ALL YOU NEED TO KNOW ABOUT GETTING A PAYMENT GATEWAY FOR YOUR DUBAI COMPANY
E-commerce in the UAE remains popular. During the initial stages of COVID 19 most businesses adapted their operations to include e-commerce facilities. From 2019 to date, we continue to see a steady increase in the UAE e-commerce space. During this period, we have seen a significant rise in the number of e-commerce license types in the UAE for Dubai business setup.
With the advent of e-commerce, online payments have become a routine affair. Online payments are the easiest form for making payments and enabling customers to buy products and services from all over the world without stepping out from the comfort of their home or place of work. Not only is using a payment gateway a convenient way to make purchases, but payments are made swiftly with the click of a few buttons. The biggest advantage for businesses that use a payment gateway, is it can help sellers have a far greater market reach as they are no longer restricted to their physical stores, offices, and business facilities. E-commerce platforms provide the facility of online payments by using a payment gateway.
This article examines, what is a payment gateway, how does the payment gateway process work, is it safe to make payments via payment gateway, how to select suitable payment gateway provider and what are the factors to be considered while using a payment gateway provider.
A payment gateway is a system to enable customers and businesses to transfer and receive payment online or digitally via a website or app. The technology of a payment gateway permits customers to make payments via their debit/credit card through an online platform to purchase goods and services and enables the seller of these goods and services to receive payments.
A payment gateway is a third-party link that enables a customer to transfer payment in a secure way. The different payment modes may include credit cards, debit cards, online banking, and other online wallets, from the customer’s bank account to the seller’s online platform, where payment is to be made. The payment gateway’s software provides the authority to conduct online transactions.
HOW DOES THE PAYMENT GATEWAY PROCESS WORK?
Below are the four main parties involved with an online transaction:
Customer – This is the cardholder, who is purchasing the goods or services which are being sold by the merchant. The customer is the one who will initiate an online transaction. A customer makes the payment for those goods and services using the different payment modes available such as credit card, debit card, online banking, or other online wallets.
Merchant – This is the seller of goods or services. Such goods or services are promoted on the merchant’s website to attract customer and sales.
Issuing Bank –This is the bank that has issued the credit or debit card to the customer or cardholder to initiate the online transaction.
Acquirer or Acquiring Bank – This is the financial institution that maintains the merchant’s bank account. This bank processes the merchants’ transactions by acquiring payment on behalf of the merchant from the issuing bank.
HOW TO CHOOSE A PAYMENT GATEWAY PROVIDER?
The main things a UAE business must consider when selecting a payment gateway provider include:
Payment flow to suit your business needs – A business must ensure the payment gateway they have chosen will be able to scale up as the business grows. A payment gateway provider should have the ability to process large transactions when needed by your business. It is important that a payment gateway provider can increase the transaction amount when required.
Choose the correct software – While choosing a payment gateway the business needs to guarantee not only smooth processing of transactions for the business but also for the customers. A customer must not find the payment process to be difficult, or a business might lose the customer forever, which can affect sales and the businesses’ reputation.
Security and customer support – Customers expect a payment gateway to be secure and safe. Irrespective of the fact if your company is big or small, customers will expect a website that provides the most secure payment option. Companies will need to ensure that the payment gateway provider is certified for the following information security standards – Payment Card Industry Data Security Standard (PCI-DSS) and Payment Card Industry (PCI) standard is mandated by the card brands, but Payment Card Industry Security Standards Council administers the same. In addition to security, a payment gateway’s provider should be able to provide 24*7 support to its customers.
Fees and service agreements – There are various pricing models for payment gateway providers. Fees for each payment gateway provider vary greatly depending on the services they provide. Fees can be grouped in the main categories below:
Fees set by credit card providers: VISA, Mastercard, or AMEX, etc. are fixed for all businesses and cannot be negotiated.
Transaction fees: Includes flat fees which are charged per every transaction processed via the payment gateway.
Monthly fees: In addition to transaction fees, payment gateway providers may charge a fixed monthly fee for having the payment gateway facility.
Mark up fees: Payment gateway provider will charge a mark-up fee which will range from 2.5% to 3.00% on the amount of each transaction processed.
WHO ARE THE TOP PAYMENT GATEWAY PROVIDERS IN THE UAE FOR YOUR ECOMMERCE WEBSITE?
Below we have listed the main UAE payment gateway providers in the UAE:
Network International Payment Solutions
Telr
PayFort
Checkout
2 Checkout
Cashu
CC Avenue
PayTabs
To add one of the payment gateway solutions, you will need to meet the bank and payment gateway providers’ onboarding process. Following on, to integrate a payment gateway to an e-commerce store, you will need to install a connection module or enlist help from a developer.
If you have a startup Dubai business or an already existing Dubai business, or perhaps you have a physical store and intend to move your business more towards online, or you have an existing e-commerce store, it is crucial to have a safe payment gateway in place. When choosing a payment gateway, businesses should consider if their needs are met both today and in the future, as well as meeting their customer’s needs.
