In any e-commerce website integrating a payment gateway is of utmost importance. Without a safe and functional payment gateway, your site will not be able to woo the target customers. Now, there are two ways of integrating such an online payment gateway in e-commerce websites. Either a site owner can opt for readymade gateway solutions by using plug-ins and extensions, or he can get one gateway custom-developed. While the customized gateway development may not seem a suitable proposition initially, in finer analysis, it is hard to overlook the advantages offered by it.

The limitations of using readymade/off-the-shelf payment gateway solutions

• A single payment gateway may not support all payment methods.
• There could be some geographical limitations.
• Cross-border payment processing charges can be steep.
• Vendor lock-in cannot be evaded.

The benefits offered by custom payment gateway development

• Enhanced customization options- When you get a Custom Payment Gateway developed for your brand site or e-commerce site, customization itself brings many advantages on board! You can ask the vendor to include as many payment modes as needed. This makes things better for the customers- for sure.
• Better integration- When you opt for a custom Payment Gateway, it becomes easier to reach out to more customers through integration with various modes. You may, for example, get a custom API developed so that your payment gateway can be operated on any platform like desktop, tablets, hybrid devices, digital kiosks, and connected vehicles, etc.
• Integration with in-house apps – Every company has some in-house applications. By developing a customized Payment Gateway solution, lining those applications with the payment processor becomes simplified. These may include Payroll management app and Accounting applications.
• Reduced Transaction Processing charges – When you use a readymade payment processing gateway for your brand site, you end up paying higher transaction and processing charges. This varies according to the location of the buyers and regional taxation etc. In the long run, these can eat into the revenue. Building a custom payment gateway requires some investments, but the operational cost tends to be on the lower side.
• Enhanced security – While most readymade payment gateway solutions do incorporate several tried and tested online security measures, they may not exactly be fail-proof. Very few online payment processing systems can cope with Formjacking- a new type of cyber-attack. It works by siphoning customer information from the web payment forms. Big companies like Amtrak, British Airways, and Delta Airlines got affected by this menace. In a custom payment gateway, such security breaches are less likely to occur. It is possible to deploy enhanced customer authentication mechanisms.

Developing a customized payment gateway solution

It is necessary that you hire a suitable IT and software development company to develop a custom Payment Gateway solution for your brand. You can rely on entities like Insta IT that are known for their service quality and expertise. Frankly, it is not only about developing the software application and loading it with features. While developing a Payment Gateway solution, it is necessary to look after certain regulatory and compliance-related issues.

Listed below are the aspects that should be adhered to while developing a customized Payment Gateway solution:

• Compliance with PCI DSS and PSD2 standards – A veteran and reliable software solution provider will focus on PCI DSS and PSD2 Compliance while creating a payment gateway system. PCI DSS is one important joint security directive developed by American Express, Discover, Visa, and MasterCard. Its aim is to reduce security risks while processing payment transactions and safeguarding sensitive customer data too.
• PSD2 is another major security directive deployed by the EU governments. However, it is making inroads into the USA and other countries. If you want to accept credit card payments made by European consumers, your payment gateway has to be PSD2 compliant. It introduces SCA and helps minimize card frauds. It verifies multiple biometric factors like retina scan, heart rate, and fingerprint, and body movement pattern.
• Fraud and Scam Prevention – Developing a custom payment gateway can be advantageous for a business, for sure. However, adequate security provisions should be there for detecting fraudulent transaction activities. Hackers posing as customers may want to track loopholes in the system. There can be disputes on refunds, incomplete payments, and cashback, etc. So, the custom payment gateway solutions should be equipped with a powerful payment fraud detection system.

The top-notch software development firms offering payment gateway solutions often incorporate advanced AI and ML-based technologies to detect frauds. This ensures online payment frauds are detected before these take place.

• Superior customer experience – There is no denying the importance of a payment gateway system in enhancing or affecting customer experience. If the shopping cart and payment processing UI and process are not intuitive, customers can just leave midway. Studies have shown that online shoppers abandon the buying process owing to some factors. These are:

1. They leave the cart owing to poor UI.
2. A section of shoppers abandons buying as they can’t find a preferred mode of payment.
3. Technical issues also make some buyers leave the site midway.
4. A slow payment processing system can also make the buyers irate.

The top-notch payment gateway solution providers pay importance to the UI and functionality aspects well. Eliminating extra steps can be helpful in this regard.

• Security protocol notification – Online buyers are worried about security issues, and so the payment gateway should be designed in a way to inspire confidence in them! That is why many sites mention the exact payment security protocols used in their payment gateway systems. You may have seen logos and watermarks of Verified by Visa and secured by AV firms being deployed in the payment gateway UI. Some brands also use 128-256 bit encryptions in their gateway solutions for security boost. The top custom gateway developers pay attention to this aspect too.

Summing it up

Not every brand needs to get a custom payment gateway system developed. However, there are clear advantages of opting for such a system. If you want such a payment gateway solution to be developed for your brand, pick a reliable and expert developer. You may count on the expertise of Insta IT in this regard. Check out its website to know more about its services and areas of expertise.