Challenges That Dissuade Merchants From Using Payment Gateways

Payment gateways act as a bridge between the merchant's website and the payment processor, securely transmitting payment information to ensure that transactions are processed quickly and accurately. With the rise of digital payments, India's payment gateway market is estimated to grow at a CAGR of 15% between 2018-2028, as per Mordor Intelligence, a market advisory firm.

Despite payment gateways gaining popularity, there are certain challenges faced by merchants that dissuade them from using payment gateways. Some of these challenges are as follows:

High Transaction Fees

Transaction fees are a major factor in deciding whether or not to use a particular payment gateway. For example, if you make a ₹100 transaction and the fee is 2% of that amount, then your total cost will be ₹2 plus other fees such as gateway setup fee, IT infrastructure costs, maintenance cost, etc. It is important to ensure transparency in this regard.

Security Concerns

Payment security is one of the biggest challenges faced by merchants who use payment gateways. Payment gateways are designed to be secure, but some are still vulnerable to cyber-attacks and fraud. Merchants need to be aware of the security risks associated with payment gateways and take steps to protect themselves and their customers.

Phishing scams are also a major security concern for merchants. Cybercriminals can use phishing emails to trick merchants into revealing their login credentials or other sensitive information. Another security risk is hacking attempts. Cybercriminals can attempt to hack into payment gateways to steal data or disrupt services. Hence, merchants need to work with reputable payment gateway providers that have robust security measures in place to protect customer data.

Technical Glitches

Technical glitches are a challenge for merchants who use payment gateways. Payment gateways rely on complex software and hardware systems that can occasionally experience technical issues. These issues can cause delays, errors, and even processing failures, which can negatively impact the customer experience and result in lost sales.

One common technical glitch is a server outage, which occurs when the payment gateway server is unavailable. This can happen due to hardware failure, software bugs, or network issues. Merchants may need to temporarily halt transactions until the issue is resolved, which can result in lost sales and frustrated customers.

Another common technical glitch is a connectivity issue, which occurs when the paymentgateway is unable to connect to the merchant's website or payment terminal. This can happen due to network issues, configuration errors, or compatibility issues. Merchants may need to troubleshoot the issue or work with their payment gateway provider to resolve the issue.

However, good payment gateway providers notify businesses ahead in case of a technology glitch or downtime. Accordingly, merchants should work with payment gateway providers that have experience managing multiple payment methods, and that can provide the necessary integration, configuration, and support to stave off such glitches and risks.

Multiple Payment Gateways

Offering multiple payment methods is a great way for merchants to increase sales and improve the customer experience. However, it can also be a challenge when using payment gateways. Each payment method has its unique requirements, which can make it difficult for merchants to manage multiple payment methods within a single payment gateway.

One challenge is ensuring proper payment gateway integration. Some payment methods may require additional setup or configuration, which can be time-consuming and complex. Merchants may need to work with their payment gateway provider to ensure that each payment method is properly integrated.

Final Word

Despite the challenges mentioned above, a payment gateway is a powerful and essential tool for merchants. They enable you to streamline the checkout process, reduce fraud and chargebacks, and increase customer satisfaction. Choosing the right payment gateway is not easy but adapting to changes is important. Click here to learn how you can boost your business and maximize your checkout conversion with the Worldline payment gateway.