Credit Card Payment Gateway
A payment gateway is a technology that allows merchants to accept debit and credit card purchases from customers. A credit card payment gateway is a point of connection within the payment process. It connects the shopping cart or virtual terminal to the next point in the payment process. Gateways connect businesses to issuing banks, and credit card networks; they act as a middleman between the business and the customer. They provide access to major payment processing platforms.
Why Is A Payment Gateway Required?
Payment gateways are necessary to ensure the safety of your customers’ credit card information. If you store credit card data on your servers, it increases your risk of being hacked and losing that information, which could result in identity theft or fraud for your customers. A payment gateway acts as a middleman between you and the banks. It allows you to send the credit card information to the bank without storing it on your servers. The payment gateway also ensures that transactions are verified and valid before allowing them to occur, protecting you and your customers from fraud.
Payment Gateway Vs Payment Processor
A payment gateway collects the customer’s information (credit and debit card details) for payment while a payment processor uses the information collected to complete the payment between the customer’s bank and business merchant account.
Payment Gateway Vs Payment Aggregator
A payment gateway is an intermediary while a payment aggregator is a platform where the payment gateway processes the transactions made.
A merchant account is an account that is essential for accepting credit/debit cards and online payments. These accounts can be issued by payment gateways or acquiring banks and they allow quick and safe transfer of funds from customers to businesses.
A payment gateway collects the money from customer transactions and deposits them in the merchant account. The merchant account plays a major role when customers provide card details. This account receives funds and informs the payment gateway and then later transfers the money into your business account.
How Does A Credit Card Payment Gateway Work
- Once a customer is done selecting the goods/services they would like to purchase, they proceed to the payment page of the website. Different payment gateways offer different checkout page options.
- The customer enters the credit or debit card details which are securely passed onto the gateway.
- Before sending the information to the acquirer, the gateway performs safety checks and encrypts the data.
- The acquirer sends the data to the card schemes.
- The card schemes carry out fraud checks before either approving or declining the transaction.
- The transaction is approved and the payment message is sent to the acquirer.
- The approval message is sent to the payment gateway which sends it to the merchant.
- The funds are reserved pending settlement.
- Settlement can take between 2-5 days depending on the payment gateway service provider.
Payment Gateway Charges
Different payment gateways charge different prices for their credit card machines. Other than credit card machines, they also charge for
- Transactions conducted
- Initial set-up
- Monthly fees
- Chargeback fees
- Membership fees
- Batch fees
- PCI-compliance fee
- Annual maintenance charges
- Merchant Discount Rate(MDR)
- Integration charges
The above charges are incurred by the business. Transferring funds to your business account via UPI or IMPS can help you avoid payment gateway charges.
Factors To Consider When Choosing A Payment Gateway
- Cost: pick a service provider that you can afford.
- Recurring billing: for businesses that offer subscriptions, choosing a service provider that supports recurring payments is key.
- Holding time for the funds: small businesses and startups should pick payment gateways that don’t hold funds for long.
- Security: your customers’ data should be safe. Third parties should not be able to access it.
- Mobile payment: this is becoming increasingly popular. Choosing a gateway that supports mobile payments will increase your sales.
- Ease of integration: the credit card payment gateway you choose should easily integrate with your website.
- Transaction limits: if your business has a high volume of transactions choose a payment gateway that can handle that and vice versa.
- Currency support: the ability to accept multiple currencies is mandatory especially for e-commerce businesses.
- Types of payment methods allowed: a wide variety of payment methods will make the payment process flexible for you and your clients.
- Customer service: 24/7 customer service should be available Incase you encounter any hitches.
How Important Is A Payment Gateway In Ecommerce?
A good payment gateway is one of the most critical features of any eCommerce website. It is like a digital credit card processor in a digital store. A payment gateway helps transfer information from the payment portal to the bank. It is also responsible for the security of the transaction data and client information as they purchase from your online business.
You can have a friendly, informative website that is easy to navigate, with high-quality products, and even offer free shipping, but if you need a quality payment gateway, it’s all for not. A good payment gateway will allow customers to enter their information and complete their orders quickly; it reduces errors that could be made when an order is placed and provides a way for you to process payments quickly.
The best payment gateways are very secure and provide the merchant with detailed reports on their sales, including how many orders were placed each week or month and how much money was earned in each period. The reports can analyze sales over time and determine where future growth may come from. A good payment gateway will also provide detailed reports on what items are selling the most, which helps the merchant determine where they should focus their efforts in advertising and marketing.
Why Use A Payment Gateway In An E-Commerce Business?
- It reduces the chances of credit card fraud occurring.
- A payment gateway processes credit and debit card payments and other forms of online payment.
- You can customize the checkout page of your payment gateway.
- Customers are able to stay within the site even when conducting transactions.
- As long as you have an account and website, setting up a payment gateway is easy.
- It acts as a go-between for you and your customer and also ensures that their data is secure.
Advantages Of A Payment Gateway
- Provides secure transactions.
- Equipped with chargeback prevention.
- Protection against fraud.
- Enables recurring billing for businesses that offer subscriptions.
- Allows a number of payment options for clients to pick from.
- Easily integrates with your shopping cart and website.
- Payment processing is faster.
- Safer checkout experience.
- There is an option to customize the payment gateway to suit your business needs.
- Most have the ability to store transactions even when the system is offline.
- The customer has full control over the payment process; they can choose to terminate the same transaction at any time
- Increases business revenue by offering a variety of payment options to customers.
Get A Credit Card Payment Gateway Today!
Speed, convenience, a variety of payment options, and revenue increase are some of the benefits of using a credit card payment gateway. Sign up for one today and collect funds from your debit and credit sales securely and with ease.