Quick Start Guide to BigCommerce Payment Gateways in Singapore

What is a BigCommerce Payment Gateway?

BigCommerce Payment Gateways are services that enable store owners to accept online payments from customers at checkout. This service facilitates transactions by securely processing payments made through various methods, such as credit cards and digital wallets.

BigCommerce supports over 65 payment gateway integrations, including popular digital wallets like PayPal, Apple Pay, and Amazon Pay. While the payment method refers to the method of payment used by customers—whether cash, wire transfer, or digital wallet—the payment gateway handles the behind-the-scenes process of transferring money from one account to another.

In addition to these integrations, many payment gateways are built directly into the BigCommerce platform.

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How do BigCommerce payment gateways work in Singapore

BigCommerce Payment Gateways in Singapore operate similarly to those in other regions, with specific considerations for local payment preferences and regulations. Here’s a detailed overview of how they work:

Customer Checkout

The process begins when customers complete their shopping on your BigCommerce store and proceed to the checkout page. Here, they input their payment details, including credit/debit card information or other payment methods supported by your store. 

At this point, BigCommerce Payment Gateways come into play, handling the secure transmission of these payment details. This step is crucial as it sets the stage for the transaction and ensures that the payment process is both secure and efficient.

Payment Processing

Once the customer submits their payment details, the BigCommerce payment gateways step in as an intermediary. It encrypts the payment information to ensure secure transmission over the internet. This encrypted data is then sent to the payment processor, also known as a merchant acquirer. In Singapore, this processor could be a local bank or a third-party payment service provider.

The payment processor’s role is to verify the payment details with the customer’s bank or card issuer. This involves checking for the validity of the card, ensuring sufficient funds are available, and confirming that the transaction is not flagged for fraud. The processor communicates with the issuing bank to perform these checks and secure the necessary authorization for the transaction.

Authorization and Funds Transfer

After the payment processor completes the verification process, it sends an authorization signal back to the BigCommerce payment gateways. If the transaction is approved, this signal indicates that the funds are available and can be transferred. The payment gateway then relays this approval message to your BigCommerce store, confirming that the payment has been authorized.

At this stage, the funds are not yet moved to your account. Instead, they are placed in a temporary holding account, also known as an “authorization hold.” This hold reserves the money for the purchase but does not finalize the transaction. The funds remain in this holding state until the transaction is fully completed and processed.

Order Fulfillment

Upon receiving the authorization, you can proceed with fulfilling the customer’s order. This involves picking, packing, and shipping the items as per the order details. Once the order is ready for dispatch, BigCommerce gateways facilitate the final capture of funds.

The capture process involves moving the funds from the holding account to your merchant account. This transfer finalizes the payment, making the money available for you to access. Depending on your payment gateway and processor, this may occur automatically or require manual intervention.

In Singapore, BigCommerce payment gateways offer a range of options to accommodate various payment methods and currencies, ensuring a smooth and secure transaction experience for both merchants and customers.

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What to Consider in Choosing the Best BigCommerce Payment Gateways in Singapore?

Pricing

Understanding the cost structure of a payment gateway is essential for financial planning. BigCommerce payment gateways typically have multiple fee components:

• Transaction Fees: These fees are charged per transaction and can be either a flat rate or a percentage of the transaction amount. For example, a gateway might charge 2.9% + $0.30 per transaction. This fee can add up, so it’s important to estimate how much you’ll be paying based on your sales volume.
• Monthly Charges: Some payment gateways impose a monthly fee, which may vary depending on the features and services provided. This can include account maintenance, access to additional tools, or premium support.
• Setup Costs: Initial setup fees may apply when you first start using the gateway. These can include installation, configuration, or hardware costs if applicable.

Carefully analyze your projected sales volume and transaction frequency to select a gateway that offers a pricing model that aligns with your business needs. Look for transparent fee structures to avoid unexpected costs and ensure that you understand all potential charges.

Ease of Use

A payment gateway should integrate smoothly with your BigCommerce store to facilitate a seamless transaction process. Consider the following aspects of BigCommerce payment gateways:

• Integration: Ensure the gateway integrates effortlessly with BigCommerce. Look for options that offer pre-built integrations or easy setup processes. Some gateways provide plugins or extensions specifically designed for BigCommerce, which can simplify the integration.
• User Interface: The gateway’s dashboard and management tools should be intuitive and user-friendly. This includes features for monitoring transactions, generating financial reports, and managing refunds or disputes.
• Customer Checkout Experience: A well-integrated gateway ensures a smooth checkout process for your customers, minimizing friction and reducing cart abandonment rates. The gateway should provide a seamless transition between your store and the payment processing interface.

A gateway that is easy to set up and manage can save you time and reduce potential errors, contributing to a better overall experience for both you and your customers.

Security

The revenue from security solutions in Singapore is projected to grow at an annual rate of 11.60% from 2024 to 2028, reaching an estimated market volume of US$52.3 million by 2028. 

This growth underscores the market’s strong emphasis on security. To protect your transactions and align with this focus on security, it is essential to choose BigCommerce payment gateways that prioritize robust security measures.

• PCI Compliance: Verify that the gateway adheres to Payment Card Industry Data Security Standards (PCI DSS). This certification ensures that the gateway implements necessary security measures to protect cardholder data.
• Fraud Prevention: Look for gateways that offer advanced fraud detection and prevention tools. Features such as real-time fraud monitoring, address verification services (AVS), and secure tokenization help mitigate the risk of fraudulent transactions.

Ensuring robust security measures helps build trust with your customers and protects your business from potential security breaches and financial losses.

Flexibility

As your business grows and evolves, so too will your payment processing needs. It’s important to select BigCommerce payment gateways that can adapt to these changes, providing flexibility to accommodate new payment methods, handle increased transaction volumes, and support advanced features as your business expands

• Variety of Payment Methods: Support for a wide range of payment options, including major credit cards, debit cards, digital wallets (like Apple Pay and Google Pay), and alternative payment methods, is important to cater to diverse customer preferences.
• Recurring Billing Options: If you offer subscription services or products, ensure the gateway supports recurring billing and automatic payments. This feature is essential for managing subscriptions and ensuring consistent revenue flow.

Flexibility in payment options allows you to accommodate different customer preferences and adapt to changing business needs, enhancing overall customer satisfaction.

Reviews & Reputation

The experiences and feedback from other users can offer valuable and in-depth insights into the performance, reliability, and overall effectiveness of BigCommerce payment gateways. By examining detailed reviews, testimonials, and case studies from businesses that have utilized the gateway, you can gain a comprehensive understanding of its operational strengths and weaknesses. 

• Customer Reviews: Read reviews and testimonials from other businesses that use the gateway. This can provide insights into the gateway’s performance, customer service quality, and reliability.
• Industry Recognition: Look for awards, certifications, or positive mentions in the eCommerce industry. Recognition from reputable sources can indicate the gateway’s credibility and effectiveness.

Researching user experiences and industry feedback helps you make an informed decision and choose a gateway with a proven track record of reliability and support.

Conclusion

A payment gateway is an essential component of any online payment processing system. Understanding the full scope of how BigCommerce payment gateways work, as outlined above, will help streamline your BigCommerce business operations.

By selecting the best BigCommerce payment gateways for your needs, you can maximize your sales potential. SmartOSC, a leading BigCommerce partner and one of Asia’s top eCommerce development and solutions companies, is here to help. With extensive experience assisting businesses across various industries, we are confident in our ability to enhance your conversion rates. Contact us today to see how we can support your business growth!