What is Payment Gateway?
A payment gateway is the simplest and safest way for a business to collect payment for their services.
In order to receive payment, businesses need a portal for the funds to transfer through. The payment gateway is an essential component of the electronic payment processing system.
Finding a payment gateway provider is a crucial step to take in any online business. Understanding what a payment gateway is and knowing how to choose a secure and transparent provider will allow your business to strive.
Here’s What We’ll Cover:
Payment Gateway Systems: Authorizing Secure Transactions
When placing an order, there has to be a method intact to get the buyers money to the merchant. The system in place to allow this transfer is called a payment gateway.
Payment gateways help ensure that a payment is legitimate. The payment gateway process begins in the “checkout” portion of a transaction. Credit card information is run through a process of verification before allowing the transaction to take place.
Seeing as it is the front-end technology responsible for sending customer financial information to the merchant, an efficient and structured system must be in place to see through smooth and consistent transactions.
How Payment Gateways Work
When a Payment Gateway takes place, it is securely bridging the gap between the buyer and the seller to assure an effortless authorization to process.
Payment Gateway - Step by step:
- Buyer adds a product to their cart and is ready to purchase
- Once the buyer clicks “checkout”, they are redirected and the payment gateway is in process
- The systems securely retrieves the buyers credit card information and redirects it to the payment processing network for authorization
- It then returns the information back to the website with verification that the card was authorized and the purchase has taken place
Are Payment Gateways Safe?
As more and more online transactions take place, it’s imperative that secure methods of fund transportation are in place. Studies show that more than 80% of consumers feel safer seeing logos of trustworthy payment options on a website.
By choosing a verified payment gateway provider, business owners are making the checkout payment processor a safer system from fraud and allowing more accessibility for customers.
Payment Gateway systems are instilled for buyers and sellers alike. A buyer needs to know that a seller has a secure system in place to protect their credit card information in the transaction process. Just as well, sellers must verify credit card payments to weed out fraudulent transactions or unauthorized payment methods.
Does my Business Need a Payment Gateway?
When setting up an online store, as long as you want to accept credit/debit card payments you must have a payment gateway system. Without one, there is no way to verify customer payment information, process payments, or finalize sales. A secure and efficient system is essential for any aspiring business.
Merchants can choose secure e-commerce platforms that have built-in technology that will allow payment to process.
Things to Look for in a Payment Gateway System.
Finding the right systems for your business takes research and awareness. Not all platforms are created equal- apply a secure payment gateway system that works best for your setup.
What to Look For:
- Security- a highly secure system will keep buyers and sellers feeling safe through the transaction process. Choose a system that emphasizes security tactics.
- Straight-forward policy- Digging into the logistics of a payment gateway system can be unpleasant for a seller. Finding a platform with a clear and understandable policy will allow you to be more aware of the process.
- Customer Experience- As different systems accept different forms of payment, you want to choose a method that allows buyers to pay with their preferred payment method. Find a provider that allows you to accept a variety of payment methods from your customers.
- Transaction Fees- Be mindful of providers that charge fees per each transaction. These can be costly and add to your overall expenses. Be aware of the fee amount and what services you’re getting to benefit your business.
- Features- Different systems have different optional features. Your business may require edits or options that others bypass. Find a system that allows you the flexibility to make it unique to your specifications.
Secure a System for your Business
Payment Gateway is a key aspect of any online business, and once you secure a trustworthy system for your online transactions, you will have all your payment processing software in check.
Install a Payment Gateway System that will suit your business by delivering a secure payment processing system with a clear policy, features you can customize, and that you and your customers can rely on.
More Resources for Merchants
- How to Accept Payments Online for Your Business
- 8 Tips to Get Paid Faster
- Everything You Need to Know About Online Payments