The global online retail sales are expected to reach $2 trillion by 2020 – a figure that will rise at a CAGR of 13% over the next five years. As such, low-risk businesses around the globe are investing heavily in their e-commerce merchants strategies to stay competitive in today’s marketplace. To cater to these demands, many companies are looking beyond conventional methods of transaction processing such as credit cards or bank transfers.

To meet these challenges, some companies are now turning to low risk payment gateways (also known as LRPGs) because they provide greater flexibility and efficiency. This article gives you a quick primer on what a low risk gateway is and its benefits for low-risk companies eCommerce businesses or ecommerce merchants.

What Is A Low Risk Gateway Payment System?

A low risk gateway payment system allows low-risk merchant accounts to accept credit card payments from customers through a variety of different means including cashless transactions, digital wallet, debit card, MasterCard® SecureCode®, Discover Card®, PayPal for ecommerce merchants. 

Low risk payment gateways are commonly used by online retailers owing to its flexibility and adaptability with fair rates. These systems are designed to help small ecommerce merchants businesses get started with an ecommerce website without having to pay high transaction fees. They also enable retailers to accept payments from different kinds of customers.

These gateways make it easy for merchants to setup, use and manage one time or recurring transactions. The system also provides protection against fraud, chargebacks, chargeback disputes, chargeback reversal, unauthorized transactions and many other payment issues. In fact, according to Merchant Warehouse, about 85% of all merchants utilize low risk payment gateways.

Features Of A Good Low Risk Gateway Solution:

1. Accepting Multiple currencies

A good low risk gateway accepts payments in various international currencies. Some gateways offer this functionality in an array of languages, while others only support one currency. For instance, Stripe allows vendors to accept payments in more than 30 different currencies such as USD, GBP, EUR, CAD, AUD, JPY for ecommerce merchants for mobile processing. Other notable examples include PayPal Business Payments where users can choose between several popular currencies including USD, GBP, CAD, JPY, SEK and DKK among others.

2. Customer Support

Some gateways allow you to integrate your customer service agents into their software so that they can be available 24/7 to answer questions from your clients. Some Payment processors even give you the option to create a chatbot which will ask your clients the right question at the right time. This way, you will save valuable time and reduce the number of phone calls.

3. Online Payment Methods

In addition to allowing multiple currencies, most LRPG solutions also allow vendors to accept payments through different payment processors for online credit card processing. Customers can easily choose from different ways for credit card payment processing to their account like using Visa or MasterCard debit cards; adding funds directly to their bank accounts via wire transfer, prepaid card, etc.; Mobile payments; Paypal payments; and eCheck payments.

4. Easy Setup And Management

Most LRPGs have a simple setup process meaning there isn’t much technical expertise to master. It takes less than 5 minutes to set up your low-risk businesses. Once done, the process becomes quite straightforward as you just need to enter your credentials and configure settings.

5. Adaptation

Because of their simplicity and flexibility, LRPGs are very well adapted to mobile platforms. They have excellent app stores and SDKs which let you run your own apps that can handle in-app purchases. Also, most of them work seamlessly with online marketplaces such as Amazon, eBay, Etsy, Zazzle, Etsy and Shopify.

6. Transaction Limits

Low risk payment gateways come with preconfigured limits on how much money is allowed per day, week and month. Generally, these amounts range between $10,000-$100,000. However, some gateways allow you to increase the limit to accommodate large volume sales with international payments.

7. Integration With Other Apps

LRPGs are usually integrated with other apps like Facebook, WordPress, Instagram, etc. You can generate QR codes and embed those on various websites. This makes it possible for customers to pay by scanning the code without navigating away from your site.

8. Fraud Protection & Chargebacks

LRPGs are equipped with extensive fraud detection and fraud protection or risk of fraud and risk of chargebacks features that make sure transactions go smoothly for various payments like international payments. For starters, they automatically detect fraudulent transactions and refuse to approve those. Furthermore, if fraud does occur, they chargeback and credit score of parties involved in the scam until the issue has been resolved. In case you don’t want to incur any unnecessary losses, it would be best to opt for a solution with thorough anti-fraud measures.

9. Security Features

You may not always require complex security features but it is still good to have them because sometimes hackers get access to your server and change data to avoid detection. When this happens, your customers might end up paying for items they never purchased!

10. Reporting Tools

Reporting tools help you track every transaction on your website, including what products were bought and when. This helps you identify repeat buyers or consumers who purchase more frequently.

11. Social Media Support

If you plan on taking advantage of social media marketing, then it is important that your online payment platform supports it too. Most popular LRPGs offer basic support like email notifications while advanced options include live chat customer support, FAQ databases and ticketing systems

12. APIs

Using APIs (application programming interfaces) to integrate with third party applications means lower development costs and faster time-to-market. The number of APIs available in the market keeps rising each year.

13. Data Storage

The amount of information stored about each transaction can vary based on your needs. Whether you use a single database or multiple ones depends on your preference and business model.

14. Mobile App Accessibility

Mobile devices continue to gain popularity among users and shopping carts. By making sure all of your mobile payments solutions are compatible with different operating systems, you will maximize the chances of having an accessible user experience.

15. Compatibility with Third Party Platforms and Devices

Most gateways currently provide integration with services like PayPal and Stripe, but there are also many ways for customizing payment processes. Some gateways support multiple currencies and languages so your users can shop with ease worldwide.

16. Easy Setup

We understand that your business might take a long time to grow. That’s why we made our gateways simple to install. Each of our products comes complete with a step-by-step installation guide which should only take a few minutes. The rest of your work will be done over the web using browser extensions!

17. Customer Service

Some of the top gateways offer 24/7 customer service via phone, chat and email. You should choose one that integrates with your online business strategy so you won’t have to worry about contacting tech support at odd hours.

18. Scalability

Some of the most robust LRPGs feature automated scalability. They store all of their records in encrypted files on your servers, which makes it easy to scale up without affecting performance.

19. Multi Currency Support

As mentioned earlier, some LRPGs support several currencies. 24/7 customer service through their websites and phone lines. If you need more assistance, you can contact the companies directly.

20. Security

It goes without saying that security is key to any ecommerce site or low risk merchant accounts. Make sure that your choice has high levels of encryption and security features otherwise hackers could easily access private data about your customers.

21. Design & Branding

Finally, if you want to make your website look good, check out the various design templates offered by each gateway. For example, if you already use PayPal as your main LRPG, then you can quickly customize its color scheme.

While there would be no end of benefits to choosing one LRPG rather than another. It’s always best to do extensive research before selecting an online payment solution from the hundreds available today!

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Please leave a comment below if I’ve missed anything off this list or left something important out.

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