Chat with us, powered by LiveChat
What is a Payment Gateway

What is a Payment Gateway

This article will help you understand the advantages and features of an authentic payment gateway. Moreover, you would be able to choose a suitable online payment gateway for your business.

Introduction

Payment gateway is a special service designed and developed with and intention of helping businesses with the online billing process. It consists of an in-built billing processor which enables the collection of credit card information and its transmission via the World Wide Web. It is a digital equivalent of a credit card processing terminal. Payment gateway is basically a software application which enables the functionality of a credit card company, enabling merchants to accept online payments.

Types of Payment Gateway

There are basically two types of payment gateways.

  • A widely used Payment Gateway is a secure order form. It directs the client to a third party website for credit card payment processing into an individual merchant account.
  • Another type of Payment Gateway is a merchant-side Application Program Interface (API). A integreation of code is done on the server that hosts the merchant ecommerce web-site.

Benefits of Online Payment Gateway

Payment Gateway simplifies the acceptance of online payments done via credit cards. The below benefits are offered to the merchants

  • It decreases the geo-location barrier. Clients located anywhere in the world can make payments in no time. The merchants are capable of accepting payments from around the globe.
  • Customers can conveniently go about with making payments with faster speeds and ease.
  • The customers are immediately notified about acceptance or decline of payments in real time. This helps maintaining transparency in the payment processes.
  • The payment gateways guarantee 100% safe and secure transactions. Merchants have the facility to offer a money back guarantee as well. So if a customer wishes to withdraw the services or product usage, they can claim their money back, which too would happen with enough speed and security.
  • Since businesses have no restriction for payment acceptance, they can focus more on expanding their businesses across other geo-locations.
  • It helps in reducing the infrastructural and the human resource costs.
  • The process is remarkably faster than the traditional payment modes.
  • Business hours aren’t constraints with online payment gateways, customers can go about making payments even in the non-working hours and place an order for the product
  • The entire process is carried out via. a highly secure (encrypted) network. Hence, customers can stay rest assured about their money. Customers should only ensure by checking at the address bar, there in the URL you should see “https://” before the domain name. This indicates that it is a secure site with an SSL installed on it.

List of Widely used and Trusted Payment Gateways :

  • Paypal
  • Google Checkout
  • Verisign
  • Authorize.net
  • Linkpoint payment gateway
  • 2CO
  • CCAvenue

Checklist

When selecting a payment gateway that is best suitable for your payment services on the ecommerce site, you must check the below criterias :

  • You must check the compatibility of the Payment Gateways. This is one of the most important aspects when thinking of adding a payment gateway to your ecommerce website. Before making a choice of an eCommerce shopping cart, it is better that you check if your payment gateway is compatible with it.
  • The Address Verification System (AVS ) protection is another important and very useful feature of payment gateways. This helps in detecting fraud payments and transactions. The Address Verification System holds the capability to verify the address of the card holders billing address. Therefore, before you select a payment gateway, you check that they offer an AVS protection facility.

Depending on the payment gateways, fixed per transaction charges needs to be borne by the merchant. Hence, it is also important to checkout the charges before choosing a gateway.

A quick wrap-up of procedures :


Pointer 1 – To make sure that the gateway compatible with the eCommerce shopping cart. Get in touch with the eCommerce web hosting provider to have a better understanding of payment gateway compatibility with a particular shopping cart.

Pointer 2 – Most of the widely used payment gateways provide more or less the same features, its only the price that usually differs. But doing a thorough research about the level of security and the price at which it is offered can help you to find a perfect payment gateway for your requirements.

Pointer 3 – Making sure that the payment gateway service offers the Address Verification System (AVS) protection. This would help you prevent the future problems with fraud payments.

Sharing

Leave your comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.