Choosing a payment gateway and accepting online payments

An online payment gateway connects your store and your merchant service account, and facilitates the processing of the payment transaction between the varied parties involved, including your bank and therefore the card issuer’s bank. Consider it the digital version of a POS card swipe machine utilized in brick-and-mortar stores.

Payment gateways also can offer greater control over security rules and customization; they'll be far better fit large businesses needing a more tailored solution. One thing to notice about employing a merchant account/payment gateway combo is that you’ll get to apply for both, usually filling out forms and providing some financial information. It can take a couple of days to process your application so you won't be able to jump right into it. After both are approved, you’ll get to connect your account to the gateway then your gateway to your store.

What is a Payment Gateway?

The definition of a payment gateway is that a technology that captures and delivers data and payment from the customer to the employer, the manager of the firm the person-in-charge. A payment gateway in customers' card securely and make sure that the payment is available on the card at that moment. It encrypts sensitive master card details, ensuring that information is passed securely from the customer to the acquiring bank, via the merchant.

Need for Payment Gateway

The customer's card can't be physically swiped on a POS terminal, as you'd normally do if you processed the payment during a brick-and-mortar shop. Therefore, you'll only believe the cardboard information that the customer is entering on the payment page. But, how are you able to make certain that the cardboard the customer is using is their card? In card-not-present transactions, the fraud risk is significantly higher, and this is often where a payment gateway does its magic.

A payment gateway is the gatekeeper of your customer’s payment data. For online merchants, a payment gateway relays the knowledge from you, the merchant, to the acquirer and therefore the issuing bank using encoding to stay unwanted threats far away from the sensitive card data.

How to choose the simplest payment gateway for your business

Cost

The most important thing you would like to think about while choosing a payment gateway is the total cost that you’ll incur. The prices involved in using payment gateway are available three types: set-up fee, monthly fee, and transaction fee.

Hosted vs. non-hosted

A payment gateway can either be hosted off-site (the customer is taken to the payment processor’s website for them to enter their details) or non-hosted (the customer are going to be ready to enter the small print without leaving your website).

Each of those different modes of hosting payment gateways has its own pros and cons. One advantage of using hosted gateways is that they reduce the danger of storing sensitive information on your own site. Although this is often an enormous advantage, the downside is that redirecting your customers to a different site adds another step to the payment process, making it longer than usual. If customers undergo this lengthy process and therefore the transaction fails thanks to a glitch or other error, they'll become frustrated and not try again. For this reason, businesses with high transaction values like better to have non-hosted payment gateways integrated with their stores.

Security

There are tools that the gateways themselves implement, although many plan to hire third-party security services. Among the best-known security requirements are SSL security certificates, Address Verification Systems (AVS), also as security regulations enforced by the Payment Card Industry (PCI).

SSL (Secure Socket Layer) protocols allow you to know when a server is secured. One of the most contributions of this technology is that the encryption of transaction data between the three parties (banks, card issuer and online store), thus preventing any unwanted information to finish up within the wrong hands. Easy thanks to identifying a secure server are by checking that the URL starts with https:// and recognizing the standard closed padlock within the browser.

The function of an Address Verification System AVS is to ask the customer for the billing address to which the cardboard is linked. It’s an anti-fraud mechanism that makes it possible to authenticate the identity of the customer corroborating that he's really the owner of the cardboard.

Custom resources

Offering personalized reports and graphics that allow a far better understanding of the commercial operation in its entirety is another value. All the knowledge you're ready to obtain through payments is often used with the goal of creating your business grow. A valuable asset to possess here is an intuitive dashboard that gives accurate information about transactions. Stripe's dashboard may be a good example; any user with basic knowledge can get what he needs without complications

An online payment gateway connects your store and your merchant service account and facilitates the processing of the payment transaction between the various parties involved, including your bank and the card issuer’s bank. Think of it as the digital version of a POS card swipe machine used in brick-and-mortar stores.

Payment gateways can also offer greater control over security rules and customization; they may be a better fit for large businesses needing a more tailored solution. One thing to note about using a merchant account/payment gateway combo is that you’ll need to apply for both, usually filling out forms and providing some financial information. Processing your applications can take a few days, so you won’t be able to jump right into accepting payments. After both have been approved, you’ll need to connect your account to the gateway and then your gateway to your store. Usually this involves configuring your store with API keys, shared secrets and tokens.

What is a payment gateway?

The definition of a payment gateway is the technology that captures and transfers payment data from the customer to the acquirer and then transfers the payment acceptance or decline back to the customer. A payment gateway validates the customer’s card details securely, ensures the funds are available and eventually enables merchants to get paid. It acts as an interface between a merchant’s website and its acquirer. It encrypts sensitive credit card details, ensuring that information is passed securely from the customer to the acquiring bank, via the merchant.

Need for payment gateway

The customer's card cannot be physically swiped on a POS terminal, as you would normally do if you processed the payment in a brick-and-mortar shop. Therefore, you can only rely on the card information that the customer is entering on the payment page. But, how can you be sure that the card the customer is using is their card? In card-not-present transactions, the fraud risk is significantly higher, and this is where a payment gateway does its magic.

A payment gateway is the gatekeeper of your customer’s payment data. For online merchants, a payment gateway relays the information from you, the merchant, to the acquirer and the issuing bank using data encryption to keep unwanted threats away from the sensitive card data. 

How to choose the best payment gateway for your business

Cost

The most important thing you need to consider while choosing a payment gateway is the total cost that you’ll incur. The costs involved in using payment gateway come in three types: set-up fee, monthly fee, and transaction fee.

Hosted vs. non-hosted

A payment gateway can either be hosted off-site (the customer is taken to the payment processor’s website for them to enter their details) or non-hosted (the customer will be able to enter the details without leaving your website).

Each of these different modes of hosting payment gateways has its own pros and cons. One benefit of using hosted gateways is that they reduce the risk of storing sensitive information on your own site. Although this is a huge advantage, the downside is that redirecting your customers to another site adds another step to the payment process, making it longer than usual. If customers go through this lengthy process and the transaction fails due to a glitch or other error, they may become frustrated and not try again. For this reason, businesses with high transaction values prefer to have non-hosted payment gateways integrated with their stores.

Security

There are tools that the gateways themselves implement, although many decide to hire third-party security services. Among the best-known security requirements are SSL security certificates, Address Verification Systems (AVS), as well as security regulations enforced by the Payment Card Industry (PCI).

SSL (Secure Socket Layer) protocols let you know when a server is secured. One of the main contributions of this technology is the encryption of transaction data between the three parties (banks, card issuer and online store), thus preventing any unwanted information to end up in the wrong hands. A simple way to identify a secure server is by checking that the URL starts with https:// and recognizing the typical closed padlock in the browser.

The function of an Address Verification System (AVS) is to ask the buyer for the billing address to which the card is linked. It is an anti-fraud mechanism that makes it possible to authenticate the identity of the buyer corroborating that he is really the owner of the card.

Custom resources

Offering personalized reports and graphics that allow a better understanding of the commercial operation in its entirety is an added value. For gateway providers, it is essential to know the payment methods most used by consumers, what currencies and credit cards they use. All the information you are able to obtain through payments can be used with the goal of making your business grow. A valuable asset to have here is an intuitive dashboard that provides accurate information about transactions. Stripe's dashboard is a good example; any user with basic knowledge can get what he needs without complications.

Integration with other systems

Finally, it’s worth considering if your payment gateway can connect with your invoicing or accounting software so that when an online payment takes place, the corresponding invoice will update automatically in your bookkeeping system. This will save you a lot of time and effort because you won’t have to keep track of payments and then manually update that payment information in your accounting system.