Uncover the Key Components of a Custom Payment Gateway — Blog

Payment gateways have a crucial part to play in the eCommerce transaction process- these software programs serve a channel between an online store and the bank that processes a customer’s credit card transactions. In layman language, they act like a trusted middleman that takes money from the customer and sends it to the merchant’s bank account. The process is reversed in the case when the merchant has to process refunds and want to transfer money to the customer account.

PayPal, Payza, Stripe, Square, and Amazon Pay are some of the most popular payment gateway solutions available today.

However, as you have landed on this blog, you must be someone interested to learn how to create a custom payment gateway- something that makes it easy to accept payments quickly and without a hitch. Before giving you insights about the key components of payment gateways, let us first give you some perks that are associated with building your own payment gateway-

You’ll Save on Payment Gateway Fees

Businesses that choose to go with off-the-shelf payment gateways usually need to bear with high sign-up costs plus a fee that is associated with every transaction made. In the long run, this eats up a grand fraction of their overall profit. With a custom-made payment gateway, you can significantly sidestep these expenses and save big time.

You’ll Get Several Unique Features

With payment gateways, there’s no one-size-fits-all.

Each business has its specific needs and it’s not always possible to find an off-the-shelf product that covers each of them. For instance, a third-party payment gateway that doesn’t support multi-currency transactions may limit your capacity to cater to global clients. But with a tailor-made payment gateway, you can get features that are ideal to support your business and fuel the revenue.

You Can Offer Payment Gateway As a Product

Once you have a full-fledged payment gateway, you can choose to sell or other it to other merchants, agents and ISOs to broaden your revenue streams.

Payment Gateway Portals- Key Components

Integration with Multiple Processors

Integration to multiple payment processors offers several options for your merchants. With this, they can select the acquiring bank they want to use to create a settlement account. This will also help you provide competitive transaction fee rates to your merchants, as all processors offer varying interchange fee rates based on different factors like transaction volume and merchant’s business.

Customer Experience

Delighting customer experiences lead to repeat customers. As payment gateways impact the overall shopping experience, it is wise to take into account the following points-

  • Make sure that familiar logos for payment methods you accept are displayed
  • Explaining any offsite payment methods, for instance, if “Pay with (method_name)” is to take users to some other website, a caption should appear to inform this to your customers.
  • Adding security logos (if you have) to foster a sense of trust in your customers.

PCI Compliance & Fraud Management

Security is always a matter of primary concern. Every merchant seeks a secure payment gateway that will help them win the customer’s trust. Smart merchants also incline to check if the payment gateways have fraud detection mechanisms so as to avoid issues that can surface due to fraudulent purchases.

Room to Scale

We live in a digital era where we wake up to a new technology and innovation every day. Blockchain development, digital currencies are becoming mainstream. Considering this, every merchant should insist to have a payment gateway that has enough room to add more features and match with the demands of the online payment processing world.

Chargeback & Arbitration

Merchants can largely get benefited from a payment gateway that features an interface to aid high-quality reporting and manage disputes from issuing banks.

How Much Does It Cost to Create a Custom Payment Gateway?

Just like any other application development project, there are numerous development & maintenance costs associated with creating a custom payment gateway. You will notice that the initial cost of building your own payment gateway is somewhat higher than paying the sign-up and fees to use an external payment gateway; however, the long-term benefits associated with custom development will be huge too. Your time and effort investment can help you get a customer-centric payment solution that will enable you to accept payments with much ease. This can be a mighty mission, but one that can help you reap rewards in the long haul.

We at Systango are a bunch of FinTech experts- we can create custom payment gateways optimized to your business needs. From compatibility, security, and speed to recurring payments, anti-fraud tools, advanced reporting features, and more, we do it all to help a business own the best version of custom payment gateway. Get in touch with our experts to discuss your needs.

Originally published at https://www.systango.com on February 8, 2019.

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London’s leading digital agency Systango offers full service from strategy, scoping to launch & maintenance, innovative campaigns to enterprise infrastructure.

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London’s leading digital agency Systango offers full service from strategy, scoping to launch & maintenance, innovative campaigns to enterprise infrastructure.

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