What are the Payment Gateways? & How to find the right one?

What are the Payment Gateways? & How to find the right one? | Best Payment Gateways in the world
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In the digitization era, online payments are a crucial element that aid users and organizations in quick monetary transactions. Whether it is a purchase, sale or even clearing dues of vendors, all it requires is a reliable payment system. Unlike, a little payment vulnerability can bring opportunities to the digital thieves (hackers). Consequently, it is one of the imperative decisions of choosing the correct payment gateway for your business.

It is integral to know your payment gateway quality that prevents cyber-attacks and creates required encryption layers between the buyer and the seller. An effective payment gateway system not only makes your transactions hack-proof, but it also supports quick web page load time.

So, how would you consider the best payment gateway for your eCommerce or online business that will bring high convenience and low risk with secure client data assurance?

Let’s understand about payment gateways in detail below:

Online Payment Gateways:

 

In simple terms, a payment gateway is a service used by the merchant that assists users to process payments using credit cards and other methods, for a purchase of a product or service online. These gateways act like a bridge that connects users’ purchases with the company’s sales without fail.

Key Characteristics:

  • Encryption: The system is so secure that even the retailer can’t trace the payment details of the users such as credit card number, CVV and other details. It develops a safety layer (encrypted data) between the user’s browser and the company’s server.
  • Authorization: All payments processed by payment gateways are safe and fast. The system already gets authorization requests from different credit card companies and financial groups. Hence, there is no chance of payment failure.
  • Confirmation: Once the payment is processed, it takes the users to the next step.

Type of Payment Gateways:

When we look into the payment gateways, we observe 3 main types of gateways systems:

1) Redirects:

In this type of payment system, a user gets shifted to a secure page from the existing eCommerce platform. The user can follow certain steps and make the payment; every payment step is managed at the payment gateway website. For instance, if you choose PayPal, the shoppers will redirect to the PayPal website once they process the payment from the merchant website/app.

By applying this technique, merchants use the payment gateway’s security and simplify the complete process. Nevertheless, it makes less control on the payment system from the merchant’s end.

2) Off-site payment:

It is another simplified method of managing payments using third-party payment systems. Similar to redirected payment gateways, users’ data is secure and controlled by the service provider.

In off-site payments, front-end checkout is considered on the merchant’s site, whereas the payment is processed at the service provider’s back-end.

Besides, the merchant won’t be able to control the whole payment transaction through the payment gateway.

3) On-site payment:

This payment method is a special payment system, fully controlled by the merchant from their own site/app; checkout till the payment processing. Consequently, more benefits are added to the merchant along with user data security responsibilities.

Generally, large-scale businesses use this payment gateway system for their business operations. 

Popular Payment Gateways:

 

All the above payment gateways are eminent as per specific functionalities and payment requirements; all are different from each other.

Moreover, implementing a payment gateway also means that we learn about it and accept its limitations.

For your convenience, we have listed some of the common limitations to the payment gateways below:

[A] They don’t accept all cards and payment methods:

Though there are different popular and widely used payment gateways, they still lack acceptance of all payment methods. They do mention on their platform about card types or payment methods that they accept but rarely talk about the exclusions.

It is intrinsic to know your targeted audience and the payment type that they will use. This will positively result in high sales conversions from the add-to-cart function.

[B] Consideration for international buyers:

Organizations dealing in manufacturing and wholesale business are mainly concerned about their international prospects/clients. If you are certainly looking to expand your business, a complete payment system keeps you on top of your competitor.

Manufacturers from China can specifically feel this. Businesses all around the world contact Chinese production houses but struggle when it comes to payment. Generally, they contact their bank and make the transfers from there. This experience results in delays in receiving payments and a slowdown in business operations.

[C] Uncertain security issues:

Everyone has an option to shop online, but still, people hesitate to put their card details on the net, even on popular online shopping sites. It doesn’t matter how strong the payment gateway we use, there are always some security concerns that we cannot ignore. Modern-day hackers are so skilful to take advantage of any of a system’s vulnerabilities. Some of the common cyber-attacks include:

  • Data breach
  • Malware
  • Other mobile payment concerns

Important Points To Look Out In Your Payment Gateway Partner:

  • HOW DO YOUR CUSTOMERS HANDLE PAYMENT?
  • PAYMENT GATEWAY FEE
  • SECURE PAYMENT ENCRYPTION
  • PAYMENT GATEWAY REPUTATION

Final Words:

If you are an online business or startup and looking to get an effective payment gateway that not only suits your client requirements but also benefits your business module, then we should implement the correct payment gateway type (from the three mentioned above). In addition, the system must hold multiple payment options (card, bank transfers etc.); this makes it more convenient for the users.

The process with easy-to-use payment steps with a constructive user-friendly design.

Related Read: Digital Transformation in Logistics: Benefits and Key Technologies

Grey Chain Technology: Let’s help you with the perfect payment gateway integration

We are a reputed web and mobile app development company in the US, helping businesses, nonprofits and startups with their various custom app development requirements. We have satisfied clients all over the world.

Our app developers understand the importance of each payment gateway and assist you with the perfect integration as per your business specification.

Be it an e-commerce or an online store, we can positively develop and integrate various indispensable online tools for your business.

Connect with our experts and consult your requirements.

Call us at +1 914 618 5010 (US) / +91 9667665464 (IND) or send us an email at sales@greychaindesign.com, our team will reach out to you shortly.

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Jassa Gossal