A payment gateways is what allows you to receive money transfers. Other elements of your website direct the user to make a purchase, and if this last step doesn’t work, your entire business is in trouble.
In this article, you will find everything you need to know about payment gateways so that you can select the most proper one for your online store, be it Paypal, Stripe, or other existing alternatives.
The payment gateway acts as an in-between between your bank and your customer’s card bank. They are what allow your company to receive payments online. For this reason, payment gateways are essential for any small business that has its catalog of products or services.
Payment gateways exist because it is proscribed to send banking information directly from a website (for example, your online business) to a payment processor (in this case, the bank of your business account). Payment gateways pass your customer’s credit card information to the payment processor and notify them if the transaction has been approved.
The payment gateway acts as an in-between between your bank and your customer’s card bank.
To understand how payment gateways work, let’s start on the client-side. The user of your online store adds the products that he wants to buy to the cart. The following thing you need to do is enter your debit or credit card information, which includes your card number, expiration date, card name, and security code.
As I explained earlier, banks do not allow this information to be sent directly from their website to an acquiring bank; that is, the bank of your merchant account. This is where payment gateways come in: customers enter their details into the gateway you have integrated into your website. The payment gateway will control encrypting the data and sending it securely to the acquiring bank.
The payment card service sends the information to the issuing bank (that is, the customer’s bank). It performs security and fraud checks and finally authorizes the transaction if it is valid.
The confirmation or rejection of the transaction is sent back to the card service and the acquiring bank, sending this information to the payment gateway. The payment gateway, as applicable, will display a transaction confirmation page or ask the buyer to try a different payment method.
This process has many steps, but it happens instantly, and a good payment gateway should be able to show the result of a transaction in just a few seconds.
There are some fundamentals that you should study when choosing a payment gateway. While their role seems very specific, not everyone works in the same way or has the same capabilities.
Payment gateways are an essential component in the sales flow of any online store. A well-chosen payment gateway can increase your conversion rates and attract more loyal customers.
But choosing the right payment gateway is only the first step. You should integrate it into your website and customize it to your needs to get the most out of it. This means that it is easy to use, works without errors, and blends well with web design.
In the present scenario, there is a growing demand for skilled product owners in the… Read More
Professional SEO: Did you know that Google accounted for more than 70% of desktop search… Read More