If you plan on taking electronic payments, you'll need to get setup with a payment gateway to process the transactions. But savvy businesses are thinking about their gateways in a more strategic way. The right partner can save you money, reduce fraud, and help you enter new international markets. Today Zuora is pre-integrated with many of the most popular gateways and processors in the market.
For the certain businesses, working with multiple gateways can add even more value. Zuora makes it easy to route payments to different gateways for each customer in the system. Here are a few of the most popular strategies we see our customers using:
Segment by Country
If you're doing business internationally, you may get better rates in a certain country through a certain gateway provider. In this case, it makes sense to set up your US-based customers for payments through one gateway, while routing European based customers to another provider.
Segment by Payment Method
Some customers may choose to pay by credit card, while others opt for direct debit. As different gateways may offer different rates for these payment methods, there could be an opportunity to shave your transaction costs by appropriately routing the payment to the right gateway.
Segment by Customer Group
If you're selling services in different market segments, you may find different payment behavior across your customers. For example, one product line may be more susceptible to fraudulent payments or charge backs than the others. In this case, you may want to consider a "premium" gateway that offers services to reduce fraud and chargebacks for customers subscribing to that product line, while routing everyone else through a more "economical" gateway.