A delightful guide to choosing a payment gateway

A payment gateway is a service that enables businesses to accept payments from customers online. When a customer makes a purchase on a business's website or app, the payment gateway processes the payment and transfers the funds from the customer's bank account or credit card to the business's account.

Payment gateways charge fees for their services, which are typically based on a percentage of the transaction amount, plus a fixed fee per transaction. These fees can vary depending on the payment gateway and the type of transaction.

For example, a payment gateway might charge a 2.9% + AED 1.00 fee for processing a credit card transaction. This means that for a AED 100 purchase, the payment gateway would charge a fee of AED 2.90 + AED 1.00 = AED 3.90.

There may also be other fees associated with using a payment gateway, such as setup fees, monthly fees, or cancellation fees. It's important to carefully review the fee structure of any payment gateway you're considering to ensure that it's a good fit for your business.

In addition to payment gateway fees, you may also be responsible for paying other fees, such as international transaction fees, which are charged by credit card companies to process cross-border transactions through their networks. These fees are typically an additional percentage of the transaction amount, and they are separate from the payment gateway fees outlined above.

The concept of a payment gateway can be traced back to the early days of e-commerce, when businesses first started selling products and services online. At that time, the main payment options were credit cards and bank transfers. In order to process online payments, businesses needed a way to securely transmit credit card information from the customer to the bank for authorization. This is where payment gateways came in.

Payment gateways evolved over time, and today, like Mamo Business they provide a wide range of services beyond just facilitating payments. Good payment gateways now offer fraud prevention, payment links, recurring billing, invoicing, and other features like API integrations to help businesses manage their online payments.

As the use of e-commerce has grown, payment gateways have become an integral part of the online shopping experience. They enable businesses of all sizes to accept payments from customers around the world, making it easy for customers to purchase products and services online. However, not all payment gateways are built equally.

Here are some of the key factors to consider when choosing a payment gateway for your business:

1. Regulated and licensed: Is the payment gateway regulated or licensed?
2. Payment types supported: Does the payment gateway support the types of payments you want to accept, such as credit cards, debit cards, Google Pay and Apple Pay?
3. Fees: What are the transaction fees for using the payment gateway? Are there any setup, monthly, or cancellation fees?
4. Ease of use: Is the payment gateway easy to set up and integrate with your website or app? Is it user-friendly for both you and your customers?
5. Security: Is the payment gateway compliant with industry security standards, such as PCI DSS?
6. Customer support: Does the payment gateway have good customer support, in case you have any questions or issues?
7. Compatibility with your business model: Some payment gateways are better suited for certain business models, such as recurring billing or international payments.
8. Integration with your existing systems: Does the payment gateway integrate with your existing accounting, CRM, or other systems?
9. Reputation and trust: Is the payment gateway reputable and well-reviewed by other businesses?

Consider these factors to find a payment gateway that meets your needs or visit our payment gateway comparison page to learn more.