Payment Gateways are software and servers that transmit Transaction information to Acquiring Banks and responses from Issuing Banks (such as whether a transaction is approved or declined). Essentially, Payment Gateways facilitate communication within banks. Payment Gateways means of authorizing credit card or other forms of electronic payments. These e-payments can be made online or offline via a website or at an actual brick and mortar retail establishment. Payment gateways help to protect sensitive information like credit card numbers and other account information by encrypting the data they transmit to merchants and payment processors.
First things first, we want to congratulate you for taking your business online. Welcome to the world where you can reach millions of potential customers faster, sell 24*7, manage your business from anywhere in the world, deliver goods faster and much more. Accepting payments online is a critical aspect for online businesses and choosing the right payment partner is not easy given the plethora of options available in the online world.
To start off with, you need to understand how payment gateway works – Simply put, it is the entity that allows you to accept payments from you customers in a secure manner. When a customer clicks ‘Pay’, a payment gateway is the entity that handles all the ensuing steps and:
1. Communicates with the customer’s bank, card schemes & other entities involved
2. Sends verification message to the customer
3. Most importantly, gets money settled into your bank account paid!
Technology and Type of Integration
API is at the heart of robust and reliable payment system. Easy to integrate API makes your developers super happy. The kind of integration required varies with every business. Is your business app only? Are you looking for website integration? Don’t want the hassles of PCI DSS and other compliance? While you may be using only one solution right now say mobile checkout right now, choose the one which can support your future integration needs too. Evaluate the benefits of hosted vs. embedded integration, SDK integration and more. This is most essential for giving the best payment experience to your customers.
3. Security and Safety
Does the Ideal Payment Gateway Exist?
There may not be a payment gateway which fits into requirements of every online business. However, choose the one which is in sync with your business model, location, product and future plans. The best getaway is a combination of many factors: technology, user experience, innovation, security. Consider all these aspects so that your payment gateway does not hang up on you or your customers.