What is payment gateway?
A payment gateway is an e-commerce system that supports modern retail or other types of sales of products and services, over the Internet or at brick-and-mortar stores. Payment gateways helps authorize credit card payments in order to support point-of-sale systems.It simply helps in the processing of credit cards and ensures the payment is made. This acts like a connecting door, through which transactions can be done automatically from the customer to the retailer.
Payment gateways online have never been so convenient.They’ve also never been such an important target for hackers and scammers. Large companies relying on online payment processors may get hit the hardest.
If we look at the last few years, e-commerce websites and mobile applications have been gaining huge success; and, so are payment gateways. Making online payments for products and services on a website is no longer a great task for customers.
Here’s how online payment processing works:
- The customer picks up an item and make payment with card
- The merchant submits a transaction
- The payment gateway securely sends the transaction to the processor
- The processor verifies and approves the transaction
- The customer’s bank sends money to the processor
- The processor sends money to the merchant’s bank
- The processor sends the status of the transaction to the gateway – either approved or denied
- The merchant receives the message of approval or denial
- The merchant receives the money for the sold item
Here are few factors that affect big businesses :
Great Customer Experience:
The main thing any business looks for is delivering a great customer experience. There are a lot of customers that return and recommend a service demand more than just an average value. A vital part of that customer experience is the process of accepting payments. Declined transactions and long latency times for approvals can damage goodwill and reduce customers trust.To deliver a great customer experience requires reducing these false declinesand ensuring that customers can pay as they prefer.
There are several types of charges that can factor in when choosing your preferred gateway – sign up/service fees, processing fees , transaction fees etc,.There are some payment gateways require an upfront fee and/or a monthly flat fee to use, plus a transaction fee, usually a small percentage on each transaction. So look for a payment processor which suits your requirement. Who knows your business better than you?
How secure is the payment gateway:
The SSL certification of the provider builds a trustworthy image of your store for the customers. They should also handle fraud protection and support various tokenization techniques to prevent any security breach.
Security flaws :
Although a high-quality payment gateway should be secure, there are some security vulnerabilities you’ll have to keep note of:
- Data breaches: TLS encryption is what helps most payment gateways to handle the processing of data like card information, but once the data is on a server, that server remains a huge risk.
- Mobile payment issues: You might control much of the security at the transaction, but you still don’t control how many people have access to your customer’s mobile device.
- Malware: Malware has capability to read passwords and infiltrates user accounts can still send apparently-authentic transactions through secure payment gateways, even while the transaction itself is a fraud.
If you have a better knowledge of price, function, and gateway security, your business will be in the position to choose the right option for your business needs and add a new level of security that customers need when making a purchase online.For more clarity on payment gateways or if you require any kind of assistance, feel free to call us at+44 800 776 5988 or +1 845 215 4017.