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The Four Types of Payment Gateway to Choose for Your Online Business

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Payment Gateway

At least 63% of shopping occasions begin online, according to a study done by Think With Google in 2018. Now that more people are staying home, online shopping is expected to grow exponentially in the coming months.

If you’re a business, this is a great time to have an online shop because it allows you to continue gaining revenues even if you can’t open your physical store just yet. In fact, a lot of businesses are now switching online because it’s convenient, fast and very lucrative to buyers.

But before you can fully function online, you have to get a payment gateway, which will allow you to process payments seamlessly and safely. Here are four of the best payment gateway types to choose for your online business:

1. Self-hosted Payment Gateways

As the name suggests, this type of payment gateway means that you’re in charge of everything. No third party vendors will be involved in this type of service, so you will take care of collecting customer and payment details that will be forwarded to the payment gateway URL.

A self-hosted payment gateway is actually a great option because your customers will only need to deal with your website and not go to any other site, which could sometimes lead to cart abandonment.

The challenge, however, is that you will need to take full responsibility of the security of the transaction by hiring your own technical support team, which could be quite expensive.

2. Hosted payment gateways

In a hosted payment gateway, a third-party provider will be involved in completing payment transactions. Unlike a self-hosted service where the transaction stays within your website, your customer will be redirected to a Payment Services Provider (PSP) page upon checking out for payment.

Upon providing the payment details, the payment is then verified securely within the host’s page and after the payment is completed, the customer will be redirected back to your website.

3. Direct payment gateways

A direct payment gateway is pretty similar to a hosted service, but it is integrated directly with a local bank. Once the customer is ready for checkout, he will be redirected to the bank’s website to fulfill his payment details for approval.

After the details are confirmed and authorized, the payment is then processed and the customer is redirected back to your website.

4. Custom payment gateways

In the instance that you cannot find the right payment gateway provider that meets all your requirements, you may want to go for a custom payment gateway that allows you to design the system according to your specific needs.

Although this could require quite an investment, having your own payment gateway means that you don’t need to depend on third-party providers for payments. Plus, you can make your security features as tight as possible to protect your customers and your business.

Conclusion

Payment Gateway for Business
Payment Gateway for Business

With online shopping becoming the go-to form of making purchases by most customers these days, it’s very important to invest in a good payment gateway that will meet all your requirements while sticking with your budget.

High risk merchant accounts are necessary for all business that do no perfectly fit into the what is considered acceptable for some payment gateway processing, while most businesses tend to find that almost all forms of payment processing is easy to setup. Whichever you choose, be sure to develop a solid relationship with your payment processor.

Also Read: Top Free Tools For Marketing Agencies and Website Owners

Dave Daniel has been a Freelancer and Blogger for the past 3 years and is now the proud owner of The Tech Vamps. He has Expertise in the Areas of Technology, Science, Gaming, Gadgets, Hacking, Web Development, etc.

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Understanding the PRINCE2 Project Management Technique

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PRINCE2

PRINCE2, or PRojects IN a Controlled Environment (PRINCE2), is a common technique used in over 150 countries for project management. It’s a process-based technique that focuses, from start to finish, on coordination and control across the entire project.

This means that each project begins with a comprehensive project plan, each stage is clearly organised, and any loose ends are wrapped up after the project is completed. But in reality, what is PRINCE2 Project Management?

Keep reading for information about this common project management approach’s fundamental concepts and 7-step method.

7 Main Principles of PRINCE2 Technique

The PRINCE2 technique is based on the following seven main principles:

  1. Projects must have a business rationale, including a compelling need, a specified client, practical benefits, and a rigorous cost evaluation.
  2. Continuous learning is important. At every step in the process, lessons are sought and recorded, and used to strengthen future work.
  3. There are clearly defined roles and duties so that everyone knows exactly who is responsible for what.
  4. The job is divided into stages. Large projects are split into stages, with time to revisit and reflect on lessons learned in between to ensure that the project is still on track to achieve its objectives.
  5. Project boards create baseline requirements for critical elements such as deadlines, expense, risk, and scope, and then assign day-to-day management to a project manager.
  6. Teams use a quality register to equate deliverables to specifications.
  7. The PRINCE2 approach should be customized to each project’s particulars, with the amount of supervision and preparation tailored to the scope, number of people involved, and so on.

7 Processes Involved in PRINCE2 Methodology

These 7 stages are followed by the PRINCE2 process:

  1. Starting a company. A proposal for a new project is made in the form of a project mandate, which specifies the proposed project’s business case. A more comprehensive project brief that covers resources, deliverables, etc. will be generated if accepted.
  2. Taking on the role of manager. The project board approves project briefs and decides what is needed to complete the project.
  3. Startup. A detailed project schedule, including baselines for time, expense, quality, scope, risk, and benefits, is appointed and generated by the project manager. Work starts after the project board has given its approval.
  4. Supervising. The project manager splits the project into smaller “job sets” that the project team is responsible for completing.
  5. Managing the Product Distribution Process. The project manager ensures that the project is progressing as expected and that standards are met by deliverables. To either accept or order additional work, the project board then reviews completed work packages.
  6. Managing Stage Boundaries is an ability that can be mastered. At the end of each stage, the project board reviews and determines whether to move to the next stage, or abandon the project. Project managers hold a retrospective for their team to document lessons learned and develop procedures in preparation for the next phase of work.
  7. Closing. After the project is complete, the required reports, performance, and monitoring are done by the project manager.

Conclusion

Understanding the PRINCE2 Project Management Technique
Prince2 Training

The bulk of your focus as a project manager goes to finding the best project management approach for your team. Usually, a technique offers you a structure that includes processes, procedures, values, and beliefs to guide the direction the project wants to go forward.

PRINCE2 has proved its worth and has become a well-known project management technique. You should determine if PRINCE2 is the best choice for their projects and teams, with the above points in mind.

It is the decision of the project manager whether or not to go with any specific strategy and that decision can be best taken after reviewing the criteria of the project, the resources available, and the willingness of the project team to stick to the methodology.

Also Read: Why You Should Choose Silicone Roofing For Your Business

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Your Five Common Questions About eChecks Answered

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eChecks

As a business, you need to be flexible with the payment options that you offer to consumers. This will not only give you the competitive edge over other businesses but it will also help you speed up payment collection.

Aside from credit card payments, you can also use electronic checks or eChecks as a form of payment from customers. Some high risk merchant account holders prefer eChecks because they are safer.

Here, we answer five of your most common questions about eChecks and how they can benefit your business:

What is an electronic check?

In its essence, an eCheck or an online payment option where you can withdraw money from a customer’s checking account, move it to the ACH network and deposit it to your checking account.

To make this possible, you will need to apply for an ACH merchant account and the customer must authorize the payment by accepting your Terms and Conditions, signing a contract or through a recorded voice conversation.

What is an ACH merchant account?

The ACH network is a platform for funds to be distributed electronically among users. It is regulated and recognized by the National Automated Clearing House Association (NACHA) and the Federal Reserve (Fed), and it’s especially beneficial for businesses because it allows for faster transactions as compared to accepting traditional paper checks.

What are the steps to processing an eCheck?

Processing an electronic check is almost similar to paper check processing, only a lot faster. The first step is to request for authorization from the customer through a signed order form, recorded phone conversation or online payment form.

Once this is completed, you can then input the payment information into the software and submitted for processing of the ACH transaction.

The ACH network then withdraws the amount from the customer’s bank account and the software sends a payment receipt to the customer to confirm the payment.

Then, the network deposits the payment into your bank account, which takes within just three to five business days after the transaction was initiated.

Where are eChecks commonly used?

Electronic checks can be used in almost every type of online transaction, but they’re mostly utilized for big-ticket purchases and recurring payments such as rent, car, mortgage or even fitness gym memberships.

They are most popular in real estate where property managers usually ask tenants to fill out a recurring eCheck rent payment form that authorizes them to deduct the rent automatically from the tenant’s account every month.

What are the Benefits of using eChecks?

Electronic checks offer a lot of benefits both for customers and businesses. For one, they help reduce processing costs by as much as 60% and processing time is also a lot faster than collecting payments through paper checks.

You can also guarantee that transactions are processed safely with minimal errors and fraud because payment processors use heavy encryption and authentication before a payment could get through. Of course, you can save yourself the paper clutter by going for this paper-free option.

Though some industry, such as marijuana dispensaries, cannot use eChecks yet, this form of payment is highly sought after, even in today’s increasingly digital landscape.

So if you’re looking to expand your payment options for customers, an eCheck is definitely a good method to try.

Also Read: The Four Types of Payment Gateway to Choose for Your Online Business

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