If you run an online business—selling products, services, courses or subscriptions—you depend on a reliable payment gateway provider. But simply picking any provider isn’t enough. The right choice can boost customer trust, increase conversions, and simplify your operations. The wrong choice can lead to payment failures, unhappy customers and lost revenue.
Here are the key criteria you should evaluate carefully when selecting a payment gateway provider.
you may also like to read: International Payment Gateway — the MSME guide to selling globally
1. Transaction Fees & Cost Structure
One of the first things you notice is how much it costs to use a payment gateway provider. These costs include per-transaction fees (usually a percentage of the amount), fixed fees, setup fees or monthly/annual fees. Razorpay+2Stripe+2
You need to match the cost structure with your business model:
- If you have high volume of small transactions, look for low per-transaction fees.
- If your business has fewer but higher value transactions, flat fees or tiered pricing may make sense.
- Beware of hidden costs like international currency conversion or refund fees.
you may also like to read: Why Payment Gateway Settlement Time Could Make or Break Your Business
2. Speed of Settlement & Processing
It’s not just about fee per transaction—how fast the money reaches your account matters too. A payment gateway provider that offers fast processing (authorization) and quick settlement (funds in your bank account) gives you better cash-flow control. bvnk.com+1
Also, the checkout experience should be fast—delays cause customers to abandon carts. Choosing a provider with good latency and straight-through-processing can make a difference.
3. Supported Payment Methods & Coverage
Your customers expect choices. A payment gateway provider should support multiple payment modes: UPI, debit/credit cards, wallets, net-banking, EMI, and if relevant, international cards and currencies. Razorpay+1
If your business sells globally, the provider must cover multiple countries, currencies, and be compatible with your target region. Coverage also includes mobile vs desktop, local vs global markets.
4. Integration Ease & Technical Compatibility
How easy is it to integrate the payment gateway provider with your website, app or ecommerce platform? If it’s too complex, you’ll spend time and money on development instead of business. PhonePe+1
Look for features like:
- Pre-built plugins for platforms (Shopify, WooCommerce, Magento)
- REST APIs/SDKs for custom builds
- One-click checkout or hosted pages
- Documentation, sandbox testing, good developer support
5. Security, Fraud Protection & Compliance
A payment gateway provider must protect your business and your customers. Security features such as tokenization, encryption, PCI-DSS compliance, and fraud detection are non-negotiable. Razorpay+1
Also important: Know how they detect and manage fraud, what their uptime record is, how they handle chargebacks, and whether they comply with local (and international, if relevant) regulations.
6. Checkout Experience & Conversion Optimisation
Even the best payment infrastructure won’t help if your checkout is clunky. The payment gateway provider should deliver a smooth checkout: minimal redirects, mobile-friendly, consistent branding, fast page loads, and intuitive flow. NTT DATA Payment Services India
A seamless checkout reduces cart abandonment, builds trust and enhances user experience.
7. Customer Support & Reliability
When payments fail or get stuck, you need dependable support from the payment gateway provider. Look for providers with 24/7 support, dedicated account managers or responsive help desks. Reliability also means high uptime (99%+), good system stability, and transparent communication in case of issues. Razorpay
8. Scalability & Future-Proofing
Your business will grow and its payment needs will change. A payment gateway provider should be able to scale with you: higher volumes, new markets, additional payment types (subscriptions, marketplaces, international). If you pick a provider that only serves small-volume domestic business, you may need to switch later. Stripe+1
9. Analytics, Reporting & Dashboard
Insights matter. A good payment gateway provider gives you access to real-time reports: transaction trends, success/failure rates, payment methods used, regional breakdowns. These analytics help you optimise payments and reduce drop-offs. NTT DATA Payment Services India
10. Settlement Terms & Refunds
Check how refunds are handled, what the settlement schedule is (daily, T+1, T+2), and if there are any waiting periods for funds. These terms affect your cash-flow and ability to operate efficiently.
Short Clickable Links for Authentic Sources & References
- Stripe’s Guide: stripe.com/choose-gateway
- Razorpay’s Factors: razorpay.com/criteria-gateway
- HDFC Bank SME Guide: hdfcbank.com/choose-gateway
Frequently Asked Questions (FAQ)
Q1. What is a payment gateway provider?
A payment gateway provider is a service that enables businesses to accept online payments securely and routes payment data between customers, banks and merchants.
Q2. Can I change my payment gateway provider later?
Yes, you can switch providers, but you may need to update integrations, migrate settings, and manage any settlement or contract issues.
Q3. Do all payment gateway providers support international payments?
No. Some only support domestic payments. If you sell internationally, you must pick a provider that supports multi-currency, global cards and cross-border settlements.
Q4. Is zero setup fee a good sign?
It can be attractive, but always check per-transaction fees, hidden charges, and whether the provider meets your business criteria (integration, coverage, support).
Q5. What happens if there is a payment failure at checkout?
If the payment gateway provider has poor success rate, you may lose customers. That’s why you must check success/failure reports and real-time analytics as part of the criteria.
About the Author
Tabrez – Founder of Business Zindagi
Tabrez is a first-generation entrepreneur exporter who built his business from scratch without formal tech training. At Business Zindagi, he shares practical, no-nonsense insights, tools and strategies to help MSMEs, creators and small-town entrepreneurs succeed in the digital economy.
