Freelancers and SMEs expect online selling to be efficient and profitable. Making money sounds interesting, but processing it is quite difficult. However, freelancers and SMEs encounter many challenges with the traditional payment gateways, which can create complexities and lead them to search for local payment alternatives that accept online payments.

In this article, we will list some of the main challenges small businesses encounter with traditional payment gateways and local banks:

Lack of technical skills

Building and managing an online store is quite possibly the biggest challenge for small businesses due to the absence of technical knowledge and the ongoing maintenance cost. Not all freelancers and startups are aware of payment integration or developer options needed for the payment portal, nor do all payment gateways platforms integrate smoothly with websites.

Dealing with the payment gateway integration is kind of complicated, that is why many freelancers prefer online payment solutions that initially have built plugins for open source website platforms to facilitate the integration process.

Payment gateways fees

Keeping costs low while generating profits is every freelancer or SMEs dream, but there is always a cost to doing business. Business owners that accept online and credit card payments are charged a fee per transaction, which is referred to as the payment processing fee. The processing fee is calculated based on various factors such as the business type, type of card used, the pricing model preferred by specific payment processors, geographic destination, and average size of transaction.

The payment processing fee that traditional payment gateways charge to freelancers and SMEs is convoluted, without them really understanding how much they will be charged in the end. In addition to the transaction fees, payment gateways may also charge a monthly maintenance fee and an additional fee for transactions that are disputed by customers.

Accepting international payment

As a freelancer, it is always beneficial for the business to spread out across and outside the residing country. And with this comes the challenges of transferring money internationally, which is time-wasting and costly. Also, this method might require lots of documentation if any issues occur.

This leads freelancers in the UAE and the GCC as a whole to seek a payment service provider (PSP) that ensures a competitive conversion rate fees and secure global payment gateway; which is also capable of simplifying a wide range of payments and settlement currencies. This way, the freelancer can ensure a seamless experience for both themselves and their customers in cross-border transactions.

Abrupt freezing of accounts

Nothing can shake your business like a sudden stop in your payment processor, for instance: withheld funds, a freeze on processing ability, or the complete termination of your account.

Many freelancers use their personal accounts to accept payments from their clients but dealing with larger than usual numbers of transactions and international payments might cause sudden freeze of high-volume personal accounts. PayPal has the reputation for freezing accounts seemingly at random and without warning for up to 6 months.

So, what is the best payment gateway alternative in the UAE?

Zbooni is a trusted cCommerce platform that also offers accepting payments from clients in real-time with a fast and safe checkout experience. Freelancers, start-ups and businesses can also benefit from having their own free cShop in minutes that provides them with a social landing page and gives them more control over their work, clients, and payments.