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Choosing the Right Payment Gateway

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Offering a convenient payment platform for your customers is essential for doing business online. While online payment method such as PayPal seem to be the obvious choice, many of your customers will prefer to pay with a traditional credit card. Choosingng the right payment gateway for your shopping cart is an important success factor for your online business. Below, we describe some of the popular options.

Payment Options for Your Business

1. A traditional merchant account is still the cheapest way to go, although fees vary and are not transparent. You’ll have to contact a salesperson for a quote. An average merchant account costs approximately  1.80 – 2.40% of sales volume  plus $0.10 per transaction for a typical e-commerce website.  Don’t be fooled by quotes that show just interchange fees. These are only a part of the monthly discount rates. But if your customers want to pay using PayPal, you’ll need a more flexible payment platform.

2. PayPal offers payment options allowing customers to pay by credit card, debit card, direct debit, eCheck, or through their own PayPal account. Depending on your volume, you can expect to pay between 2.20-2.90% plus $0.30 per transaction. Fee schedules are readily available on PayPal’s website. However, PayPal’s merchant fees increase if you do business globally.

3. 2Checkout is a payment interface that also integrates with your shopping card to accept credit cards, debit cards and PayPal transactions. 2Checkout is best for online companies that do business globally. The service gives your customers the option to choose any of 15 languages and 26 currencies, so you can concentrate on marketing your business globally instead of struggling with currency exchange issues and language barriers. Pricing is 2.90% + $0.30 until you reach $50,000 in monthly sales, when the volume percentage decreases.

4. Braintree is the preferred payment option for those that were previously using Google Checkout, who recently announced its discontinuation due to its customer service difficulties. All features are included for 2.90% + $0.30. Braintree features recurring billing options and a mobile platform to accept payments using iOS, Android, and Windows devices. And now that PayPal has acquired BrainTree, almost any payment form is acceptable.

Choosing the right payment gateway into your shopping cart solution is a matter of determining which option best fits your business model. For help in choosing the best payment gateway option, contact hostingxtreme.com for advice at [email protected]

 

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