When launching or running a business, one of the things that owners think about all the time is how to reduce expenses. Those who run online stores or other Internet businesses have to use a payment gateway to allow their clients to make purchases using credit/debit cards and other payment systems, and many of them wonder if it is possible to find a free service and if it really makes sense. In this article, we will try to explain to you the most important matters related to this topic.
The Truth behind Free Payment Gateways
Once you start searching for a free service on the Internet, you will find plenty of options, which might make you believe that getting one will be a piece of cake. However, you will understand pretty soon that all those services claiming to be free will still want to charge you something. The thing is that calling themselves free payment gateways is no more than just a trick of companies to grab your attention because it is just impossible to offer this service without any charges.
Fees that users have to pay for this service vary based on a service provider. While it is possible to find companies setting you free from paying for signup or monthly service fees, you may have to pay high transaction discount rate (TDR).
Some providers want you to believe that you will use a free payment gateway and will just pay for your merchant account, but the true costs are really hidden. Today, payment service providers try to use various tactics to attract more potential clients, and they know that “free” always sounds good.
Just forget about avoiding paying anything to save your time because such services just do not exist. Now you might think that the right choice would be the cheapest payment gateway that you can find today, and on one hand you are right, but on the other hand, you should focus on getting something offering the best value for money rather than enjoying the lowest cost.
Cons and Pros
Now, when the truth about free payment gateways has been revealed, you should find reliable providers, determine your business’s needs, and choose an offer that seems to be the most attractive for you.
When going through the cheapest services, you should understand the possible cons and pros, including the following:
· The absence of some fees;
· Low TDR.
· Inability to operate internationally;
· A limited choice of payment options;
· The absence of chargeback protection;
· Weak security;
· The lack of certain features.
Things to Consider
It is crucial to understand the specifics of your business and ask the following questions:
· Where do you want to operate?
· What currencies do you need to accept?
· What features do you need to have?
· How to integrate this software on your online store?
· Does a service provider have good tech support?
We want to attract your attention particularly to the features that you might want to opt for. There is a range of them that you can take advantage of, which really depends on your business type and size, such as the following:
· Recurring billing;
· Fraud detection;
· Chargeback protection;
· Invoicing capabilities and others.
There are lots of options that you can consider when it comes to a payment gateway, and while it is essential to avoid overpaying, the price is not the most significant factor because you should find an offer allowing you to enjoy the best value for money, which will, eventually, contribute to your business profitability.