As customers become more dependent on online shopping for every product–from groceries to buying a pair of shoes- eCommerce businesses are making it possible need to experiment with business strategies that can support them in meeting evolving customer demands. This means incorporating such functionalities that can make shopping easier for online buyers. The payment phase is a significant role player that helps complete online shopping. Studies show that about 9% of customers abandon their shopping carts due to low payment options availability. This implies that businesses need to invest significantly in payment gateway integration and provide ample payment options to their customers, which can help reduce cart abandonment.
But before going into the details of eCommerce payment gateway integration, let us understand what they are and how they work.
Understanding the Basics of Payment Gateways
A payment gateway is a modern-age technology that helps in authorizing transactions between merchants and customers. When it comes to online shopping via a website or mobile, payment gateways are part of the “checkout process,” which pops up a portal for customers to enter their payment credentials and facilitate the transaction.
The process begins with the customer submitting the request. Once a payment request is submitted, encryption is initiated. The customer’s private information and sensitive card details are encrypted to facilitate a safe transaction. Next, a payment processor processes the transaction of funds upon getting the approval, and the process is completed.
The payment gateway integration process includes using APIs to connect the payment gateway providers within your websites. These providers accept payments via credit cards, debit cards, or wallets.
A payment gateway works in the following ways:
- Authorization: In this, the application checks whether the customer has enough funds and can make the payment.
- Capture: Here, the funds for the authorized payment are sent directly to the merchant’s account.
- Sale: This method combines authorization and capture transactions. Here, the fund is first authorized and then captured by the merchant.
- Refund: This is the process where the merchant pays the customer back in their original source of payment in case of order cancellation or other reasons.
- Void: In this case, the merchant or vendor cancels the transaction before it is debited or processed from the customer’s end.
Want to learn more about payment gateway integration? Then check out the blog on roadmap and cost of integration.
Benefits of Payment Gateway Integration for eCommerce Websites
eCommerce payment gateway integration offers multiple benefits for both merchants and customers, as explained below:
For Customers
- Faster Checkouts- If you think as a customer, then you will understand that a faster and more seamless checkout process is essential; otherwise it might lead to cart abandonment. Payment gateway integration enables a faster checkout, as it simplifies the payment process, stores customer’s payment info for easier recurring payments, and automates the entire transaction.
- Multiple Payment Options- Customers tend to choose various payment options when they make a purchase. With payment gateway integration, you can provide them with multiple choices and increase the chances of payment in one go. Multiple payment methods provide ease of usage to buyers as they get the option of choosing the mode they find comfortable and suitable. This adds more convenience as shoppers continue to purchase products and return for more.
- Secure Payments- Payment gateways adhere to PCI DSS compliance and other security mechanisms ensuring the sensitive payment information of the customers are secured and safely executed. The safety keys are also visible to customers which give them a sense of satisfaction that their info is safe and they can conduct transactions without any disruption.
For Merchants
- Cross-border Selling- By integrating multiple payment gateways including the ones that are globally acceptable, such as Paypal and Apple Pay, you get an access to new opportunities with cross-border selling and expan your business reach across international borders.
- Higher Conversions-Using multiple payment gateways will directly give a boost to your revenue graph. With reduced geographical barriers you can attract and lead more customers a step forward in your sales channel and inspire them to return back for repeat purchases.
- Reduced Cart Abandonment-When you provide multiple payment options to your customers, it will reduce the chances of cart abandonment to some extent and encourage them to make the purchase in one go. With reduced complexity in the payment process and more than one preferred option available for payment, customers instantly feel satisfied and enthusiastic to complete the transaction.
Types of Payment Gateways
- Hosted – Hosted payment gateways such as Paypal and Stripe are the ones that redirect you customers to a payment service provider’s page. This means to complete payment; customers will leave your website and return to complete the checkout process. In other words, in such types of payment gateways, the provider handles all aspects of payment processing from acquiring customer’s payment details to completing the transaction.
- Integrated- This is the type of payment gateway that doesn’t involve any third-party connectivity throughout the checkout process. Companies that choose this option via payment gateway integration services become accountable for managing the end-to-end transaction process. This means you must acquire PCI DSS compliance and need to oversee each transaction to ensure they are completed securely. This type allows you to develop a customized checkout process and function as a payment gateway provider.
Want to build a custom checkout process? Then check out our blog on custom checkout solutions and understand how you can develop tailored checkout experiences for your customers.
- Direct Post-Direct Post is a payment gateway that lets you combine the principles of hosted and integrated methods. It involves a process where the customer’s payment information is sent directly from your website to the payment processor while bypassing your servers. In this scenario, your business will not handle or store the customer’s sensitive payment information, but is encrypted and sent directly to the payment processor using a secure connection such as HTTPS or TLS.
This method helps you build a custom checkout experience while reducing the burden of PCI DSS compliance.
Step-by-Step Process to Integrate Payment Gateways
Like any other eCommerce functionality, payment gateway integration is also a critical procedure, and hence, one must follow a step-by-step process to ensure smooth completion.
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Choose a Payment Gateway
Research and select a payment gateway that meets your business needs, considering factors such as supported payment methods, currencies, transaction fees, security features, and integration complexity. Once you have selected the payment gateway provided, sign up and make an account with the chosen provider. This usually involves providing business details, bank account information for settlements, and agreeing to terms and conditions.
- Set Up Merchant Account
Log in to your merchant account provided by the payment gateway provider and configure essential settings such as accepted payment methods, currencies, transaction limits, and notifications.
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Obtain API Credentials and Choose Integration Method
Obtain access to the payment gateway’s API documentation and developer resources. This documentation outlines the APIs, SDKs (Software Development Kits), integration methods, and necessary parameters for processing transactions. Generate and obtain API keys, authentication tokens, or other credentials required to authenticate and authorize API requests from your server or application.
Once you receive the API credentials, you will need to choose the integration method. There are various available integration options (e.g., hosted payment page, direct payment gateway API integration). However, choose the method that best suits your business requirements.
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Payment gateway Integration into the Website
In this step, take assistance from an experienced eCommerce web development company that can provide payment gateway integration services. The eCommerce platform your website is built on will play an important role in this step. If it is Shopify or WooCommerce, then the team can use plugins for integration, if any other platform such as BigCommerce is used, APIs or manual code will be used for integration.
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Security and Compliance
Ensure compliance with the Payment Card Industry Data Security Standard (PCI DSS) when handling, processing, and storing cardholder data. Depending on your integration method, you may need to complete a Self-Assessment Questionnaire (SAQ) or obtain a PCI DSS Attestation of Compliance (AoC). Use HTTPS and SSL/TLS encryption to secure communication between your server or app and the payment gateway.
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Testing
The QA team of your hire eCommerce development company will conduct comprehensive testing in the payment gateway’s sandbox or test environment to ensure that transactions are processed correctly (e.g., authorize, capture, refund). They will also test various scenarios, such as successful transactions, declined transactions, and network errors, to validate your error handling and recovery processes.
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Switch to Live Mode
Once testing is successful, switch to the payment gateway’s production environment by replacing sandbox credentials with live credentials and update environment variables or configuration files as necessary.
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Monitor and Track Integration Performance
Now the integration is live, and now you need to implement robust error-handling mechanisms to handle timeouts, network issues, and other errors promptly. Additionally, implement analytics to track and analyze transaction data, conversion rates, and payment trends to optimize the checkout experience and improve business decisions.
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Customer Support Integration and Updates
Lastly, integrate mechanisms to efficiently handle customer inquiries related to payments, refunds, and transaction statuses. Stay Updated: Stay informed about updates, security patches, and new features released by the payment gateway provider. Update your integration as needed to maintain compatibility and security.
Want payment gateway integration for your eCommerce app? Learn the best practices for smooth integration in our eCommerce payment integration blog.
Top Payment Gateway Providers
- Paypal- With a legitimate claim to being the original digital payments platform, PayPal is recognisable around the world and continues to champion possibilities for everyone by making money management fast, easy and more enjoyable. Being one of the oldest payment gateway providers, the firm has delivered a product ideally suited for small businesses, online merchants, individuals and others who are underserved by traditional payment mechanisms.
- Stripe- Headquartered in both San Francisco and Dublin, Stripe is billed as a financial infrastructure platform for the Internet. Millions of companies around the world, from large enterprises to ambitious startups, are using Stripe to accept payments, send payouts, automate financial processes, accelerate new business opportunities, and, ultimately, grow their revenue.
- Braintree- Braintree provides the global commerce tools required for people to build their businesses, accept payments, minimize security concerns, and expand globally.
The firm has become a leader in mobile payments thanks to its belief that payment technology is key to driving innovation and boosting revenue.
- Adyen- Adyen was established in 2006 and is a popular payment gateway provider in the UK. By providing end-to-end payment capabilities, data-driven insights, and financial products in a single global solution, this provider offers the tools necessary to create seamless payments, scalability, and consumer journeys.
- Square- Inventing the first mobile card reader, this payment gateway provider allows business owners to work more efficiently, pay employees, manage inventory, communicate with customers, book appointments, order online and so much more.
Tips to Choose the Right Payment Gateway for Your Website
While there are various payment gateway providers available, making the right choice is always essential to ensure it aligns with your payment gateway integration process. Choosing the right payment gateway determines the currencies you can accept, the transaction cost, the speed at which funds arrive in your merchant account, and the payment options you’ll provide. Here are some quick tips to help you make the best decision:
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Scope of Your Business
The choice of payment gateway provider will significantly depend upon the scope of your business, its demands, location, and the currency support you wish to offer via your eCommerce website. Hence, choose a provider that supports your location, your unique requirements, and offers a feasible payment settlement period.
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Popularity
The popularity of a payment gateway is directly connected to customers’ sentiments. Take PayPal, for example. It is a popular payment gateway with a 45% market share, and most people prefer using it. If you integrate PayPal within your website’s checkout process, most customers will feel satisfied and encouraged to shop from your website.
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Pricing
Payment processing is a complex task as it involves the circulation of critical customer information to complete a transaction. Payment gateways usually charge a transaction fee for using third-party technologies to complete and authorize the transaction, just like any other service. Each payment gateway has its own guidelines and cost parameters. Hence, choose the one for eCommerce payment gateway integration that aligns well with your budget.
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Credit Card Support
Many online shoppers usually prefer using credit cards to make a payment. Hence, you need to verify that the provider you choose offers compatibility with almost every credit card for smooth payment processing for your customers.
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Mobile Payment Support
Many shoppers these days prefer shopping on the go via their mobile devices, hence providing mobile payment support is essential. Make sure to choose providers for payment gateway integration that offer mobile wallets. The most popular ones are Apple Pay and Google Pay that support mobile-based payments for both online and offline transactions.
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Security and Performance
Security remains a primitive concern of sellers and buyers as they sell or shop online. It also becomes your responsibility to facilitate secure transactions for your customers. Hence, choose a payment gateway provider that adheres to PCI DSS compliance and other industry standards.
Why Successive Digital for eCommerce Payment Gateway Integration?
Successive Digital has years of expertise to build custom eCommerce stores as well as provide support for multiple eCommerce operations including payment gateway integration. Besides, working with a reliable eCommerce web development company such as Successive Digital will give you a competitive edge as we follow a step-by-step process for a smooth payment gateway integration.
So, Contact our experts today to get seamless payment integration within your eCommerce website.
Final Takeaway
Payment gateways play a critical role in the completion of a shopping process. The larger the number of payment gateways available for shopping, the higher the chances of customers completing the purchase. Hence, businesses must invest strategically in payment gateway integration services to enable increased profits for themselves.
