Why should I use a payment gateway?

Why should I use a payment gateway?

The payment gateway protects your transactions so you can maintain pCI compliance. Any business dealing with cardholder data needs to comply with the pCI data security standard. Using a gateway is the best way to do this. The gateway encrypts cardholder data to keep information secure.

The payment gateway also provides your customers with an express checkout experience. Adding too many steps, like creating an account to checkout, can detract from the customer experience. This makes them less likely to shop at your store or complete a transaction again. But the payment gateway does not interrupt the settlement process. Instead, they allow you to accept payments and encrypt information seamlessly, so settlement is easy and secure.

What are the payment gateway fees?

To a large extent, payment gateway fees depend on the provider you choose. Nonetheless, payment methods generally remain the same across different payment gateway company providers.

For example, payment gateway service providers often pay an additional fee for each transaction of the solution. In many cases, this includes a percentage of the entire transaction amount and a maximum flat rate. Some suppliers can also include additional prices on top.

Transaction costs may also vary due to other factors. For example, if you're processing a Visa or Mastercard payment card, the cost will likely stay at the average rates above. However, the cost may be higher if you pay via a US shipping card.

Different levels of payment cards also play a role. Some credit cards that meet the processing rules are considered eligible and cost less. However, other cards are considered ineligible and have higher transaction costs.

Other fees, such as monthly subscription fees, may also apply to the payment gateway solution. Such special charges are usually nominal and may range widely. However, these estimates can easily change depending on the supplier you ultimately choose. While this is usually a small fee, it's important to work with other providers to make sure you don't pay more than you should.

There are other charges that may be associated with payment gateway accounts. Some services set a monthly minimum threshold based on the usual transaction rate. If you don't meet this threshold, you may have to pay additional fees. Many payment gateway services maintain this model to protect their expected revenue. If a business cannot meet its expectations with transaction volume, these payment gateway solutions often cover the loss with a minimum monthly cost.

There are other fees associated with payment gateway solutions, which may depend on the vendor and your business industry. While most of the extra costs aren't high on their own, when you add them together, they can exceed a certain level. That's why it's important to keep these costs in mind and check what other suppliers might offer in total.

As mentioned above, the total gateway account fee you pay varies by provider. This makes it very important to do your due diligence and all associated costs before you sign up for such services.

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