A payment platform that supports financial processes, such as settlements, account balances, and payout features offers increased value for your business. Connect your company to a payment processor through a payment gateway, which makes your ecommerce website’s checkout process run smoothly.
A payment gateway is what keeps the payments ecosystem running smoothly by allowing consumers and companies to make online payments. You don’t need to be a payment gateway specialist to be an online merchant, but it’s worth knowing the basics of how an online payment moves from your consumer to your bank account.
What Is A Payment Gateway?
A payment gateway is a merchant service that allows ecommerce sites and traditional in store businesses to accept credit card payments.
Payment gateways are able to achieve this with just a few steps;
- Encryption– A payment gateway will encrypt data for exclusive usage between the seller and the buyer between the user’s browser and the retailer’s server.
- Request- When a payment processor receives approval from a credit card company or financial institution to proceed with a transaction.
- Fulfillment- Once the payment gateway has received authorization, the website and user interface can move on to the next step.
Types Of Payment Gateways
There are typically three types of payment gateways.
A “Redirect” occurs when a gateway sends a customer to a payment page to complete the transaction.
For the store, this has the advantage of being simple. A small business can use a Redirect gateway to combine the convenience and security of a larger platform, but the procedure also means the merchant has less control – and clients have to go through a second step.
2. Checkout on-site, Payment off-site
The front-end checkout will take place on your site, while the payment gateway processor will handle the payment processing.
There are several advantages to handling your payments this way, similar to redirected payment gateways, including simplicity. However, as originally said, you will not be able to control the complete user experience through the payment gateway.
3. On-site payments
Larger companies are more likely to employ on-site payments that are handled entirely on their own servers. Your system handles the checkout and payment processing on behalf of the customer.
You will have more control, but also more responsibility, now that the benefits have been reversed. This is especially true for any retailer with a significant sales volume. It’s critical to understand your options as well as your duties when handling payments on-site.
With a greater understanding of price, function, and gateway security, your company will be able to select the best choice for your needs and provide clients with a new degree of protection while making an online transaction.
Once you know what to anticipate from a payment gateway, you can focus on how to choose your preferred payment gateway. Focus on security and select a provider so that you will not have any trouble with an integrated payment gateway that makes your shopping baskets convenient to use.