What to Consider When Choosing a Payment API

There are many APIs available, so you must understand what constitutes a good payment API and how to select one to ensure a smooth payment experience through an online payment gateway. Continue reading to find out more.

APIs are used to retrieve data by most modern businesses because they automate critical workflows and provide expanded possibilities. An API acts as a go-between for two machines (e.g., different applications). In terms of payments, it makes online and mobile transactions much faster and easier.

You have direct access to the functions that request payment-card authentication, authorization, fund captures, and refunds, to name a few.

How payment APIs work (for non-technical people)

The user performs an action (an API call) that instructs the application on what to do. The application then uses the API to request that the web server complete the action (makes a request). Finally, the user receives the necessary information.

To shed more light on the process, let's look at how a payment API works without using technical jargon.

When a customer visits your website or mobile app, he or she decides to purchase a product or service. They must enter their credit card information on a checkout page.

The data, along with transaction details, is sent to the payment API service.

The card details are sent to the cardholder's issuing bank for authorization via card scheme networks.

The card issuer verifies the card's details, such as ensuring that the cardholder's account has sufficient funds for the transaction and that the card has not been reported lost or stolen.

If everything is in order, the issuing bank authorises the requested amount and debits the cardholder's account.

The API response returns the authorization results to both you and the cardholder.

The funds are received by the acquirer from the card scheme network and deposited into your merchant account.

You can have those funds automatically transferred to your business account.

Now that you understand the role of an API in the best online payment gateway, it's time to go over the key factors to consider when selecting a payment API for your checkout process.

1. Flexibility

The ability to create a payment flow based on your programming language, business logic, use cases, and other factors is referred to as flexibility. This method provides you with operational efficiency as well as complete control over the payment process.

Examine the services provided by the API to assist you in managing your payments. For example, if you intend to accept recurring payments, ensure that you have the ability to create an unlimited number of plans with different billing cycles or pricing tiers.

2. Robustness

It's critical to keep the entire process as simple as possible, from integrating the payment system into your website or app to streamlining the purchasing process for your customers. You can design the flow to meet your customers' expectations with robust APIs.

Robustness, combined with clear documentation, a set of webhooks for all payment events, and an easy-to-follow API structure, will make it simple to handle any type of integration to meet your business needs. It should be simple to create an account and begin making API calls. If the system is well-designed, you can be up and running and accepting cards in minutes.

Examine the performance of features that have an impact on payment processing speed. Is it possible to combine multiple API calls into a single request? Is there a webhook system that allows for automatic exponential back-off retries? When it comes to payments, delays aren't tolerated, so make sure you get a response in milliseconds. Check to see if the online payment gateway you're using can handle the load.

You should consider the user experience. Your checkout page should be user-friendly, so provide a simple interface for a complicated process with intelligent responses for end users.

3. Security

Most processes, including security, can be automated. APIs make it very simple to manage fraud in real-time and accept payments with authentication and compliance steps taken care of.

When processing credit cards and sensitive data, you must ensure that the transactions are highly secure and that the entire payment process on your site complies with PCI standards. Check to see if your payment API is protected by an encryption mechanism.

4. Sandbox mode

When a payment provider provides a sandbox environment, you can test the API without having to implement the payment solution on your website. You'll get a chance to practise using the API by going through the entire payment process and seeing how it works from the customer's point of view.

The testing environment is identical to the production platform, and simulated card-scheme responses are available. To simulate charges, validation errors, disputes, and other issues, you may need to generate some test data and make requests with test card numbers using the API.

Before going live, test the checkout page with testing credentials to see which payment solution or scenario works best for your use case.

5. Decent documentation

Another feature of a good payment API is extensive documentation with clear and concise instructions written by developers for developers. You'll need clear examples and solutions for the provided functionality, as well as decent and public documentation.

Remember that reputable processors provide well-written documentation on their websites, with every method and field explained in plain English rather than technical jargon. It's also a good idea to have guides that include real-world examples and use cases. Look for comprehensive guides that will walk you through the payment system and integration issues.

Complete reference documentation that is updated whenever the API is changed is required. If the API is poorly described, you should be concerned—all it's about payments.

6. Low failure rate

Another factor to consider when developing a payment API is stability. It's comforting to know that you can accept and manage large volumes of transactions without interruptions or surprises. Make sure the payment API is always accessible—you need it to be available when your customers make payments on your website.

Examine the amount of time the API is operational and look for a payment platform with near-zero downtime.

7. Responsive support

This is one of the most overlooked, but most important, factors. Responsive support can do wonders for your business.

A responsive support team is just as important as a strong system. If everything goes well, you won't need it at all, but it's good to know it's there. It's reassuring to know that you can track down your payments and respond in real-time if there are any problems.

When running an online business, you need someone who is ready to assist you right away if something goes wrong with the payments on your website or app. Make certain that a credit card payment provider guarantees your company that it will receive assistance as soon as a problem arises.

Choose payment APIs that meet your needs

When you compare payment providers' APIs, you'll notice that each one is slightly different, so you'll need to know what's most important to you in order to choose the best one for your business. Also, remember that there is a lot you don't need. With this in mind, consider the main functionalities required to meet your company's needs—this will help you make a better decision.

You can use a payment API to accept payments, manage subscriptions, and track user accounts. Consider all of the above factors before deciding on the payment provider with the best payment API for your project.