Nowadays, payment infrastructure is a critical part of the success of any online business. Fast and secure transaction processing, support for the required payment methods, compliance with regulatory requirements — all this directly affects customer trust and conversion. However, the market of payment solutions today is diverse: in addition to classic providers, more and more companies are considering the possibility of launching their own payment services using a white-label payment gateway solution. In this article, we will determine which criteria are truly important when selecting a payment partner and when it is worthwhile to consider alternative approaches.
Who Is a Payment Provider?
A payment provider is a company that provides online businesses with a service for making electronic payments and payouts using international payment systems such as Visa and MasterCard, and more than a hundred alternative payment methods that are popular in a particular country. With the help of this company’s payment technologies, online businesses can sell their services globally. What should you pay attention to when choosing a provider? Let’s figure it out.
Check for Licenses
A payment provider’s licenses are an unconditional obligation of any reputable company. At the same time, its jurisdiction is important for everything that will be related to the payment process, and can both protect against unpleasant surprises in the future and, conversely, create problems.
The most authoritative license in the world is issued by the UK Financial Conduct Authority (FCA). FCA is one of the most famous regulators in the financial sector. It is put on par with the American supervisory authority FINRA. When creating financial regulators in other countries, the experience and operating principles of these two organizations are most often taken as a basis. The FCA license allows servicing various client transactions in the countries of the European Economic Area and a number of former British colonies. The license also gives the right to accept payments from countries outside Europe and pay funds to non-European countries.
The quality of the payment system and its security are also indicated by ISO 9001 compliance certificates (confirming compliance with the requirements for the quality management system of organizations and enterprises) and PCI DSS (a security standard that allows the payment provider to process data of third-party end customers).
Pay Attention to the Proposed Payment Methods
If your company is entering new markets, you need to introduce local payment methods that are familiar to consumers in a particular country. This inspires trust. The fact is that the share of online payments is constantly growing, including bank transfers, and localization is necessary for this. For example, to reach an Asian audience, connecting WeChat Pay and Alipay is not enough. This is enough to bring your business to China. However, to sell services in Vietnam, it is advisable to connect with local online banking, Nganluong e-wallet, and a few alternative payment methods.
In Europe, international payment systems Visa and MasterCard are quite popular. For greater localization of the payment scenario, it makes sense to connect payment methods specific to a particular country. For example, in Germany — Sofort and GiroPay, in the Benelux countries — iDEAL. Choose a provider that offers all the necessary local payment methods, allowing them to tailor the entire payment scenario to each individual country and region. This ensures security, reliability, and high-speed work.
Choose a Provider That Offers the Payment Gateway Integration Method That Suits You Best
You should choose a payment gateway integration method based on your capabilities. So, there are two main methods for connecting online payments to a website:
- Via API. Transactions are processed via direct server-to-server communication. In this case, end-user data is first collected and placed on the merchant’s side, and then transferred to the payment provider’s server.
- Via a payment page. In this case, the payment page is also embedded in the online merchant’s website, but it is stored on the payment provider’s server. All data is also collected and processed only on the provider’s server.
Pay Attention to the Availability of Payment Solutions That Can Increase Business Conversion
To make payments and payouts easy, relaxed, and most importantly, safe, a payment provider should have a number of specific technologies and a stable IT infrastructure. Here’s what’s included in the package of necessary features:
- Cascading. This is a payment scenario that allows you to re-run transactions if they are rejected. This is ensured by additional processing channels. This increases conversion and simplifies the interaction of both parties.
- Payment routing. Setting up rules for choosing a payment route in accordance with the parameters specified for the project. The payment gateway automatically redistributes transactions to the appropriate banks — issuers of payment cards.
- Availability of several data centers. This allows you to create a stable network that will provide 99.99% uptime.
- Availability of an anti-fraud system. A reliable provider sets up an anti-fraud system tailored to a specific business and creates a list of filters that enable the identification of fraudulent transactions at the initiation stage. This creates effective protection against fraud, increases the share of successful transactions, and reduces the risk of chargebacks, which allows you to achieve a balance between security and conversion.
- Bulk payments. Sending money to any number of people to bank cards, accounts, and other means of storing money.
Give Preference to the Provider That Offers a Payment Link
A payment link is a one-time invoice with order data sent by e-mail, messenger, or any other way. By clicking on it, the client can see the invoice for payment, where he can enter the card details and confirm the payment. The entire operation is completed in a few clicks. A payment link provides great advantages:
- Easy connection;
- Fast formation;
- Easy sending;
- Customization.
Suppose you are looking for more than just a payment provider, but a strategic partner for growth and scaling. In that case, it is worth considering providers offering White Label solutions, such as Tranzzo. Such solutions allow you to launch your own payment service under your brand without the need to develop a complex technical infrastructure. You get a fully customizable payment gateway, with which your company can act as a full-fledged payment service provider.
Conclusion
Choosing a payment provider is a strategic step for a business. It determines the convenience of the client, the stability of financial transactions, and the possibilities for scaling. It is important to remember that the market is not limited to standard solutions. If you are seeking maximum flexibility, brand control, and independence from third-party platforms, consider the white-label payment solution from Tranzzo as a comprehensive and promising alternative.
