started accepting it as a form of payment. Stay with the times and choose a gateway that can allow you to readily accept crypto payments.
It’s not enough for your gateway to just accept cryptocurrency. You want it to be well thought out, with plenty of different features that benefit you.
Auto Coin Conversion
Auto coin conversion is one of these features. This conversion allows you, as the merchant, to ensure that you don’t lose money. Since cryptocurrency is a fluid thing, its price can rise and fall throughout the day. Having a gateway with auto coin conversion will ensure that you are getting paid at the value of crypto at the time of purchase. So you make as much money off your products or services as you would if the customer used any other form of payment.
Auto Forward
Auto forward is critical for efficiency and ease. You want your gateway to send your money to a designated bank account consistently and quickly after it processes the payment.
Cryptocurrency Vault
Having the option to hold your crypto coins in a vault instead of converting them to your local currency is great for any merchants who may want to do that.
The Takeaway
Utilizing e-commerce is an essential part of running a business in today’s day and age. So, you are on the right track. All you have to do is figure out which payment gateway for Shopify fits your business the best. Just be on the lookout for one that checks off all of the boxes above, choose it, and watch as your company continues to grow.
