How to Integrate Online Payment Methods on Websites
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The pandemic drove more entrepreneurs to sell products through online marketplaces. If you’re thinking about doing the same thing, you may save money by enabling online payment on your site.
Online payment methods for websites provide several benefits to both sellers and customers. They streamline business transactions even in the safety of your home.
This article can help you get started on adding online payment gateways to your website.
What Are Online Payment Gateways?
An online payment gateway is a service that authorizes payments in online marketplaces. Physical stores can also take advantage of this service for cashless transactions.
It serves as a portal to manage the transaction flow between customers and merchants. For security purposes, online payment gateways use encryption to protect data.
When choosing a payment gateway provider, you need to consider several factors. You must also keep in mind your business specifics and your customers.
Below are some things to do before deciding on a provider.
Take a close look at the pricing.
Check transaction limits for your desired provider.
Look at the merchant account options.
Keep in mind mobile payments.
Ensure your product type fits the payment solution you want.
Ways to Integrate Online Payment Methods
Integration With Full PCI DSS Compliance
If you plan to store or process credit card data, then you need to integrate payment methods this way. Because you’re going to deal with sensitive financial info, you’ll need to follow regulations.
You must follow the Payment Card Industry Data Security Standard (PCI DSS) standards. To do this, you need to follow five steps:
Define your compliance level.
Read the PCI Self-Assessment Questionnaire (SAQ).
Take and complete the Attestation of Compliance (AOC) exam.
Do an External Vulnerability Scan by the Approved Scanning Vendor (ASV).
Send required documents to the acquirer bank and card associations.
A hosted payment gateway functions as a third party between you and your customer.
This means that this method requires customers to leave your website to pay. After the third party processes payment, it redirects customers back to your store.
The advantage of this is that the service provider conducts all payment transactions. They also store client card data, saving you the effort to complete PCI compliance.
But, you'll have limited control over a hosted gateway. Customers may also not trust third-party payment systems.
Redirecting customers away from your site may also lower your conversion rate. This doesn’t help your branding and may impact your business in the long run.
Vendors use an application programming interface (API) to integrate this method into websites.
This is a piece of HTML code that implements a button on your checkout page. This button redirects customers to the third-party site.
This method can be useful for small and local businesses.
Non-Hosted or Integrated Method
In an integrated payment gateway, you'll deal with your customers' financial data. A third-party service provider isn't involved in the payment process.
This means you'll have to follow and adhere to PCI regulations.
It also means you'll store, secure, and do initial verification for each transaction. You can do this by installing a payment gateway solution on your website.
You can use a white label payment gateway or a prebuilt gateway as a non-hosted solution. Below are some well-known solutions you can use:
One of the advantages of using this method is that it can function as a source of revenue.
This is because with a non-hosted system, you can be a payment service provider, too. This means that you can process payment transactions for other brands.
Another advantage is that it gives you full control over your payment transactions.
You can even adjust your payment system as you wish. You can tailor it to your unique business needs.
But, it's important to know that doing this can bring a technological burden. You need the right infrastructure to store transaction data and credit card info. This means it requires an engineering team to conduct the integration.
Another disadvantage of using this method is that integration can be tricky. More so if you want custom functionality in your payment system.
This option can be useful for medium and large businesses. They're helpful especially for companies that rely on branding and user experience.
Direct Post Method
The direct post method enables customers to shop without leaving your website. It's a simple integration method that doesn't need PCI compliance.
Through this method, you don't store transaction data on your server. It gets sent to the payment gateway and processor after your customer makes a payment.
This method has the same benefits as an integrated payment gateway. You can enjoy customization and branding features, without PCI DSS compliance.
This method can be useful to businesses of all sizes.
There are several things to keep in mind when looking for a payment processor provider. Look for a solution that inspires trust.
You must also go for the one that supports several payment methods. It should also protect customers from fraudulent actions.
Keep these points in mind and you'll have a solution that inspires client confidence.
This article does not necessarily reflect the opinions of the editors or the management of EconoTimes