Whether you run an SME or a large organization, at some point in time, you must have given a thought about owning a dedicated online store for your business. But having a store is not enough. You need to pick a payment gateway for your store. This is especially to ensure that every transaction remains secure and meets customer requirements in every way. However, not everyone is acquainted with the concept of payment gateway.
If you are unaware of what a payment gateway is and how it can be invaluable to your online business, then you are not alone. Many entrepreneurs do not have a clear idea of payment gateway and how it can be integrated into their online store. Payment gateway integration is invaluable and is a must for all online stores.
So, that is what we are going to learn from this blog.
Have a Brief Insight into Payment Gateway Integration
So, what is payment gateway integration? For, understanding that we will first have to know what actually a payment gateway is?
Online transactions require a service that approves the payments. This is what a payment gateway is used for. When you make a payment online, the gateway sends the card information, securely, to the payment network, and returns the transaction details to the website after processing. The sensitive details of the debit or credit card remain strictly between the customer and the seller. And, for that purpose, the gateway encrypts the card details.
So, for any store to deal with transactions, a payment gateway must be integrated into their websites. It may be also considered as an online version of a real point of sale terminal that you find in the brick and mortar stores. And, this gateway can and must be integrated to your website if you want a smooth dealing of transactions and payments, all made online.
How does a Payment Gateway Work?
Processing credit or debit card information of the customers who drop to your e-Commerce store is the main function of a payment gateway. Immediately after a customer places an order, the browser sends the card details to the merchant’s web server, via an SSL connection. Here it won’t be out of place to mention who a merchant is. A merchant is a seller. If you are the seller, then you are the merchant.
Next, from the merchant’s web server, these details are sent to a gateway, again using an encrypted SSL connection. Now, the details are sent to a payment processor, which in turn sends them to the card association.
Post that, an authorization request is received by the bank that had issued the card. It analyzes the details and sends a response code consisting of information about whether the transaction is approved or failed, back to the payment processor. The payment processor, now, sends the response code to the gateway, from where it is forwarded to the website. Lastly, the website displays a relevant message to the customer. The whole process, though sounding a bit complex, however, takes only 3-4 seconds to complete.
Why Your Business Needs Payment Gateway Integration?
The importance of a correct payment gateway, integrated to your online store, can’t be overlooked. Without the correct payment gateway, a number of problems can and do occur. For example, there is a possibility of high bounce rates because customers aren’t sure that your site can be trusted. The customers can also abandon the cart if the buying process is long and complicated. Besides, Customers can also be a victim of frauds because of no security.
Despite all these factors, online sellers still provide facilities such as bank transfer or even cash on delivery. But, the focus should be on building a secure and fully-automated online store and payment gateway integration is invaluable to that end.
Importance of Payment Gateways:
As mentioned, payment gateways are much important for your online store or e-Commerce business and can be integrated into your website quickly and easily.
The payment gateway acts as an intermediate and makes sure that customer data is encrypted and thus secure. This, in turn, helps prevent or reduce the severity and frequency of frauds in an e-Commerce business.
Setting a payment gateway up is also easy for a merchant already owning an account. Apart from that, it also requires little maintenance.
Nowadays, most of the online shoppers are already familiar with making payments online via a gateway. So, setting that up for your online store means that you are actually being at par with the current technology being used.
You can use a payment gateway to your advantage. Because with the correct gateway, customers do not need to navigate to new pages and can make the payments directly from your site. In addition, merchants can even customize their check out pages, which is an added advantage for them.
Payment Gateway Integration: Bottomline
Payment gateways can protect your e-Commerce business from the hands of frauds and hackers. With the right payment gateway chosen for your business, customers too are confident about your site and trust about it. However, while choosing a gateway, you must look for whether the gateway is PCI-compliant and ask for the SSL-certificate. This is to make sure that the gateway is indeed secure and you as an online business owner can trust them.
Above all, when you choose a gateway, make sure to note what exactly are the services provided by them. For example, what would be the cost and business opportunities with the payment gateway that you choose? Frauds and hackers are never asleep and neither should you. Choose the correct payment gateway today and secure your online business. Because if you want a long term success for your e-Commerce business, the right payment gateway is invaluable.
- Is there a fee for payment gateway?
Yes, there is. A certain amount is claimed by the gateway providers per transaction. Generally, the transaction fees lessen with the number of sales increasing.
- How many types of payment gateways are there?
There are mainly four types of payments gateways available for any online store. They are hosted, self-hosted, API hosted and local bank integration.