Unscrupulous marketers would have you believe that success in the world of ecommerce requires nothing more than a halfway decent product idea and a bank account to accept the tide of easy cash that is sure to begin rolling in within a matter of hours. Of course, the reality involves a great deal more knowledge and effort than these rosy scenarios imply. Perhaps one of the most important and often overlooked aspects of your ecommerce operation involves making sure your online payment processing is secure and uses a PCI-compliant payment gateway. 

Why is online payment security so important?

As a business owner, you are constantly juggling a vast array of priorities to keep your store running smoothly and your customers happy. However, hackers have just one single item on their agenda: To break into your systems so they can access your precious customer data. During the actual payment process is when this information is at its most vulnerable to attack, underscoring the crucial importance of picking the right payment gateway partner. 

Payment gateways defined.

As the name implies, a payment gateway acts as an intermediary between the customer and the merchant during the checkout process. This merchant service provides a shield of encryption between the buyer and the seller that helps to protect the security of the data being transmitted. The gateway performs three important functions during the few moments of the customer purchase.

1. The gateway encrypts all data being exchanged between seller and buyer.
2. It requests authorization of the payment after the customer’s bank or credit card company has approved it.
3. It facilitates acceptance or declination of the payment.

In addition, the gateway can do important jobs such as screening orders and calculating tax.

The main types of payment gateways.

Now that you understand the role that a high-quality payment gateway plays in the day-to-day operations of an ecommerce business, it’s time to delve into the various types. 

• Redirects. These gateways facilitate the payment process by taking the customer to an external page such as PayPal where the transaction can be processed securely. This type of gateway removes much of the security onus from the small business owner and provides the credibility of a well-known payments processing site.
• Hosted Checkout. With this type, your customer remains on your site throughout the checkout process. Behind the scenes, however, the payment is being processed by a third party such as Stripe. Again, this provides the retailer with simplicity but takes away a certain amount of control, underscoring the importance of choosing only a high-quality gateway provider.
• On-site payments. With this arrangement, payments are completely processed on your servers. This provides you, the retailer, with control over all aspects of the process. On the other hand, it then becomes your responsibility to ensure the security of the payment data that is being managed and transmitted.

Choosing the gateway that is best for your business.

When customers shop online, they want their buying experience to be as smooth and secure as possible. While all mainstream gateways can provide an intuitive shopping cart experience, not all have the staunch security features you need. To weed out the poor choices, ask vendors the following questions.

• Do you accept the payment types my customers want to use? Of course, this requires that you understand what your buyers prefer. If you do business internationally, for instance, you should consider regional and cultural factors and choose a gateway that takes them into account.
• What fees do you charge? Remember that the gateway that is priced the lowest might not be the best solution for you, particularly if its security practices are lackluster. Whatever money you saved upfront may be far eclipsed by the extra costs you have to pay in the event of a data breach. In addition, expect to pay for a merchant account and gateway setup, as well as a monthly fee and per-transaction charges.
• Are your systems compliant with the Payment Card Industry Data Security Standard (PCI DSS)? These guidelines were put in place to protect the security of customer data and payment information while also shielding your business from liability from data breaches. 
• Do you have brand recognition and credibility with customers? One of the biggest reasons for customers to abandon their shopping carts mid-purchase is a lack of confidence in the payments process. These fears can often be assuaged when you provide visible security marks like Verisign at the point of checkout. The only way to be able to provide these assurances is by working with a payment gateway provider who takes security as seriously as you do.

Other features to be on the lookout for include the following.

• The gateway should flawlessly integrate with your other payment systems. Priorities should involve omnichannel offerings, mobile access, and EMV card processing.
• It should be easy to use so that employees can be trained quickly with minimal chance of errors.
• It should provide round-the-clock technical support. This is crucial should problems arise, particularly if they happen at night, or on weekends or holidays. Making sure this type of support is in place improves consumers’ buying experiences, increases loyalty to your brand, and may even enhance your profit margins.

Deciding which gateway is right for your business requires careful research combined with a keen understanding of your customers. Think not only in terms of what you need now but how your provider can help your business grow in the future.

Finally, don’t be afraid to stack gateway options. If one offers a powerful set of features that you can’t do without but lacks one or more important elements, incorporate a second gateway into your checkout process. There is no harm in offering customers maximum flexibility for an optimal shopping experience.