How A Vertically Integrated Payment Gateway Can Cut Your Costs And Increase Your Profits

Jan 29, 2024 | Payments

Are you looking for ways to reduce your business costs and increase profits? One way to do this is by implementing a vertically integrated payment gateway. This innovative solution offers numerous advantages, saving time, money, and energy while maintaining customer satisfaction. Learn more about how a vertically integrated payment gateway can help your business grow.

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What is a Vertically Integrated Payment Gateway?

A vertically integrated payment gateway is a type of payment gateway that offers an all-in-one solution for businesses. For example, companies can use the same gateway to process payments, manage their finances, and track their sales and customers.

Using a vertically integrated payment gateway can save businesses time and money. Instead of using multiple software programs to manage their finances, they can use one program that does it all. This can help businesses keep track of their spending and income and make sure that they are making a profit. In addition, companies can use the same gateway to track their sales and customers. This information can be used to improve customer service and target new customers.


Benefits of Using a Vertical Integrated Payment Gateway

There are many benefits of using a vertically integrated payment gateway. For one, it can save you money on processing fees. Additionally, it can increase your profits by allowing you to keep more of the sale price. 

You are typically charged a per-transaction fee using a traditional payment gateway. This can add up quickly, especially with high sales volume. With a vertical payment gateway, there is only one flat monthly fee, regardless of how many transactions you process. This can save you a significant amount of money in the long run. 

Vertically integrated payment gateways are more efficient and streamlined than traditional gateways. When using a conventional gateway, your customers’ credit card information is stored with the provider. Whenever you want to process a payment, you must retrieve the customer’s credit card information from the gateway and manually input it into your system. A vertical gateway stores the customer’s credit card information in your system.

Benefits of Using a Vertical Integrated Payment Gateway

Security Features of Vertical Integrated Payment Gateways

Vertically integrated payment gateways offer several security features that can help cut costs and increase profits. Here are some of the essential security features to look for:

  1. Encryption: Vertically integrated payment gateways should offer data encryption in transit and at rest. This helps to protect your customers’ data from being intercepted or accessed by unauthorized individuals.

  1. Tokenization: Tokenization is a process whereby sensitive data is replaced with a unique token that cannot be decrypted. This helps to prevent fraudsters from accessing or using customer data even if they can intercept it.

  1. Fraud detection and prevention: Vertically integrated payment gateways should offer robust fraud detection and prevention tools. These tools can help you to identify and prevent fraudulent transactions before they occur, saving you money and protecting your reputation.

  1. Chargeback protection: Chargebacks can be costly and time-consuming. Vertically integrated payment gateways can help reduce the risk of chargebacks by providing features such as real-time fraud monitoring and alerts and automated dispute resolution tools.

  1. Customer support: If something goes wrong, it’s crucial to have access to customer support that can help resolve issues quickly and efficiently. Look for vertically integrated payment gateways that offer 24/7 customer support via phone, email, or live chat, like Tunl.com


How to Choose the Right Vertically Integrated Payment Gateway for Your Needs

How to Choose the Right Vertically Integrated Payment Gateway for Your Needs

When choosing a payment gateway for your online business, there are a few things you need to consider. First, you must decide whether you want a vertically integrated payment gateway or a traditional one. A conventional payment gateway will require you to set up separate merchant accounts with each major credit card company. This can be time-consuming and expensive. A vertically integrated payment gateway consolidates all your credit card processing into one account, saving you time and money.

Another thing to consider is the features you need from your payment gateway. Some gateways offer more features than others, so choosing one with the most critical components is essential. For example, if you plan on accepting international payments, you’ll need a gateway supporting that. Or, if you want to offer recurring billing, you’ll need a gateway that also offers that feature.

Finally, when choosing a payment gateway, read the reviews and compare the prices. There is no one-size-fits-all solution for payment gateways, so finding one that fits your needs and budget is essential. By doing your research, you can be sure you’re choosing the right vertical payment gateway for your business.

The Cost Savings of Using a Vertical Payment Gateway

A vertically integrated payment gateway can save you money on processing fees and increase your profits by allowing you to keep more of the money you earn. Using a traditional payment processor, you typically pay a flat fee for each transaction plus a percentage of the total sale. This can add up to a significant amount of money over time, especially if you have a high sales volume. A vertical payment gateway eliminates these fees by allowing you to process payments directly through your website or app. This means you only pay the actual transaction cost without additional fees. In addition, a vertical payment gateway gives you more control over your transactions, so you can ensure that all payments are processed securely and efficiently.

How to Setup a Vertical Integrated Payment Gateway

 A vertically integrated payment gateway is a great way to cut costs and increase profits. Here are some tips on how to set one up:

  1. Look for a provider that offers a comprehensive solution. For example, a vertically integrated gateway should provide everything from merchant account services to fraud prevention.

  1. Make sure the provider has experience in your industry. They should understand your business model and understand the payments landscape well.

  1. Consider your volume and transaction size when choosing a provider. You’ll want a gateway to handle your expected volume and transactions without issue.

  1. Make sure the provider offers good customer support. You want to know the situation if something goes wrong with your gateway.

  1. Ask about pricing before signing up for a service. A vertically integrated gateway can save you money, but you know what you’re paying for before committing to anything.