Often you will hear from someone that I have done online shopping, I bought these goods online or you must have been shopping online yourself. Do you know that when you buy something online, it has to be paid online as well.
For making online payments, the website or application has a payment gateway using which you can buy online using net banking or debit card and credit card.
There will be many of you who may not know what is the payment gateway and how it works. But you must know about it.
If you want to sell any goods online or start an online business, then you should also have complete information about the payment gateway.
Friends, in this article today, we are going to give you all the information related to the payment gateway, such as what is the payment gateway and how it works.
What is a payment gateway?
Payment gateway is a type of technology used by merchants to accept debit or credit card purchases from their customers.
It is a service that sends and processes the customer’s debit and credit card information from the website to the card payment network and then sends the information of the result of the transaction from the payment network to the website.
If you accept or want to accept debit or credit card payments on an online website or mobile device, your business (company) needs a payment gateway.
Why do we need a payment gateway and merchant account
To start accepting payments on your website, you need a merchant account and payment gateway.
This is the only way you can start accepting online payments on your website or application.
If you own an online business, all you need is a merchant account.
A merchant account is an agreement between a merchant and an acquiring bank on which a debit or credit card can process and accept payments.
Hopefully now you know why the payment gateway is important.
How Payment Gateways Work
A payment gateway allows you to connect your website to a payment processor.
Following are the basic steps that show how a specific payment gateway works.
Step 1: First the customer places his order and then presses the submit or checkout button on the website
Step 2: Once this happens, the website platform takes the customer to the payment gateway, where it gives all the relevant information about the debit or credit card they are using to pay.
The payment gateway then takes the user directly to the issuing bank’s page or a 3D secure page and asks them to authorize the transaction.
Step 3: Gateway authorizes card and electronic payment by encrypting sensitive data. Once the payment gateway gets the permission for the transaction, the bank checks whether the customer has sufficient balance in the account to make this transaction successful.
Step 4: The payment gateway sends the message to the merchant accordingly. If “Yes” comes as a response from the bank portal, the merchant wants a transaction from the bank
If the answer from the bank is “No”, the merchant later sends an error message to the customer and informs them of the problem with the debit or credit card or bank account.
Step 5: The bank settles the money with the payment gateway and the payment gateway in turn settles the money with the merchant
Once this process is completed, the customer receives a confirmation message to place the order.
Example of a Payment Gateway
By now you must know what is the payment gateway and why it is used. But the question will definitely be in your mind which payment gateway is available which can be used.
We are giving you an example of some payment gateways.
CCAvenue
PayUbiz
Razorpay
PayPal
And so on
All these top payment gateways which are used to get online payments from the website.
How a payment gateway keeps information secure (How a payment gateway keeps information secure)
The payment gateway is a very important terminal for accepting payments over the Internet.
In terms of security, the payment gateway ensures 100% user data security when transacting over the Internet, as well as 100% privacy of users’ personal information over the Internet through the payment gateway.
Payment Gateway uses SSL certificate from the most reliable and secure third party certificate authority (CA).
The SSL certificate encrypts the data that is transferred from the web browser to the web server when transacting online through a payment gateway.
The SSL certificate ensures financial data security to users with the most difficult encryption strength of 256 bit keys which enables the most difficult encryption and decryption algorithms to protect users’ information on the Internet.
In this way, the payment gateway provides security to the transaction and also keeps the data of the users safe.
Benefits of using a payment gateway
You understood about the payment gateway and now it is a matter of knowing what are the benefits of using the payment gateway.
- The use of payment gateway is known to be fast payment processing, which is very good for any business.
- You do not need to pay someone to process your transaction, and you do not need to pay to produce paper invoices and statements. You or an employee does not have to give themselves time
- Having an online payment portal ensures that your site is equipped to generate payments at all times. This allows your client to pay anywhere and anytime. It is helpful to your customers and guarantees consumer loyalty.
- An online payment framework is equipped to take care of continuous payment processes. It does not require additional support to work. It means that the cost of doing business is low as well as time is less, and you have more opportunity to focus on more urgent business matters.
- The ability to accept multiple types of payments immediately becomes available through the payment portal, due to which different debit cards and credit card customers have their addresses on your portal.
- By allowing users to buy goods and services online, you are able to allow them to pay for the goods on their own terms.
There are many more such benefits with the use of payment gateways.
Payment gateway is very beneficial for every online business as it saves both your money and time and also with it the use of your payment work can be maximized.
If you do business online, then you need to choose the best payment gateway which has good service and which takes minimum fee on every transaction from you.
If you are wondering how to choose a payment gateway, here we are going to tell you some ways that you will be able to choose a good payment gateway.
How to Find the Right Payment Gateway
If you are in the process of setting up an online store, at some point you will need to enable payment for your portal or application.
Accepting payment from your customers is not easy but it is not complicated either.
All you need to find the right payment gateway for your business
With the right payment gateway you can make it very easy for customers to pay for your products.
When choosing a payment gateway, you should pay attention to the following points.
Know the setup fee or transaction fee:
The setup fee and the transaction charge of each payment gateway are different, so you will have to pay a lot to know about them. Also compare the charges of different payment gateways.
Decide if you need automated billing assistance
If you need automatic billing assistance then you can take this option which will make your online transaction related work easy. You can also contact the payment gateway billing team for more information.
Do you serve foreign customers:
If you are thinking of giving the facility to foreign customers to buy and pay products from your portal, then you have to choose a payment gateway that accepts international transactions.
Have multiple payment gateway options:
If you want to run your business well and think of providing good facilities to the customer, then you need to have more than one payment gateway. Many times our payment gateway is not able to work, in such a situation, you can switch and continue the transaction from the other and there is no obstruction in the transaction.
Reputation of your payment gateway:
When you have received the information about the payment gateway and its charges also seem right to you, then you should also see its review.
That is, those who are using that gateway, what is their opinion about the service of that company. How are they feeling the company’s service.
By doing this, you will get the correct information of the company giving the gateway.
customer help:
When we start online business, it is not necessary to know everything, in such a situation, when you integrate payment gateway for online transaction, during that time you face many problems.
In such a situation, you need support.
Support of many payment gateway company is good and they help you from time to time through live chat and phone call.
So while taking the payment gateway, you should pay attention to the support team of the company that is providing the payment gateway and you will be able to get help if needed.
We have shared all the important tips with you, with the help of which you will be able to choose the right payment gateway. If you have any information which can help in making the right choice, then you must write in the comment.
The conclusion
In this article you will have got all the information related to the payment gateway. If you want to start online business, then you have the option of payment gateway. The payment gateway makes your payment work easy, as well as you do not need to have separate staff to take payment and no one needs to give any time for this work separately.
By using the gateway, you will be able to make the payment easier and increase your business even more because there is more transaction through it. By taking online payment, you will be able to save your customer and your precious time and you will be able to spend this time in moving your business forward.
Hopefully you must have received all the information related to the payment gateway, what is the payment gateway and how it works. If the information given is good, then share this article with your friends and help them to know it too.
