Payment technology is a technology that can seizure and transfer the payment data from the customer to the acquirer and then deportation the payment acceptance or decline back to the customer. Payment gateway can legitimize the customer’s card details securely, ensures the funds are available and eventually enables the merchants to get paid. In other words, payment gateway acts as annexation between a merchant and its acquirer. It can encrypt the sensitive credit card details ensuring that information is passed securely from the customer to the acquiring bank via the payment merchant.
Why do we need to have a Payment Gateway?
As the payment gateway systems can be seen as the digital equivalent to the credit card payment processor that you can devise in the digital online e-commerce stores. This makes the payment gateway compelling to the online retail environment. As, you go over numerous platforms of this sort available. So, while picking up a payment gateway processor, it is essential to escalate on whether it ensures the consistent and straightforward transactions, relates to quality principles and strategies and ties down the sensitive info so as to battle the payment processing transaction fraud. A payment gateway processor is called to approve the payment transactions among you and your clients. In this way, on the off chance that you possess an e-commerce site, which infers that if you are preparing an online payment, you should have a payment gateway.
What is the role of the Payment Gateway?
Payment gateway services are the utmost for taking care of all the credit card online transactions. Payment gateway processor is a comparable procedure as a point of service (POS) device does when you pay for the petroleum. The primary role of the payment gateway is to bolster the online transaction between you and your clients. As, without a payment gateway’s approval, the transaction procedure will not complete and you would not get the cash. As the payment processor can dissect and can move the payment transaction data and can affirm the payment transaction of funds among purchasers and merchants.
How Payment Gateway can work?
As a client can puts in a request from an online store, the internet payment gateway processor can plays out a few undertaking to affirm the payment processing transaction such as –
. Encryption – The web browser can clamber the information which is to be sent among it and the seller’s web server. At that point, the payment gateway will send the transaction data to the payment processor, which is used by the merchants of the acquiring bank.
. Authorization Request – The payment processor will automatically send the payment transaction data to the bank where the card is related to. The credit card giving the bank will see the authorization request and it might favor or delay the payment transaction.
. Filling the order – Payment processor will advance the relating of the merchant and the client to the payment gateway. As when the payment gateway gets this reaction, it will impart it to the website or the interface to refine the online payments.
Which are the different types of payment gateways?
You can assimilate the payment gateway either internally or externally to your e-commerce online store. One of the decisive points on which one can choose a payment gateway is through the type of the payment gateway integration. Based on the way how it is connected, the payments gateways can be classified into following categories –
. Hosted Payment Gateways
Hosted payment gateways use third party payment services such as Payment Services Provider (PSP) to outright the payment services. These payment gateways can direct your customer away from your checkout page. As when the customer clicks on the gateway link, they will be redirected to the payment service provider page where the customer fills in his/her payment details and after paying is redirected back to the website so as to complete the checkout process. One of the most well-known examples of the hosted payment gateway is PayPal.
Pros
. Offer secure payment processing transactions
. Easy to set-up and are easily customizable
Cons
. As the payment gateway is external, so the merchant are unable to control the whole user experience
. Self-hosted Payment Gateways
In this payment gateway, no third-party services are used to provide the payment service. As, instead of the third-party services, payment details are collected directly from the customer within the merchant’s website. After the details are collected, the collected data is sent to the payment gateway’s URL. This type of e-commerce payment gateway integration can allow the e-commerce online store to debit the payment from the customer. After the payment is made by the customers, notification is sent to both the customers and e-commerce website owners. Some of the most well-known examples of the self-hosted payment gateway is QuickBooks Commerce B2B Payments and Shopify Payments.
Pros
. Offers a good user-experience
. Offers customizable flow of payment processing transaction
Cons
. Do not offer you any type of technical assistance
. API Hosted Payment Gateways
API hosted payment gateways use the API or HTTP queries services. E-commerce websites can handle the checkout process and can oversight the transaction during the payment process. With this, the customers can enter their credit or debit card details directly on the merchant checkout page and the payment is processed using an API or HTTPs queries to make the payment.
Pros
. Offers you full control over the customer experience and UI of the payment processing transaction.
. Can be used with the mobile phone devices, tablets etc.
Cons
. Merchants are responsible for the PCI DSS compliance and purchasing SSL certification
. Local Bank Integration
Local bank integration gateway can redirect the customer to the payment gateway’s website where the customers have to enter their payment processing details and contact details. Once the payment is done, the customer is redirected back to the merchant website with payment notification data sent upon the redirection.
Pros
. Quick and easy to set up
Cons
. Does not enable returns or recurring payments, so ideal not suitable for the wholesalers or retailers.
Why choose us?
My Green Merchant Services is not only limited to the methods as mentioned above, but are also customizable according to your needs. As we know that finding the right online payment processing partner is a key decision for your business success, which is why we have designed our unified payment platform with a focus on the customer experience.
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