You are running your online business with all the systems in place. You have an integrated ERP, CRM, Inventory, and other systems all working efficiently in sync. But have you considered integrating your payment gateway with other systems you use?
This may not feel very important at first but payment gateway integration can become a huge turning point for your business. That’s simply because your payment data will be automated and synced between all systems making your operations more advanced and efficient.
Types Of eCommerce Payment Gateways
Before we move on to the integration part, let’s first figure out the type of payment gateway you use. This will help us determine the level of technical expertise you will need and make the right choice on the methods of integration.
You’ve likely made payments through all these methods without giving much thought to the type of gateway behind them. That’s perfectly alright and it’s never too late to learn and explore. Let’s begin!
Hosted-Payment Gateway
In this case, the customer is redirected to the online payment gateway portal outside of the ecommerce store. Once the payment is done in the portal, it brings the customer back to the original merchant’s website from where the order was placed. This is a very convenient option for the merchant because it is easy and quick to set up and does not require a lot of technicalities. However, there are downsides. Business owners do not have control over the transaction data and user experience of these gateways because they are third-party payment gateways.
Integration level: This is the simplest payment gateway solution to integrate. This type requires minimal technical expertise, like adding a link or plugin to your website, as the payment process is managed externally.
Self-Hosted Payment Gateway
They are also known as integrated payment gateways. No redirection happens here, payments are processed directly within the online store. In this case, businesses choose to host the payment gateway within their website. This gives them full control over the transaction data and the user experience. However, the setup demands significant technical resources and expertise. Moreover, since everything is happening within the store, business owners are required to stay compliant with the data protection standards such as the Payment Card Industry Data Security Standard (PCI DSS) and an SSL certificate.
Integration level: You’ll need developers to integrate the gateway within your website and ensure compliance with security standards.
API-Hosted Payment Gateway
This one is very similar to the self-hosted gateway. The only difference is that payments are processed through an API (Application Programming Interface) here. Ideally, when a customer makes a payment, it is processed by the API Hosted Payment Gateway and then the API securely transmits the payment information to the payment gateway provider and then returns back to the same page for the payment confirmation. All this happens within the company’s website or app without any redirection to the payment processor’s page.
Another key difference between the self-hosted gateway and API-hosted gateway is the fact that security measures and transaction processing speed are entirely the company’s responsibility for the former while it is a shared responsibility for the latter.
This is again a very good choice for businesses that want control over the transaction process and customer experience. However, integration will require a well-informed development team to navigate the challenges of customization and API integration.
Integration level: This involves API integration and customization. A skilled development team is necessary to set up the system and manage shared security responsibilities.
Local Bank Payment Gateway
These are the types of payment gateways that are directly linked to the bank’s payment system. Businesses choose this option because a majority of their client segment is from a specific geographic location and it is easier and more convenient for them to make payments through a medium they are familiar with and trust. Now the integration in this case relies on external factors such as the technology infrastructure of the chosen bank. For some, it may be easy and for some, it may be difficult. So, it is always better to have experts on board.
Integration level: Integration complexity depends on external factors. However, there are unknown factors involved. It is always a good idea to seek expert assistance from iPaaS solution providers.
Methods Of Payment Gateway Integration
Now you may have an idea about the type of technical resources and expertise you will need to facilitate seamless data exchange between your systems. So, let’s get started with the possible integration methods:
API Integration
This should not be confused with the type “API-hosted integration gateway”. In this type, it takes the payment from the customer, processes it and then transmits the details to the payment processor. Also, this type of payment gateway can’t function without APIs which is not the case in other types.
API Integration can be used in all cases to set up a direct link between the merchant’s website and the payment processor. It acts as a mediator between the various platforms and facilitates data exchange. So, in this case you use the API of the payment gateway to connect to your online store.
Custom API Integration
It’s all API in the end but there are differences. If you use a Self hosted payment gateway or an API hosted payment gateway, you would ideally want to take advantage of the customization flexibility. You’ll be building custom APIs from scratch instead of using the payment processor’s API and this will take time and added costs. Plus, this will require significant technical expertise. And things can go wrong if you choose to go with low-budget inexperienced developers because the cost of rebuilding will be even more both in terms of money and time.
Third-Party Integration
This is the most convenient option of all. In this case, you hand over the task of API Integration, be it pre-built APIs or custom APIs to third-party solution providers. This is affordable and hassle-free and the best part is you do not need a lot of technical expertise in-house. Everything is done and taken care of by these service providers, all you have to do is communicate your specific requirements clearly and efficiently and leave the tough tasks for them.
What Can You Integrate Payment Gateways With?
Here are some popular systems you can integrate your payment gateway with:
eCommerce Platforms
If you think your payment gateway and ecommerce store are working fine without integration, you might be missing out on a lot. Sure, your payment processor and eCommerce application can work independently, but integrating them takes efficiency to the next level. This integration allows customers to complete purchases without leaving your site, providing a smoother checkout process. It also ensures secure, fast transactions while automating key tasks like order confirmation, payment processing, and receipt generation.
Enterprise Resource Planning (ERP)
ERP systems are the backbone of B2B businesses because they manage everything—from inventory to accounting. By integrating a payment gateway with your ERP, you can automate payment-related tasks. For example, when a customer makes a payment, the system can instantly update inventory levels, generate invoices, and log the transaction in your financial records. This saves time, reduces errors, and ensures that data stays consistent across departments.
Customer Relationship Management (CRM)
Integrating a payment gateway with your CRM system creates a direct connection between them. This means you can accept payments directly within the CRM interface, eliminating the need to switch between different tools. It makes the payment process faster and more convenient for your customers.
But that’s not all. The integration also consolidates customer and payment data into one place. This allows you to track payment histories, analyze sales performance, and get valuable insights into customer behavior. It’s a smart way to boost efficiency and enhance the overall customer experience.
Accounting Software
Accounting software like QuickBooks or Xero is designed to simplify financial management. When you integrate it with a payment gateway, payments are automatically recorded, cutting out the need for manual data entry. This leads to accurate financial reports, makes reconciliation easier, and helps you keep a close eye on your cash flow. If you’re managing a high volume of transactions, this integration is a must-have.
Point-of-Sale (POS) Systems
For businesses with both online and physical stores, this integration is beneficial. This integration syncs payment data across all channels, ensuring that sales made in-store and online are reflected in the same system. It also makes inventory management more efficient by updating stock levels in real-time.
Benefits Of Payment Gateway Integration
We live in a time when businesses need to operate efficiently while providing seamless customer experiences. The reason is simple, as more and more businesses go digital the options for customers to switch from you to another always prevail. Plus, without a payment gateway integration, you can always risk a high cart abandonment rate.
So let’s take a look at the key benefits of this integration:
1. Streamlined Operations
Integrating payment gateways with systems such as ERP or accounting platforms eliminates the need for manual data entry. Payment data flows automatically between systems, saving time and reducing human errors. For instance, a payment made by a client can automatically update inventory, generate invoices, and reflect in financial reports without manual intervention.
2. Enhanced Customer Experience
Customers in the B2B space expect smooth, fast, and secure transactions. Integration enables real-time payment processing and instant confirmations, improving trust and satisfaction. Additionally, CRM integration allows businesses to track customer payment histories, personalize follow-ups, and address issues promptly.
3. Real-Time Financial Insights
Payment gateway integration provides businesses with up-to-date financial data. With tools like ERP and accounting systems syncing in real-time, businesses can access insights into cash flow, outstanding payments, and overall financial health, empowering them to make informed decisions.
4. Improved Accuracy and Compliance
Manual processes often lead to discrepancies and errors in payment records. Integrated systems ensure consistent and accurate data across platforms, which is crucial for compliance with financial regulations and audits. This minimizes risks and enhances trust among stakeholders.
5. Scalability for Growth
As businesses grow, managing payments manually or with siloed systems becomes unsustainable. Integration allows organizations to handle higher transaction volumes effortlessly while maintaining efficiency and accuracy. Whether expanding to new markets or onboarding more clients, integrated systems can scale alongside business needs.
6. Cost and Time Efficiency
Integrating payment gateways reduces additional costs by automating repetitive tasks and minimizing reliance on manual labor. It also ensures faster payment processing and reconciliation, freeing up resources for more strategic initiatives.
7. Better Decision-Making
Unified data from payment gateways, CRM, and ERP systems offers a 360-degree view of the business. This consolidated information enables better forecasting, planning, and decision-making, giving businesses a competitive edge in their industry.
8. Competitive Advantage
In a market where efficiency and customer experience are critical, integration gives businesses an edge over competitors still reliant on disjointed systems. It demonstrates a commitment to innovation and operational excellence.
Few Things To Keep In Mind When Choosing An Integration Provider
- Prioritize Data Security: Your customers’ financial data is sensitive information, and protecting it is non-negotiable. While your payment gateway might have robust security features, the integration provider must also ensure a secure connection between your systems and the gateway. Ask them about their security protocols and whether they perform code audits to identify and fix vulnerabilities during the integration process.
- Handle Multi-Currency Payments Smoothly: If your business operates globally, handling multiple currencies is crucial. Your integration provider should ensure that your payment gateway provides multi-currency support and manages conversions seamlessly.
- Offer Multiple Payment Options: Your customers likely prefer a variety of payment methods—credit cards, debit cards, e-wallets, or buy-now-pay-later options. The chosen provider must ensure your gateway handles all these methods efficiently. They should test all the payment options during the setup process to guarantee a smooth and hassle-free experience for your customers.
- Compatibility: Not all payment processing portals may be compatible with the systems you plan to integrate. Choose a provider capable of ensuring compatibility and syncing data effectively between different systems.
Best Practice: Choose An Integration Provider That Makes It Easy
Every business is unique, and DCKAP Integrator understands that. It is designed to adapt to your specific needs, whether you’re a small business or a large enterprise. The solution offers flexibility and scalability, in addition to the custom workflows that fit your business model perfectly. This tool bridges your payment gateway with systems like ERP, CRM, and eCommerce platforms, streamlining operations and ensuring a secure flow of data.
The team provides end-to-end support during the setup and beyond. Whether you need help troubleshooting or scaling your integration, the dedicated customer support ensures you’re never left in the dark. To know more about the tool, book a free demo now!
FAQs
What is payment gateway integration?
Payment gateway integration is the process of connecting a payment gateway with your business systems, like your website, CRM, ERP, or eCommerce platform. This setup allows you to securely process digital payments and manage transactions seamlessly. It ensures that your customers can make online purchases without any hassle, while also protecting their personal data during the process.
How do I integrate a payment gateway into other business applications?
The first step is choosing a payment gateway that aligns with your specific needs. Next, you’ll need to work with a provider offering payment gateway integration services to connect the gateway with your business applications, like your ERP or CRM. They’ll help with technical steps such as ensuring compatibility, configuring the right payment page, and enabling secure data flow between systems.
How do I integrate a payment gateway into my website?
To integrate a payment gateway into your website, follow these steps:
- Create a merchant account with a financial institution or a payment solutions provider.
- Choose a gateway that fits your business size and needs.
- Use the API or plugin provided by the gateway to connect it to your website.
- Configure the payment page for secure and user-friendly online purchases.
- Test the setup to ensure smooth transactions and compliance with security standards.
How do I choose the right payment gateway integration provider?
Select a provider that understands your specific needs, has experience with your industry, and offers end-to-end payment gateway integration services. Look for features like robust security, seamless data flow, low transaction fees, and exceptional customer support. For instance, DCKAP Integrator is the right choice for manufacturers and distributors.
What should I consider when choosing an integration provider?
When selecting an integration provider, ensure they prioritize the security of your customers’ financial data by implementing robust protocols and conducting regular audits. They should also offer seamless multi-currency support if you operate globally and handle various payment methods like credit cards, e-wallets, and buy-now-pay-later options. Most importantly, check for compatibility between the payment gateway and your systems to ensure smooth data syncing and efficient operations.
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