Credit card payment gateways are without question an essential for any eCommerce merchant looking to remain relevant. Credit cards remain the leading payment preference for eCommerce purchases in South Africa, accounting for 23% of online spend in South Africa in 2019 according to WorldPay’s Global Payments Report. These figures are expected to accelerate significantly in 2020 in the face of the COVID-led eCommerce boost. With this in mind,
If you’re new to the eCommerce market or simply need a refresh, FIS defines a credit card processing gateway as a connection point within the payment journey.
“A gateway connects your shopping cart, point of sale system or virtual terminal to the next point in the payment authorization process. Gateways connect businesses to payment processors, major credit and debit card networks, and your customers’ issuing banks. It’s often an invisible connection point doing work behind the scenes.”
Payflex outlines the 5 key benefits of credit card payment gateways:
Ecommerce credit card processors generally offer built-in security features like encryption and tokenization. This helps protect your business as well as your customers by keeping sensitive credit card data safe from fraud.
Convenience & flexibility
In today’s rapidly evolving retail environment, meeting and exceeding customer expectations is key to staying relevant. Credit card payment gateways conveniently enable you to connect to multiple payment processors simultaneously. This means you’re able to meet the needs of a host of different consumers.
Credit card holders typically spend more
With various studies indicating that people spend more when paying with a credit card, it makes business sense for you to offer online credit card processing. A landmark MIT study found shoppers could spend up to 100% more when using their credit card to pay.
It legitimises your business
Gaining trust from online shoppers is a must if you want to grow your eCommerce business. One of the easiest things you can do to make your site more trustworthy is displaying logos of reputable credit card service providers.
Many credit card payment gateways enable you to repeat-bill your customers. This means their sensitive payment information doesn’t need to be stored on local servers. In addition, you don’t need to request their details each time they want to pay.
The right credit card payment gateway is instrumental in helping you operate and grow your business. So, whether you’ve been in the eCommerce game for years, or are just starting out, make sure you integrate a gateway that’s right for your business.