Core Components of a Successful Payment Gateway

When building a payment gateway, it’s important to set priorities.

You must strike a balance between your business goals, the needs of your customers, your software development team’s technical skills, and security.

It’s no easy task.

It might sound like a good idea to give your payment gateway as many features as possible. But you’ll get more done if you start by focusing on the most essential features.

We will talk about some of them in this article.

1. Fraud Protection Systems

Merchants will always opt for a completely safe and secure payment gateway. It protects their money and helps them gain the trust of their customers. This is why top-level security is a no-brainer.

When choosing a payment gateway, merchants look out for features that can detect and prevent fraudulent activities. A payment gateway MUST have these mechanisms.

So, every user’s personal information needs a strong framework and security measures to keep it safe.

The software development team must utilize the best security and data protection practices, as well as programming procedures.

2. Tokenization

Tokenization involves replacing sensitive data like a debit card’s Primary Account Number (PAN) with random alphanumeric tokens. The processor is then the only one capable of handling the transaction.

This is so that even if hackers attack the payment gateway, no private information will be stolen or somehow damaged.

3. Recurring Payments

Recurring payments, or automatic payments, enable online payments to be made at regular intervals for an ongoing product or service offering.

This billing method is most commonly used by subscription businesses or companies who are collecting membership or access fees.

By having customers’ accounts charged automatically every billing cycle, merchants can streamline subscription management and billing workflows.

Recurring payments also eliminate the need to send invoices and payment reminders, which take a lot of time and energy that could be spent on other business tasks.

4. Seamless Payment Gateway Integration

Integration with numerous payment processors gives users a lot of payment options to choose from.

This feature also allows choosing the acquiring bank to develop a settlement account. Merchants love having many options instead of a few.

5. Scalability

If the payment gateway is scalable, adding new features when necessary shouldn’t be a hassle.

A payment gateway should also be able to handle spikes in payment, like on Black Friday.

It should be easy to customize and update a payment gateway. Also, teams mustn’t fail to modernize and continuously update their software.

6. Disputes and Arbitration

Merchants prefer to use payment gateways that have an interface made for handling payment disputes from banks.

7. 24/7 Availability

Customers should be able to contact a payment gateway’s website and support staff at any time, day or night.

If they have questions, they should be able to get help right away.

Implement chatbots that can answer FAQs, and when customers need to speak with customer service reps, they should also be available.

If a payment gateway isn’t available 24 hours a day, all week, it risks losing lots of customers to the competition.

Towards a successful launch

It takes a lot to build a payment gateway. Many parts must connect and work together in order to launch a successful payment gateway.

In the market, a payment gateway will be judged on how well it works, how secure it is, and how easy it is to use. Build with all of that in mind.