How does an eCommerce website receive payment from customers? The answer to this question is payment gateways.
What is a payment gateway?
A payment gateway is a portal that is integrated into an eCommerce website to facilitate the transfer of payment securely from buyer to seller (who in this case is the eCommerce website). These are either provided by banks or third-party companies. The whole process involves several levels of security to prevent fraudulent transactions. The integration, however, is quite simple most of the times as every eCommerce framework and payment gateway has one-click install integration tools.
In these times, e-commerce businesses have become very competitive. Customers expect more value for their time and money. So it is very important to get a good payment gateway integrated to your website that provides customers with the ease of checkout and a high sense of security.
In the UAE since the boom of online shopping, several companies have started providing this service. Each of these companies has a different way of charging you for their service.
Some of the popular payment gateways are as follows:
This is a pretty simple portal that can be easily integrated with a variety of eCommerce platforms. They enable fast deposit of payments with websites. At the moment they accept 168 currencies and has been equipped with PCI DSS certification and anti-fraud protection.
You need to have a registered trade license to be able to apply for Paytabs account. Which means a hobbyist or private individual who does not have a registered business cannot get their payment gateway. They also require to have some documentation such as:
Memorandum of Association
One page bank statement with bank logo
Owner’s identity verification
On average they take 4-6 weeks to go live after getting the bank approval. They have very simple pricing.
Starter package where if the monthly volume of transactions is under $2,000. A fixed monthly fee of $49.99 per month is charged (roughly AED 185).
Growth plan where if monthly volume are over $2,000 up to $100,000. They charge per transaction 2.7% of transaction value + $0.27.
Enterprise plan where monthly volume is over $100,000. Please contact them to get custom pricing. They have an initial setup fee of $185.
PayFort is another option who provides online payment options to businesses. It is an Amazon company. Payfort is very innovative and has over 50+ shopping carts to which you can integrate quickly. Payfort also requires you to have a legal business license to open an account with them.
Payfort does not have any kind of initial charges. However, they have a monthly recurring fee of AED 420. Also, an additional charge (bank charges) of 2.94% + 1.84 AED per transaction.
Payfort provides additional services like being able to pay in instalments. If you are looking to enable your customers to pay in instalments, you can consider them. More details on instalment service (https://www.payfort.com/installments/).
2Checkout is a platform that provides a lot of services. The payment gateway is one of them. They are a global brand based in the USA yet very popular in the MENA region.
The reason for them to be included in this list is that they don’t require you to have a trade license or ay sort of company set up. You can create an account and get approved as a private individual provided you have your government identification and your business is valid as per their regulations.
Their application process offers the option of selecting “sole proprietorship” which will allow you to list your name as 100% owner if you are a freelancer or work independently from home. When filling the application provide your home address as the company address. Depending on the location you might have to upload a recent utility bill as a proof of address which must have your name and matching address as provided as the business address.
2Checkout allows transferring funds that have been received back to a UAE bank account.
Their charges for sales business are 3.5% of transaction value + 0.35$.
Their charges for subscription business are 4.5% of transaction value + 0.45$.
Telr is another payment gateway provider that is popular in the UAE. They have been one of the best technology startups around. They follow a three-tier pricing policy:
For an entry customer, it is AED 349 flat for volume up to 20,000 AED.
If your transaction volume is between 20,000 – 50,000 AED, the fees is 2.69% of transaction value + AED 1 transaction fees. In addition, there is a monthly flat fee of AED 149.
For medium businesses where volume is above AED 50,000. The charges are 2.49% of transaction value + 0.50 AED per transaction and a monthly fees of AED 99.
They have custom plans for higher band customer. You can obtain that by getting in touch with them.
The above mentioned are the four more prominent solutions available in the UAE. There are other options such as – Checkout, CashU, CC Avenue and Paypal. While selecting a payment gateway, fees must not be your only parameter as eCommerce businesses scale very quickly. If you were to expand quickly, you would need a payment gateway that you can rely upon.
We do a full payment gateway integration services wherein we take care of all your documentation and technical setups. Contact us to know more.