Payment gateways for small businesses in South Africa

Find out everything you need to know about a payment gateway for your small business's online shop. in South Africa

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Payment gateways for online shops in South Africa

Online shopping has never been more popular. More and more South Africans are shopping online. It’s easy to understand why. It is a convenient way to shop. The COVID-19 pandemic made online shopping even more popular. Payment gateways in South Africa make online shopping possible.

As a small business entrepreneur, do you plan on selling goods on a website with an online shop? If yes, you’ll need a payment gateway if you would like to receive online payments or credit card payments on site. 

We spoke to a small business owner about payment gateways. Jen, the owner of the Cyrus Health Store, shared her thoughts about how she needs a payment gateway.

Read Jen’s thoughts about a payment gateway for her online store

How could a payment gateway help your business?

  • “I have an online shop, but it doesn’t have a payment gateway yet. It has been tricky to find one that would work with my website. I’m currently processing sales and payments separately, which is risky because I don’t have the payment before processing customers’ food orders. Luckily, all my current customers are trustworthy, but it will get riskier as my business grows. So, a payment gateway would decrease the level of risk to run my online store.

  • "A payment gateway would also mean less admin, like following up on some late order payments. So, customers place orders and do EFT payments or pay cash at a later time instead of at the moment that they place their food orders, as you would on, for example.

  • “Also, a payment gateway will help with my cash flow as well. My customers all pay, but sometimes they are delayed or too busy to make payments straight after ordering their food on my website. I’m still looking for a payment gateway that will work with my website, or I need to create a new website that is guaranteed to work with a payment gateway as soon as possible.

  • "Then, for my business to grow, I will need a payment gateway to be able to process thousands of sales a month. There is no way I could manually process so many sales with a spreadsheet and follow up with so many customers to make their payments. I want my online store to grow to that level in the future."

Even though all this technology stuff may be new to you, don’t worry because the explanation about a payment gateway is on the way. Once you know, you can apply this to your business. Read on to discover more about payment gateways.

Do you have any tips to prevent online fraud?

“Keep a close eye on your SMS notifications and bank statements. Also, remember that your bank will never ask you for your OPT (One Time Password) or PIN. Please always double-check everything when it comes to making online payments. For example, if you have a concern, call the company to confirm if the email or SMS you received is legitimate.”

Do you want to know more? Read on to get more tips and insights.

Learn more about payment gateways

What is a payment gateway? In a nutshell, it’s a technology that reads and transfers payment information from your customer’s bank account to yours. Its function is to capture data, make sure there’s enough in your customer’s bank account, and send you the cash.

A payment gateway’s software is part of a point-of-sale (POS) system or card reader that processes a transaction made when your customer pays with a card.

How does a payment gateway work?

You might have used a payment gateway many times before when you shop online, or you could be new to it. Either way, find out more about how payment gateways work.

  • A customer starts a purchase by clicking a ‘Buy now’ or ‘Shop now’ button on your business website.

  • The payment gateway immediately kicks in, first checking whether the customer has sufficient funds in his bank account.

  • Also, the gateway won't allow the payment to proceed if there are insufficient funds due to a credit card limit. If there are enough funds, the gateway processes the transaction by sending encrypted card information to the bank. 

  • The bank then approves the transaction, and the gateway sends this information back to your website. The gateway sends a request to the customer’s bank to transfer money from his account to your business account. This is done while protecting the customer’s banking details and other private information.

Phew – quite a few steps, but which only take a few seconds.

Now that we have covered what a payment gateway is and does, you’ll need to get one for your small business.

Yoco's Payment Gateway

It takes only 5 minutes to set up Yoco Gateway, Yoco’s payment gateway. It accepts card payments and instant EFTs on your business website. You have to create your Yoco profile in a few minutes. Next, link your website to your Yoco profile, and you can now receive payments on your website. The cash will be in your account within two workdays.  

Safety and security

The good news is that the Yoco Gateway is safe and secure through Yoco’s effective 3D-secure technology.

What about overseas payments?

You’ve noticed that some overseas customers have been browsing your online store. No hassle – you can receive payments from anywhere in the world.

You can count on Yoco’s support

Your Yoco Gateway-powered online shop can be a great success. Our well-trained, local team is on standby to help you to get started. So, don’t wait to get in touch.

Yoco Card Machines and Online Payments

Quiz Question 1

Want to sell in person, online or both?

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