If you are a retailer and you do business online, what do you do? You can swipe your credit card through a point-of-sale device when you purchase gasoline, coffee, and donuts from your local convenience store. Your customers don’t have card-swiping devices on their PCs! If you want to process that information, then you must find a way to do so. For online retailers, that’s what a payment gateway does.
What is a Payment Gateway?
A payment gateway allows online merchants to accept credit card payments via the Internet, such as e-store owners or auction sellers. Banks describe it as “the technology needed to complete a payment transaction.” the process of authorizing credit involves checking that the cardholder has enough money to cover charges on their card. They hold the money for a while to prevent the buyer from spending the same money elsewhere before it gets transferred to the retailer’s merchant account.
A Payment Gateway is Not a Merchant Account?
There is a common misconception that merchant accounts and payment gateways are the same. The main function of merchant accounts is to act as a liaison between your business bank account and the payment gateway. Customers’ credit card is processed through your payment gateway when they order a product from your online business. Afterward, the money is transferred to a merchant account. The merchant account service transfers those newly captured funds to your business bank account.
3 Tips for Choosing a Payment Gateway
1. Does it comply with PCI? Usually, this means that the company’s security has been audited by a third party and has been approved to meet industry standards. With payment gateways storing all your customers’ credit card information (saving you the hassle), you can also rest easier at night knowing it’s safe and secure.
2. Support from the customer is good.
3. Lastly, the payment gateway you choose should be integrated with the third-party solutions you plan to implement. Your gateway must be compatible with various applications, such as storefront platforms and shopping carts.
Conclusion
Payment Gateways offer a variety of security features that can help you avoid becoming a victim of fraudulent orders, in addition to allowing you to collect funds from your sales. Both you and your customers will benefit from them in the long run—they’ll make running your eCommerce business less stressful. To know more, visit – Tycoonverse.