Updated time: Aug 21, 2020 , 07:36 (UTC+03:00)
The business world is changing in the digital era and making a huge impact on how businesses work online. An online payment gateway is one of the important factors that maintain the payments ecosystem, as it not only enables online payments for buyers and sellers but also a useful tool to raise more sales. If you are an online merchant, you don’t need to become an expert in payment gateway, but having a deeper understanding of online payment will help you make a better decision on what online payment gateway to choose and further business plans.
This article will give a detailed explanation of what is an online payment gateway? How does it work? Why an online merchant needs one and how to choose the best online payment gateway for your business.
Before jumping into further details, there are some important “terms” that you need to understand. These terms are the key players which involved most of the time in the payment process:
The basic definition of an online payment gateway is the software that payment service providers use to transfer payments for online transactions. This technology processes and transfers payment data from the customer to the acquiring bank and transfers the payment acceptance or decline back to the customer. A payment gateway approves the card information of the customer securely, guarantees the funds are accessible, and eventually enables merchants to get paid.
In other words, the online payment gateway works as a middleman between the seller and buyer, ensuring the quick, simple, and secure transaction process. An online payment gateway can streamline how a merchant's site integrates with the platform and necessary program.
As a business owner, you might be thinking about why your business needs a suitable online payment gateway if it is just a “middle man”? To answer this question, we have to understand that an online payment gateway is a transaction-without-card. The buyer’s card cannot be swiped on POS terminals as the ordinary way if the purchasing process happened somewhere like the brick stores. For that reason, you can only rely on the card data that customers enter on the payment page. In this case, how might you be certain that the card customer is using is their own card? A transaction-without-card makes the fraud risk significantly higher, and this is the chance for the online payment gateway to get the job done.
So what would happen if we didn't have the existence of an online payment gateway? Fraudsters would have easier access to your sensitive data, exposing your business to fraud and chargebacks. Furthermore, fraudsters would likewise discover extra approaches to start illegitimate transactions, leaving you even more exposed to fraud and damaging your brand public image.
The online payment gateway is like a gatekeeper of your business and your customers. Aside from the protected encryption data, online payment gateways also protect merchants from expired cards, closed accounts, insufficient funds, or exceeding credit card limits.
Also read: Payment gateway for ecommerce business
Now that you’ve understood why merchants need an online payment gateway. So let’s process to the next step and figure out how an online payment gateway works:
After having a deeper understanding of what is an online payment gateway and how it works, we highly recommend PayCEC online payment gateway. PayCEC is one of the TOP 3 online payment gateways at the moment that offers a variety of payment methods, different currencies, newest technologies of fraud protection and 24/7 customer support.
For more information, please visit: Online Payment Gateway