A payment gateway is a service that converts between a retailer’s account and a customer’s bank account. Instead of going through an e-commerce website for credit card processing, customers can enter their banking information into the system, get authorised by entering their PIN, and complete the purchase using only their debit or credit cards. Leveraging open banking principles and exploring revenue-based loan options can enhance this process, making it even more convenient for customers to shop from your site
In this article, you’ll learn “why payment gateway is important for your online business”. For instance, you won’t take payments from customers without a reliable one except those with a PayPal account. But with one in place, you can process payments across various platforms such as Apple Pay or Visa Checkout.
What are the advantages of using a payment gateway?
There are many advantages to using a payment gateway. First, it takes only 2 to 3 steps from the customer to complete the purchase process. Usually, customers compare several payment options and choose one that provides them with the most convenient service and is also secure. There is no need for users to know about or use their credit or debit card details when making purchases. Instead, it’s pretty easy for people who don’t have access to a credit or debit card to buy things online with just their bank account details entered into the system using a payment gateway.
Another advantage is that the Payment Gateway can be developed to integrate with devices such as Apple Pay. The “no-click” payment allows customers to make a relatively small purchase in a single click by using the TouchID on their mobile devices. In addition, payment gateways enable merchants to sell products and services from their websites, so they don’t need to worry about having separate credit card processing systems for different e-commerce platforms.
How do I choose a good payment gateway?
Here are some things you can consider when selecting a good payment gateway. First, it needs to be robust and secure because it processes sensitive information like credit card details. It also needs to have an extensive list of merchants or retailers that use it, so you don’t need to go through the trouble of convincing your customers to try out yet another payment gateway. Lastly, make sure that it is easy to integrate into your website and all other systems you use.
How does a payment gateway work?
The Payment Gateway is the system where you, as the seller, upload your product/service information shared with customers. When a customer decides to buy an item from your site and choose a payment method, they are directed to another page to enter their banking information for the transaction to be completed. And this includes their credit card details, email address and other data such as name, address and phone number. The system will then store the customer’s details and accept their payment which will be transferred to your bank account.
Why do I need to use a payment gateway?
You must use a payment gateway because it is an intermediary between the customer’s credit or debit card details, your online store, and the customer’s bank account. The payment gateway carries out several tasks, from verifying whether a customer has enough funds in their bank to enabling you to get paid through your bank account.