https://www.chetu.com/payments/gateways-processors.php Custom payment processor and payment gateway software development and implementation services for secure and reliable payments solutions.

1. Founded in early 2000, Chetu has been a trusted name in software development for more than 19 years. Headquartered in South Florida, Chetu is
governed by U.S. laws and standards for software development in Healthcare, Finance, Hospitality, Gaming, Retail, and eLearning. Chetu brings the best
of both worlds in software development by combining high-quality, low-cost programming with local project managers and a team that works in the
client’s time zone to ensure questions and concerns are addressed in real-time. Our growing clientele includes Fortune 500 companies and mid-sized
organizations. The name Chetu is derived from the Sanskrit word“chetna”, which means consciousness of mind.
A payment gateway should allow you to accept payments quickly and easily. The key component of any payment gateway is to
process transactions securely and keep your customer's money and data secure. A secured payment gateway helps you gain the trust
of your customers so they are willing to make transactions. A custom payment gateway may require a greater initial investment in
ABOUT CHETU
terms of time and money, but this custom solution will dramatically help in growing your business.
There are a vast array of payment gateways to choose from in today's market, each with their own benefits and drawbacks that affect the services you can
offer through that payment gateway. Determining whether the pros outweigh the cons in every off-the-shelf product available can make finding the right
payment gateway for your business an extremely time-consuming process.
Below, we discuss the pros and cons of creating a custom payment gateway, the key components of a payment gateway portal, common pitfalls,
differentiating factors for your payment gateway in an already overcrowded market and what are the merchants looking for.
Analyzing the Pros & Cons of Creating Your Own Payment Gateway
BUILD YOUR OWN PAYMENT GATEWAY
By: Pravin Vazirani
World-Class Software Solutions
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Key Components of Payment Gateway Portals
• Integration with Multiple Processors - Integration to different payment processors provides multiple options for your merchants to choose
from when selecting the acquiring bank they want to use to create a settlement account. This also helps you provide competitive transaction fee rates to
your merchants, as different processors have different interchange fee rates depending on factors such as merchant's business and transaction volume.
• Security – PCI Compliance & Fraud Management - Every merchant looks for a secure payment gateway that will help them gain the customer's
confidence. Merchants also look for fraud detection mechanisms built into payment gateways to avoid chargebacks and other issues that result from
processing fraudulent purchases.
• Scalability to Add New Features - The ideal payment gateway for any merchant should be able to adapt to the ever changing world
of online payment processing. The upcoming surge and worldwide acceptance of new payment methods, such as the Bit Coin currency, is
one example of why merchants must have a payment gateway that they can easily customize and update.
• Pros:
Save on Payment Gateway Fees - Off-the-shelf payment
gateways usually have a high sign-up cost and a fee associated with
every transaction that is made, which over time eats up a large portion
of your profit. With your own payment gateway, you save on these
long-term fees and sign-up costs.
Custom Features - Even if you manage to find a good, reasonably
priced off-the-shelf payment gateway that offers low transaction fees,
you can still find yourself restricted by the limitations of that gateway.
For example, a payment gateway owned by a third party may not
support recurring payments and multi-currency transactions, which
would limit your ability to process such transactions. With your own
payment gateway, you can customize and add new features
depending on your business needs and requirements.
Offer Payment Gateway Products - You can offer and sell your
payment gateway as a product to other merchants, ISOs, and Agents.
• Cons:
Payment Gateway Development Costs - There are several
development and maintenance costs associated with building your
own payment gateway. The initial cost of creating your own payment
gateway is typically higher than paying the associated fees to use an
external payment gateway; however, by opting to go with a custom
platform you are also investing in a long-term product for your
company that is optimized to meet your specific business needs.
Payment Processor Integration & Certification Cost -
Integrating with payment processors is time-consuming and requires
going through a lengthy certification process. Using an off-the-shelf
payment gateway is often simpler and faster in this respect, as you
essentially pay for the convenience of using an existing gateway.
Handle Settlement Reports - Payment processors send settlement
reports in a raw format.

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• Disputes/Chargeback & Arbitration - Merchants will benefit from a payment gateway that has an interface to report and handle disputes
from issuing banks.
Common Pitfalls of Payment Gateway Portals
• Stuck With a Single Processor - A payment gateway integrated with a single processor will not be able to offer competitive fee rates to merchants.
The payment gateway will also not be able to offer multiple options for creating settlement accounts between banks and merchants.
• Manual Processing of Settlement Reports From Processor - The settlement reports coming from processors need to be manually parsed in
order to be presented in a readable format, which can be a very time consuming and cumbersome job.
• Not Supporting Recurring Payments - Most merchants do not want to store a customer's credit card information on their site and will prefer to look
for a tokenized approach for accepting recurring payments from their customers.
• Not Providing an Off-Site Payment Interface - Merchants tend to look for a "pay page" within a payment gateway to redirect their customers for
processing ad hoc payments.
Differentiating Factors in an Over-Crowded Market
• APIs For The Outside World - Building an easy and simple to use API to be used by merchant application.
• Enhanced Security (3D Secure Transactions) - Merchants always look for security measures added in the payment gateway that will reduce
chargebacks.
• Ability to Handle Disputes, Chargeback & Arbitration - Merchants need a good interface and reporting mechanism to view and manage their
chargebacks.
• Providing Off-Site Payment Interface - Merchants typically opt to have a "pay page" for their payment gateway to submit and process ad hoc
payments.
• Supporting Recurring Payments - Merchants do not want to store a customer's credit card details on their site and will often prefer to look for a
tokenized approach for accepting recurring payments.
• Customer Support - Merchants will seek round the clock customer support to make sure that their business is not negatively affected by glitches on
the payment gateway side.
What Are Merchants Looking For in Payment Gateways?
Owning a payment gateway that is designed to your specifications can be a valuable tool for your business. It allows you to provide a single, integrated
solution for point of sale (POS) and payment processing, which you can then offer to merchants as a replacement of the current payment gateway they
may be using.
However, to ensure that merchants are willing to part with their current provider, your payment gateway must be secure to reduce the risk of charge backs
and have a wider range of options for choosing an acquiring bank for creating settlement accounts. It should also offer competitive fees, faster settlement,
excellent customer support and high-quality reporting.
For more information on payment gateway and processing solutions, visit www.chetu.com/payments/gateways-processors.php
Disclaimer:
Chetu, Inc. does not affect the opinion of this article. Any mention of specific names for software, companies or individuals does not constitute an
endorsement from either party unless otherwise specified. All case studies and blogs are written with the full cooperation, knowledge and
participation of the individuals mentioned. This blog should not be construed as legal advice.
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