The growth and expansion of e-commerce have been commendable in the past couple of years. Many brands are launching their business online before hitting the physical markets. And people are accepting this change because of the reliable payment gateways they get! These payment methods are amazingly instantaneous and secure for online transactions. However, we tend to get a bit skeptical about the payment gateway charges. There is a little processing fee that the gateways charge the merchants to lend their services. But the idea is not clear to many of them, given the myths surrounding the market.
Payment gateways go through a long chain of processing formalities to offer those services the customers experience in a few minutes. They connect the distance between the merchants and the consumers’ banks by taking the information and registering it on the portals. And to avail this service, the merchants have to pay nominal payment gateway charges. Let us decode these myths and find out everything about these gateways. Merchants must always have a clear idea of what they are choosing and paying. Also, analyzing the market for better opportunities is crucial for choosing the best.
Online transaction methods are feasible and fast because of the payment gateways.
Myths About The Payment Gateway Charges – Decoded
Myths in the corporate world are prominent because of the number of ears they reach! Theories spread like wildfire, and budding entrepreneurs often tend to believe what they hear. But in the e-commerce industry, where the purpose and service of payment gateways are so crucial, one should never go with the flow. While most of the merchants have a bucketful of questions before choosing a gateway method, giving an earful to these myths can get them off-track!
Let us decode all the myths we keep encountering in the e-commerce sectors. Entrepreneurs can utilize this information to understand everything it takes to choose the best payment gateway.
1. They Charge Like Mobile Banking Methods
Payment gateway charges are not similar to the service charges banks demand offering mobile banking. Banks neither position payment gateways as one of their representatives nor offer the same platform. They are just an interface for the e-services that banks offer for a better transaction experience.
2. Payment Gateways Hold Client’s Money
Payment gateways do not hold any money either from the customers or from the clients. They just secure the banking information of both parties to coordinate with the bank on their behalf. So, when a customer enters the information, the gateways forward the transaction request and forward that information to the bank. The banks process the payment to complete the transaction. The payment gateways charges are only to facilitate this purpose.
3. Debit Card and Credit Card have Similar Fees
Most of the payments gateway charges from debit and credit cards are different. This fee differs depending upon the risk factor, which is why most companies levy an extra charge on credit cards than on debit cards. The payment gateways offer a fee structure for credit and debit cards and also for the transaction partners. One might have to pay extra money for a Rupay card transaction than a MasterCard.
4. Lower Processing Fees are Better
“The cheaper, the better” theory does not apply to every business! Payment gateway charges depend upon the technology used by the company to build its servers and create secure portals. One will not offer cheap services that do not come at cheaper costs. So, one has to look at the service background and experience of the companies in the field rather than looking at the price tag!
5. All of them have the Same Rate
Most companies use this same rate myth as their deceptive selling point. But merchants have to be clever about identifying this difference. If a company offers one bone rate, it is the merchant’s responsibility to enquire about the non-qualifying rate too. The chances of the latter being higher than the former one are prominent. Merchants should know about this before accepting payment gateway charges quotes.
6. Payment Gateways Channelize Fraud
Although the chances of payment gateways being fraudulent are negligible, it is not always the case. Some merchants do not choose the gateways out of this fear which is not true for most of them. The job is to use analytical views and ideas without believing or supporting myths.
7. Same Services For Same Prices
If two companies are offering the same payment gateway charges does not mean both will offer the same quality of services. One should check the technology used, user-interface and graphics, frequency of transactions and so on. The best and most reliable service provider will justify all the grounds.
Payment gateway charges are worth every penny if one chooses the right service partner. It does not always have to be a well-known company. It is about the company’s background, experience and technology used by them. Merchants should always use their analytical screening process to identify the best one!