What you need to know about Payment Gateway from e-commerce?
I have worked on ecommerce projects for clients from various countries. In this post I am going to explain few of the issues faced by the clients from various countries. I was hired by clients to help their vendors deliver the product as per the specification. Most of the projects faced issue related to only one area in the website i.e payment gateway. I have already written a post on how to choose your payment gateway.
The client had outsourced the development to a company and they were working on all the features and in their project plan payment gateway integration was the last step. I asked the client not to signoff the statement of work until the service provider delivers a POC (proof-of-concept) using the payment gateway that the client had already bought after my evaluation. The service provider was not able to integrate the payment gateway in a POC hence the deal was called off. I helped client hire another company which did POC successfully. It is better for companies to do a complete POC on Payment Gateway before starting the development of the project. In the project plan it is important to have the payment gateway integration task in sprint 1 or 2 not at the end. I have seen this one feature has delayed the go live for the project by several weeks.
Unlike USA other countries don’t have a fast and easy approval of payment gateway account. In developing countries you need to submit lot of documents including bank account details and letter from bank for approval. This process takes even few months. In one of the projects the client postponed it till the development was complete. The team waited for 2 months to get this integration done. If this is the first time you are launching an ecommerce website then proceed with payment gateway application process in the very beginning.
It is also advisable to have more than one payment gateway accounts approved with different companies. This plan B helped one of my client to launch their website on time, even though the primary gateway provider had some technical difficulty in accepting some types of payments the alternate payment gateway helped us launch the website on time. Link different bank account for each payment gateway account if needed.
In developing world the payment gateways may be approved for only the domain it was requested. If the same account was used on multiple domains then the payments may be declined by the payment processor. One of my clients had this problem when they wanted to add one more domain to their website the client has to contact the payment gateway to get this approved.
Payment gateway companies don’t pay you on a daily basis for the transactions that were submitted by your website. One of the clients promised the supplier to pay every week but the problem was that the payment processor company paid only once a week and sometimes that was also delayed because the payment processing company would send a cheque instead of directly remitting it into the company’s bank account. This delay caused the company to have financial problem with suppliers and have to plan things alternatively.
The client chose a payment gateway that supported multiple currencies. The problem happened when the amount remitted to the client’s account was off by a considerable percentage. The currency value used for conversion was below what banks provided and there was a fee associated with remittance and currency conversion this affected the profit margin on various products and the client increased the product price to cover that loss but they started to lose market share.
The client opted for a SAAS ecommerce solution and it was very appealing in the beginning since it was very cheap to host a store. The problem started when the products listed on the site grew exponentially. The client was not able to fulfill orders on time and lot of items were on backorder. The reason the client was not able to integrate their backend supply chain software with the SAAS solution they bought for their store front.
If you need help or suggestions for your products you can get it touch with me here or you can post your question to my social accounts below.
Founder & CEO
H.Thirukkumaran has over 20 years of experience in the IT industry. He worked in US for over 13 years for leading companies in various sectors like retail and ecommerce, investment banking, stock market, automobile and real estate He is the author of the book Learning Google BigQuery which explains how to build big data systems using Google BigQuery. He holds a masters in blockchain from Zigurat Innovation and Technology Business School from Barcelona Spain. He is also the India chapter lead for the Global Blockchain Initiative a non-profit from Germany that provides free education on blockchain. He currently lives in Chennai India.