Complete Guide to Payment Gateways in UAE:
Everything You Need to Know
      

Are you looking for a payment gateway or considering switching to a better one, but unsure about the process? You’re in the right place! No matter whether you are just starting a business with no prior experience or even running a big e-commerce brand, having a secure, personalized payment gateway that suits your business best to accept payments with no difficulties is important.

In this blog, we are going to talk about payment gateways from an introductory level to an advanced level, with simple terms for better understanding, while talking about the important terms you should know to make a better decision while choosing a payment gateway in the UAE.

What is a Payment Gateway?

A payment gateway is more like a broker or bridge between your website and the customer’s bank. Irrespective of whichever bank your customer has their account in, or whether it’s a national or international bank, its only work is to check the availability of funds in the customer’s account and approve the process of the transaction, and then transfer the funds from the customer’s account into your account.

Having a payment gateway in the UAE that follows all the rules and regulations in the UAE and complies with CBUAE is very important for your business; it helps build trust in your customers’ minds by having features like PCI-DSS encryption, face recognition, KYC, and much more, which prevents fraudulent activity and also keeps customers’ data safe.

Why do you even need a payment gateway in the UAE?

The major reason is customer preference, and most customers prefer cashless payment, such as one-tap payment or Apple Pay, as it is harder to carry cash, as well as much more hectic and less secure. And a new business offering a secure and reliable payment gateway option for a customer—what else could a customer want?

What a reliable payment gateway offers

• Faster Settlement

• Secure Encryption Features such as PCI-DSS & Face Recognition

• Must follow Anti-Money Laundering (AML) Regulation

• Support internal payment and multiple payment methods

Different types of payment gateways

1. Hosted Gateway—After the customer adds the product to the cart and goes for payment, it takes the customer to a separate page to complete the transaction. It is easy to set up, but it’s customizable.
2. Integrated Gateway—In this type of online payment gateway, the payment happens on the website itself. You can customize it a bit, but the setup is a bit more technical.
3. Mobile Focused Gateway— Mobile-focused Gateway could be the best choice for businesses whose customers are mostly smartphone users.
4. International Gateway—International Payment Gateway accepts transactions through different gateways from all over the world and is the best choice for businesses whose users are mostly international clients.

In starting, most businesses start with hosted payment, as in the starting period of a business, it is the most reliable and quick-to-launch payment solution. As a business grows, it could later switch to an integrated setup for a customizable solution according to its business.

How does payment processing work?

1. After selecting a product, a customer goes to the checkout page of the business and enters card details.
2. After the payment gateway receives the data, it sends the customer data to the card network.
3. The banks check if the customer has enough funds in their account.
4. Then the payment processor goes to the next step, depending on whether the transaction was approved or declined.
5. Then the funds get transferred to the merchant account, and then, depending on the settlement time, they get transferred to the business account.

The most fascinating thing is how all these things happen in a few seconds.

Regulation in the UAE for Payment Gateway

In the UAE, the Central Bank supervises and authorizes all payment services. Any payment provider that is offering online payments in the UAE has to follow all the rules and regulations issued by the central bank, such as KYC and PCI-DSS.

What should you look for in a payment gateway in the UAE?

• Fee Structure—Having a payment gateway that offers transparent pricing is important, and avoiding payment gateway providers that have hidden charges per transaction.
• Settlement time—Having a cash flow is very important for a business, so choose a payment gateway that offers a fast settlement time.
• Integration—A reliable gateway should be easy to integrate with an e-commerce website, such as Shopify, WooCommerce, Magento, etc.
• Support—Having a Gateway with 24/7 support service is important because you never know when you need it, and it also shows authentication.
• Extra features—such as one-tap payment, 3-D recognition, real-time dashboard, and new features being updated—are important.

Conclusion

One of the best payment gateway providers in the UAE is Paycaps. It offers a secure and flexible payment gateway with support for multiple payment methods and currencies. Additionally, Paycaps provides a white-label payment solution, allowing businesses to customize the gateway according to their specific needs.