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How to Choose a Payment Gateway for Your Dropshipping Store

July 28, 2022 eCommerce TipsEntrepreneurs

A payment gateway is an essential part of dropshipping business. It’s a tool that let customers buy something from your online store. The selection of a payment gateway depends on your preference and your target market. So if you’re looking for how to choose a payment gateway for your dropshipping store, then you’ve come to the right place! Continue reading to discover points to consider when choosing a payment gateway for your dropshipping store.

Ease of Payment

A good payment gateway should bring convenience to you and the users (customers). There’s no point in integrating a gateway that makes checkout payments difficult for your customers. You’ll have reduced sales and increased abandoned carts.

Pay-out Times

Once the transaction occurs, the payment gateways take some time to send money to the merchant’s account. The timeframes vary for each. Do research the payout times before you integrate a payment gateway.

Transactions in Several Currencies

If you are targeting clients from around the globe, then this is a crucial point to consider. Make sure you integrate a platform that offers clients to pay in their local currency. Or at least provides options that are widely accepted in different countries.

Customer Service

For your good and peace of mind, it’s better to pick a payment gateway with excellent customer service. I often see some horror stories pass by of people claiming that their whole account has been set on hold while the customer service doesn’t even reply. Sometimes, they have to stop their advertisements because their cash flow has stopped. In conclusion, a good payment gateway puts your money on hold less quickly, and if it happens, should have great customer service to resolve the issue with you.

Consider Fees and Service Agreement Requirements

Payment gateway is based on the type of transactions a business conducts (online or in-person), and even business sales, revenue consistency, transaction frequency, and the markets served. It’s important to compare how the business model coincides with the payment provider, or a gateway’s fee structure. A few services may require setup fees and contracts, or they may charge transaction fees if a particular order and transaction volume aren’t met.

Ensure Effective Transactions

According to a survey conducted, more than 25% of customers will abandon a purchase if they are compelled to register for an account to complete it. If the checkout procedure uses a third-party shopping cart with an enrolment procedure, ensure that retailers can make it an optional factor that allows for a “guest” checkout.

Make Checkout Easy on All Devices

Studies show that 79% of smartphone users have made a purchase online using their mobile devices in the last 6 months and 83.72% of people own a mobile phone in 2022 and these figures are increasing steadily. As website owners evaluate their payment gateway options, you need to make sure to provide an adaptable checkout experience that is optimized for different mobile devices and network types.

Multiple Features to Choose From

Online payment gateway service providers offer several features, depending on their business needs. For instance, if retailers provide their products and services around the world, the payment gateway should provide a global solution, and accept several credit cards, debit cards, and currencies, based in different countries. Payment gateways also impact the website’s efficiency. Be sure to find out if the chosen payment gateway supports electronic invoicing, all types, text/email reminders for customers, smart chargeback management, etc.

Easy Integration Process

Online payment gateway integration isn’t a DIY process. Most payment gateways provide detailed instructions on integrating into popular dropshipping platforms. The ideal solution is selecting a payment gateway system that doesn’t botch up the website’s UX with a slow payment process. You should select a payment gateway that makes it easy and beneficial for the customers to make payments on the website where they can select a payment method of their choice.

Parting Words

Honestly, picking a payment gateway for your dropshipping store can be tasking, but at the same time simple once you are calculative. This article has done justice by giving you the information on how to choose a payment gateway for your dropshipping store. All you just have to do is find out which countries you would like to sell to and what the most popular payment methods in those countries are. Then, you pick the most popular payment method. Good luck to you with choosing a payment gateway for your dropshipping store!

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