News, Education and Events Decoding Digital Payments & Fraud

News, Education and Events Decoding Digital Payments & Fraud

How Does Your Payment Gateway Stack Up? – Sept. 23, 2013

How Does Your Payment Gateway Stack Up?

Sept. 23, 2013

That’s the question Spreedly has tried to answer for merchants with the launch of its GatewayIndex. Founded in 2008, the Durham, N.C.-based startup provides a set of APIs enabling e-commerce merchants to manage multiple payment gateway relationships with a single integration to Spreedly. But, whether a merchant uses one payment gateway or many, transparency on pricing and performance is not always easy to come by, according to Justin Benson, Spreedly’s CEO.

“One of the things we heard from merchants is ‘we have zero visibility into whether our success rates are good, bad or horrible for this particular gateway and we have no idea how well our gateway does relative to other payment gateways,’” said Benson.

To combat this, Spreedly recently launched a free tool for merchants called the GatewayIndex. The index currently gives a graphic picture of nearly 50 popular gateways in terms of success rates, processing speed, volume, countries supported and average ticket size. To get a more complete set of data for their evaluation, Spreedly partnered with Shopify, which agreed to share transaction data from its merchant clients for the project.

Spreedly GatewayIndex

Benson said he doesn’t expect too many merchants to simply look at the data and dump their gateway. But, he does think the GatewayIndex can be a starting point for important conversations between online merchants and their payment providers.

“The first step is shining light into this area,” he said. “We’ve had customers in the past who have struggled with decline rates and have been very disappointed with the conversations their gateways had with them. They do nearly nothing to help them walk through the reasons. In worst cases, they were trying to upsell them. Now a merchant at least can know where they stand.

“Armed with this information they can go to their existing gateway provider and say, ‘this is where I am, this is what the industry standards are, let’s have a conversation about why I’m not doing well.’”

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Daniel Leibovitch