Selecting a payment gateway is crucial for anyone wanting to setup and manage their e-commerce store. This is because it is the responsibility of the online vendor to make sure that every transaction made by the customers is safe and secure. In the absence of the appropriate payment gateway, the safety of online transactions cannot be guaranteed.
Simply out, payment gateway means an e-commerce service that processes, verifies and accepts or denies credit card processing or direct payments on behalf of the vendors by using a secured Internet connection. It helps in facilitating digital payments and also get approved by the bank of the issuer.
The payment gateway transfers the details regarding the payment between different payment portals and the bank or front-end processor. It makes use of special verification and encryption technologies to make sure the legitimacy of the transactions. This is because online shopping largely deals with anonymity and distance.
Payment gateway is not only required by e-commerce store owners, but any business that accepts online payments. It helps to lessen the severity and frequency of credit and debit card fraud. It also enables merchants to process all kinds of online payments including debit and credit cards, digital wallets and so on. Payment gateway acts like the go-between to ensure that the customers’ personal information and data is kept completely confidential.
For merchants who already have a merchant account, setting up a payment gateway is extremely easy and hassle-free. All they have to do is find a gateway provider, compare the available options and choose the one that best suit their business needs and budget. One must also find out if the gateway provider is PCI-compliant and has SSL certificates or not. Businesses must only collaborate with providers with proper credentials and reputation.
When shopping online or making online payments, security is paramount to customers. E-commerce stores and businesses accepting digital payments that have a payment gateway are trusted by customers. Payment gateway helps in fraud management and brand can expand their business without having to worry much. It is important for long term success.