Biggest Challenges faced with E-commerce payment gateways


People love shopping online because it is simple, requires minimal effort, and they do not have to run to the offline markets for a single purchase. 2021 has been the year of small businesses and medium-sized enterprises taking their products/services online. Facilitated by robust payment gateways, online shopping along with eCommerce payments foresees an upward trend that is here to stay.

Payment gateways have become the need of the hour for merchants. It is the only way that allows businesses to accept online payments via a diverse range of methods on one platform. The multitude of benefits that eCommerce payment gateways offer helps companies to enhance their position in the market. It helps enterprises connect with their customers and receive payments instantly.

However, even the best payment gateway for India will come with its own setbacks and problems. While there are countless boons to integrating with a payment gateway, it is not fool-proof, especially with unreliable payment gateways. After all, payment gateways are technological innovations and prone to loopholes that create challenges.

However, the good news is that most of these challenges can be overcome using the best-in-class payment gateway. Here’s a list of some likely difficulties that businesses might face in their dealings with online payment gateways in India and how to possibly overcome them!

Hidden Charges

A payment gateway offering online payment solutions generally charges a fee for each transaction. UPI and RuPay debit card payments are often exempt from such charges. Beyond this, online payment gateways usually charge onboarding fees, annual maintenance charges, integration fees, etc. The bottom line is that the bill can run into pages.

Often, the payment gateways do not mention their pricing clearly on the website. Further, they may use complex terms and jargon too tricky for even professionals to understand.

This is where some payment gateways take the cake. Zaakpay, for example, has a 100% transparent pricing policy. It promises 0 maintenance or setup fee and even offers customized plans for merchants. What is the most interesting to see is the special offers for start-ups and growing enterprises.

Low Internet Speed

The digital divide in terms of powerful internet connection continues to dominate remote parts of India. The internet bandwidth across the country differs in each region. Many areas still gave primitive internet connections while urban areas have embraced the optic fiber revolution. Therefore, a payment gateway may not successfully process the payment in the first attempt in such places.

This makes it crucial for businesses to go for a payment gateway with a high transaction rate, even with slow internet connections. Moreover, reducing the number of steps required to complete the transaction can make it easier to work with slow internet.

Data Security

Any consumer transacting through an online payment gateway has to enter sensitive payment information for the transaction to be processed. Often, for convenience, the users also save the data for easier checkouts in the future. This exposes them to the risk of payment information getting leaked or being accessed by fraudsters.

This is where the security measures taken by online payment gateways come in handy. The first and foremost amongst these measures is encryption. Some of the best payment gateways for India, like Zaakpay, offer SSL encryption for data entered in the public domain by any user. Without this security measure, a user’s payment information would be accessible by all on the internet. PCI DSS compliance and tokenization are other essential security steps online payment gateways take to ensure data protection.

Technical Snags

Ecommerce entities will likely have an existing website or mobile app with which the online payment gateway is integrated. Technical issues can arise starting right from this point. Some payment gateways haven’t adapted to smartphones and provide website services only, while others require complicated coding for successful onboarding.

Furthermore, technical problems can go beyond the point of integration as well. Often, a faulty plug-in can lead to “servers down” and negatively affect the user experience. This, in turn, can result in online shopping cart abandonment and affect the brand image. These are common problems affecting even some of the best payment gateway for India.

Online payment gateways that offer convenient plug-ins and no-coding integration will be the most effective solution to avoid such issues. Searching for mobile-friendly gateways also becomes highly relevant here.


Chargeback fraud, sometimes called friendly fraud, is another major problem with online payment gateways. This happens when a customer voluntarily makes an online purchase and then contacts their issuing bank for a chargeback despite receiving the purchased goods or services with mala fide intentions. A chargeback can be referred to as a disputed transaction reported by the customer.

When a chargeback request is processed successfully, the selling entity is held accountable, regardless of the delivered products or services. Most importantly, online payment gateways may penalize the merchant in case of a chargeback. This is due to the risk that payment gateways have to face since they can be shut down if their chargeback rates get too high. Going through the contract with the payment gateway can save a lot of disputes from arising later on to overcome this particular issue. Choosing a payment processor that has strict policies for chargeback management can help overcome this issue.


India is one of the quick-growing digital economies in the world. To grow as a merchant in this rapidly developing economy by partnering with the best payment gateway for India can guarantee access to business expansion and enhanced operational efficiency.

Online payments are the future of all financial transactions, and recent developments like the smartphone boom, the pandemic, and increased access to the internet have only accelerated this development. The benefits of a payment gateway cannot be underestimated. However, eCommerce businesses need to be aware of the setbacks choosing the wrong payment gateway can land them in. Zaakpay is the solution to all these woes that helps enterprises overcome even the most formidable challenges with excellent features and 24×7 customer support.