Online payments can be conducted in a variety of methods, but the vast majority of online financial transactions are carried out through secure payment gateways. Payment gateways permit various financial transactions to take place in online stores to ensure the safety of both retailers and online purchasers through eCommerce service providers.
What Exactly Is A Payment Gateway?
A payment gateway is a merchant service that allows eCommerce sites and traditional retail establishments to accept credit card payments. By following these steps, most payment gateways provide quick results:
Encryption: Between the user’s browser and the server of the retailer, a payment gateway will encrypt data for exclusive use between the seller and buyer.
Request: The payment processor receives approval from a credit card company or financial institution to proceed with a transaction.
Fulfilment: Once the payment gateway has received authorization, the website and user interface can move on to the next step.
Three Types Of Payment Gateways
1. Redirects: A “Redirect” occurs when the gateway sends a customer to a payment page to complete the transaction. A small business can use a redirect-gateway to combine the convenience and security of a larger platform, but the procedure also means the merchant has less control – and clients have to go through a second step.
2. Checkout On-Site, Payment Off-Site: The front-end checkout for a payment gateway will take place on your site, but the payment processing will take place on the payment gateway’s back end. There are several advantages to handling your payments this way, similar to redirected payment gateways, one of which is simplicity. However, you will not be able to control the complete user experience through the payment gateway. You’ll be at the mercy of the off-site payment gateway’s quality and eccentricities.
3. On-Site Payments: Larger companies are more likely to employ on-site payments that are handled entirely on their own servers. Your system handles the checkout and payment processing on behalf of the customer. You’ll have more control, but also more responsibility.
Why You May Need To Consider Using A Secure Payment Gateway
Once you know what to anticipate from a payment gateway, you can focus on how to choose your preferred payment gateway. Ask the following questions to make sure you’re working with a safe payment gateway:
1. What payments do your customers use?
One of the most essential concerns you should be aware of is what payment methods your clients use already. By doing so, there would be fewer hassles and security hazards once you stack your payment gateways and provide a payment type they can utilize.
2. What is the fee of the payment gateway?
Ecommerce fraud can have a significant effect on the business. That implies that if the cheaper costs of a payment gateway are surpassed by the money spent on new security concerns and fraud detection, the investment may not be worthwhile.
3. How secure is their encryption?
The Payment Card Industry Data Security Standard (PCI DSS) is a set of guidelines designed to ensure the security of electronic transactions. Before you commit to any gateway, double-check that it complies with PCI standards. These are guidelines established to safeguard client data and financial information.
4. How well-known are they?
In order to avoid cart abandonment ensure that the payment gateways you use are secured. If more than a quarter of your consumers wish to see visible security marks during checkout, you’ll need to employ a secure payment gateway.
With a greater understanding of price, function, and gateway security, your company will be able to select the best choice for your needs and provide clients with a new degree of protection while making an online transaction. OpenPayd helps your business understand your client’s needs and provide them with the best possible service. Get in touch with us today!