How to Choose the Right Payment Gateway for SMEs

Not sure how to choose the right payment gateway for your business? Learn what factors to consider, the types of payment gateways available, and how to make the best choice for your business.

How to Choose the Right Payment Gateway for SMEs
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Are you looking for the perfect payment gateway to accept online payments? Well, look no further! Choosing the right payment gateway is essential for your success, and we've got some tips to help you out.

First off, a payment gateway is a service that processes online transactions between customers and businesses. It enables businesses to accept credit card payments and other electronic payments securely over the internet. A good payment gateway provides a seamless checkout experience for customers while ensuring that businesses receive their payments quickly and safely.

There are many payment gateways available on the market, each with its unique features, pricing models, and user experience. This article will provide you with a comprehensive guide on how to choose the right payment gateway for your business. We will discuss the critical factors to consider, including:

  • Security and fraud prevention
  • Integration and user experience
  • Pricing and fees
  • Customer support

With so many different payment gateways to choose from, you may find it overwhelming to make a decision. However, if you are a business looking to collect payment online without the need to hire a tech team, coding skills or even setting up a website, you can opt for a payments solution provider that is easy to set up and fast to use. Let’s start with the basics and help you navigate the decision-making better.

Check for ease of integration into your existing operations

If you’re a business just starting out, it’s unlikely that you’ll have a tech team at your disposal to build a full-fledged online marketplace. However, you can use no-code platforms to get started quickly and accept online payments. An example of a fuss-free payment feature is the payment link offered by Stripe and Tekkis. It enables you to start collecting payments immediately without you having to build your own checkout page.

Ideally, choose a payment gateway that can be integrated seamlessly with your website or e-commerce platform when you scale up later. Check if the payment gateway offers an API (Application Programming Interface). You may be familiar with iPay88, a popular payment gateway in Malaysia, a fully featured payment gateway that also provides point-of-sale integration. However, it requires API integration to utilize.

Consider pricing according to your business needs and budget

When choosing the right payment gateway you will need to consider your business needs and budget. Different payment gateways offer different features and pricing models.

When it comes to pricing, here are some fees to keep in mind:

  • Flat fee per transaction
  • Percentage of the transaction amount
  • Combined flat fee and percentage of transaction
  • Monthly or annual fees

Be aware of any hidden fees, such as setup fees, cancellation fees, or early termination fees. At Tekkis, pricing is transparent and there are no hidden fees.

Aside that, evaluate your business needs. Are recurring billing or fraud detection features important? These can come at a higher cost, so pick a payment provider that caters to your requirements. Choose a payment gateway that fits your budget while still offering the features you need.

Also, think about what payment methods you want to offer your customers, such as credit cards or bank transfers. Consider your monthly sales volume, as some payment gateways charge a monthly fee in addition to a transaction fee. It's important to choose a payment gateway that fits your budget while still offering the features you need.

To give an example, Stripe offers most of these features and is a no-code platform. However, their high fees and pricing structure make it daunting for Malaysian SMEs to consider.

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Look for security and fraud prevention features

One of the most important considerations when choosing a payment gateway is security. As a business owner, you need to ensure that your customers' sensitive information is protected. This includes credit card numbers, expiration dates, and CVV codes. Therefore, it's essential to choose a payment gateway that offers robust security measures to protect your customers’ private data, in line with Malaysia’s Personal Data Protection Act (PDPA) 2010.

Hence, look for payment gateways that offer encryption and tokenization to protect sensitive customer information. Encryption is the process of converting data into an unreadable format to prevent unauthorized access. Tokenization replaces sensitive data with a non-sensitive token to prevent it from being stolen or accessed.

If you are looking to accept payments using credit cards, check if the payment gateway is compliant with Payment Card Industry Data Security Standards (PCI DSS). PCI DSS sets strong security requirements for businesses who handle credit or debit payments, as advocated by Bank Negara Malaysia. This ensures that the payment gateway adheres to high industry security standards and best practices.

Consider customer service and support

Finally, consider the level of customer service and support offered by the payment gateway. You'll want to choose a payment gateway that offers reliable customer support in case you run into any issues. Any downtime in accepting payments is not ideal for any business. Check if the payment gateway offers phone or email support, as well as any online resources such as a knowledge base or community forum.

Make online payments easy with Tekkis

If you’re looking for a payment gateway that is secure, affordable, and easy to use, Tekkis is the ideal solution for you. Set up your preferred method of payment collection in less than a minute. Watch the videos here.

Tekkis’ t-Pay solution is built with your end customers' experience in mind. All payment solutions come with a built-in checkout page, making it a seamless payment experience for quicker and more secure purchases. t-Pay supports payment methods including credit card, bank transfer via FPX, as well as e-wallets like GrabPay and Touch 'n Go.

Streamline your business’ digital payments with Tekkis today by getting in touch with us. Our friendly Customer Experience team is always ready to assist.

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