As a buyer, When you go to your local grocery or convenience store, you might check out with your debit or credit card usually through a point-of-sale hand-held device. But what if you are the retail merchant or distributor and your business is mainly done online, then what do you do? basically, that is the job of the payment gateway.
You will see this when you make an online payment from a foreign online website. It will ask to confirm your details with your bank details and might even ask for a security question.
As a buyer or a consumer, when you are checking out at a shop, you may swipe or tap your card on the portable hand-held ATM.
But what if you have an online business, then what course of action should you take? This is where the online payment gateway or portal comes into action. This is a secure method of encrypting information with the buyer and confirming his information according to the bank he or she is connected with.
Everyone who does basic shopping online knows that they have to go through a verification phase to prove the identity of the cardholder.
So, what is a Payment Gateway?
Payment gateways give the freedom to allow certain online businesses or merchants such as e-commerce store owners or online sellers to accept credit card payments over a secured gateway.
It goes through a process of card-holder authorization and is then checked to ensure that the buyer has enough funds to cover the total charges. From here onwards it is then "held" in place until the verification is done.
This is also done so that they don't turn around and use the same money on a different transaction until the funds have been transferred to the sellers account. This is a necessary technology in the day and age we live in.
A Payment Gateway is not a seller portal or an account
There is a lot of confusion between what a payment gateway is and what a merchant account is. Merchant accounts and their services act as the middle man between the bank that you are affiliated with to the payment gateway. So here is the simple step-by-step process of what happens through a standard online transaction.
1. Product ordered from a website
2. Payment gateway initiated
3. Money moved to seller account
4. Money is held until verification is done
5. Once confirmed funds are sent to the sellers bank account
3 helpful tips for choosing a trustworthy Payment Gateway:
1. Does it have a good review and is it PCI compliant. This just means that there is a regulatory service that checks over the system for being on par or on industry standards.
This is usually audited by any third-party sources. All of this is to ensure the credibility of the service so the customer can sleep easy and be comfortable with making the purchase knowing that it is being regulated by an official auditory company.
2. Good customer support. This is another topic that is not talked about a lot. Customer support of various banks and online banks is a necessity. We live in the era of online buying, and it wouldn't be possible to acquire recognition without customer help and support at hand.
There are a lot of services that give a 24/7 service, which is great from the buyers perspective. another is that some services will give a text message of suspicious transactions being done on your account, which allows you as the buyer to freeze your account.
3. Finally, it is of great importance that you choose the right third-party solution to integrate into your online platform, as this will provide trust between the seller and the buyer. Compatibility is another factor to take into consideration as not all countries accept mainstream services, so its good to keep a lot of options available, especially if your selling worldwide.
Payment gateways are not only designed to collect the monies from your sales, but they also offer an array of security integrations and features.
Many of them which will help you ward off fraudsters! In the end, they will make your eCommerce business hassle-free and less stressful, which will ultimately be more of a pleasant experience for both you and your customers.
This content is accurate and true to the best of the author’s knowledge and is not meant to substitute for formal and individualized advice from a qualified professional.
© 2022 Temoor Dar