Do you know the differences? Payment Methods that exist allow entrepreneurs to make one of the most important decisions for their business: knowing how to invoice their sales.
At present, trade has a large variety of payment applications that complement traditional forms. By staying current with this range of possibilities, you can offer more and better payment options. And that in turn leads to more sales!
That popular payment methods are:
- bank transfers
- Debit charge
- Credit card
- electronic wallets
- QR code
Now that you know what types of collections there are, let’s see What is a payment gateway and what are its advantages for e-commerce.
What is a payment gateway?
a payment gateway It is a platform through which a monetary transaction is carried out between two people over the Internet.. It’s the easiest and fastest way to collect your online sales.
Payment gateways simplify the payment process for both the person buying and the seller. The buyer has multiple payment options (cash, card, installments, deposit or bank transfer) and the payment gateway notifies the seller when their funds are available.
Next, let’s see the differences between direct connection payment gateways and indirect connection payment gateways.
Payment gateway with direct connection
Direct connection payment gateways allow you, through installation costs, Work directly with your business number on the Internet. That means they work the same way as that post for a spot on the street. We could almost say that it is an online posnet. 😉
In addition, they offer you the opportunity to offer your customers various means of payment in cash (Pago Fácil, Rapipago, etc.) and almost all types of credit and debit cards common on the market.
- You can offer the same discounts and promotions as your local or showroom since you are working with your own business number.
- The commission cost per sale is much lower than indirect connection gateways.
- They offer a 7x24h service.
- The money is credited directly to your current account without any intermediate steps.
- If you’re buying with a credit card, your company’s name will appear in the summary, eliminating the risk of not knowing the fee.
- They charge by the number of sales, not the quantity.
- It has installation costs.
- There is a minimum amount of transactions which, if not reached, will be charged as if it had been reached.
- Each payment method you want to offer requires you to register, so it takes longer before you can start selling online.
- In the event that the buyer issues a chargeback, the amount will be automatically debited from your checking account during verification.
Payment gateway with indirect connection
They are commonly known as easy payment gateways, they do not require you to register with any specific payment method, rather you just need to open an account on their platform and the means of payment is automatically integrated.
When we say indirect connection gateways, we mean that the money is always credited to the virtual account of the gateway you are working with and you can then request a transfer to your bank account (savings or checking account).
It means that The money you raise for your online sales always goes through an intermediate stage before it gets into your hands.
Let’s explore the pros and cons of using this type of gateway:
- Opening an account is easy.
- You have no opening or installation costs.
- There is no need to contact each payment method to request registration as this is previously considered by the gateway.
- Opening requirements are minimal.
- It is not necessary to agree with every credit card to get interest-free installments as the payment gateway has its own agreements with some banks (they vary).
- They charge a much higher commission than direct connect gateways.
- It is not possible to work with business numbers, so it is not possible to offer specific promotions (discount on a specific day, payment in installments, etc.).
- It is not directly credited to the bank account, but first the funds are accumulated in the virtual account.
- In the event that the buyer makes a payment by credit card, the name of your company does not appear in the summary, but that of the payment gateway. Which may cause doubt or suspicion if not notified in advance, or directly a request for a refund of the payment.
So, what modality should I work with?
If you want to start or want to start selling online, We recommend that you start with indirect connection payment gateways. It also depends heavily on the number of transactions and the average ticket of each purchase your company makes. It’s a matter of counting!
If you have a tiendanube, you can Check which payment gateway you can use to settle your sales.
We hope that we have clarified the picture in relation to the types of collection and online charging.