Tips to finding the best payment gateway for your SMME
As a business owner or freelancer you are always looking for more and better ways to get paid. This is especially true when you sell your products and services online. You may have setup shop online, but sourcing a payment gateway that suits your billing and business style may be a bit difficult.
Online orders can be settled through several alternative payment methods. Join me as I take a look at what payment methods are available to the business owner and suggest easy to follow methods of identifying which payment method would suit your companies style best.
Location, location, location
Ask yourself if most of your customers are based in your own country or do the majority of your sales come from customers that are outside of your country. Whether you use a geographically general or specific payment gateway is up to where the majority of your clients resides. If most of your clients are from your country you can use a local payment gateway. If most of your business is done with international clients you need to get a gateway that allows this.
What currency will your clients be paying you in? This will help you decide on a payment gateway that’s right for your business. Most payment gateways only support invoicing and payments collection in specific currencies, make sure the gateway you pick supports the currencies your clients wish to make payment in.
Once-off vs recurring payment
Now you need to decide on the types of payments you will be collecting. Ask yourself if your clients will be making once off or subscription payments?
If your clients need to make once-off payments you can look at services that provide your clients with the ability to make instant, secure credit card payments. You can also look at a payment gateway like PayPal that provides immediate secure payments between individuals who have an account with them.
If the majority of your clients will need to pay on a subscription basis for the products or services you offer you will need to look at a payment gateway that allows the submission of recurring debit orders to credit cards and bank accounts e.g. a monthly payment of rental of self storage units. Remember to make sure you use a recurring payment collection service that allows collection in the currency your clients use.
Costing & level of service
The last determining factor should be the overall level of service and costs involved in such an undertaking. Use the criteria below to help you make a final decision:
- Online transactions cost money, to save as much as you can shop around for the gateway that charges you the least in transaction fees. Saving few cents on each transaction can save you thousands over time.
- Reporting: Does the gateway provide adequate information for easy account reconciliation? Do they inform you of failed payments and securely store client payment information.
- Some payment gateways provide you with an integrated merchant account while others require you to have one with a bank. Find out what the requirements are and if you qualify for an account before joining.
- Do they comply with local and international regulations governing payment gateways? Check with your local governing body to make sure the payment gateway you want to use complies.
Bill Bapsnill has been in the online billing industry for many decades. He recommends that you select payment gateways based on location, cost and the product or service you are looking to sell.
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