A payment gateway software is a tool that authorizes payments for businesses, especially retailers. Payment gateways are used by ecommerce stores for processing online payments using credit cards and other electronic methods. They ensure that confidential information like credit card numbers and passwords entered while making payments are passed securely on the network using high tech encryption technology.
The payment gateway connects the checkout software to the merchant account. It enables the merchant to process, verify and accept or decline payments from customers. It passes the cardholder’s data to the card processor from the software or point of sale device. Let us dive deeper into payment gateway software and its benefits.
Why use a payment gateway?
As now we understand what a payment gateway is, the question arises why we need a payment gateway if it’s only a middleman between the merchant and customer. Payment gateways are especially beneficial in cardless transactions. When a customer does not possess a card, they need to enter the card information on the payment page.
But how can the merchant be sure that the card information entered by the customer belongs to his own card? It requires a little effort to know somebody’s card information and use it for shopping. The process is risky, and the risk of fraud in online payments is higher. It is here that the payment gateways come into play to secure the transactions and prevent fraudulent transactions. Security of transactions is the first benefit of using payment gateways. Let us explore all the benefits.
Secures all transactions
While processing a transaction, the payment gateway transfers sensitive user information from the user to the acquiring bank by encrypting the data. The transfer of information takes place between the customer’s bank and the merchant’s bank. It acts as a third party that uses an encryption algorithm, a private and public key. The public key does the work of encrypting the information like card number, email id, mobile number, etc. The private key decrypts the same information, and the process is called an end to end encryption that decreases the chances of fraud and data theft.
Payment information storage
Payment gateway is a great service for ecommerce sites that enables users to store their payment information in their accounts. So, they don’t need to re-enter their information every time they need to make a payment. With a payment gateway tool, users can store the information of multiple credit cards in a single payment account. This user information is encrypted and stored in the payment gateway separately from the e-commerce app or website.
Payment gateways provide multiple APIs (application program interfaces). These software packages supplement the payment gateway and help customize the system to make it work as per the requirements.
Hosted payment page
A hosted payment page is a page where customers are redirected when they are ready to make a payment for a product or service. The payment gateways receive the user data before it passes it to the acquiring bank. This hosted payment page can reduce the PCI burden for ecommerce platforms and merchants if you don’t collect or save the user data on your server.
Multiple Payment Options
Today’s e-commerce environment is highly competitive where everyone aims for more sales and revenue, it is necessary today to deliver a great customer experience. The hassle-free checkout process and multiple payment options are some of the dominant factors influencing the customer experience. Not accepting payments the way the customer would like can lead to dissatisfaction and a poor customer experience. Various payment options help the customer to pay and make payments with ease. It contributes to customer satisfaction and thus increases the company’s credibility. Multiple payment options increase your chances of converting leads into sales. Increase the reliability, reliability and visibility of your website. The different payment options that are essential for doing business are
· Credit or debit cards
· Electronic money transfer
· Mobile payments (Google Pay, Apple Pay etc.)
· Integrated express payment (Amazon Pay, PayPal, etc.)
· Payments in cryptocurrency
· Cash on delivery (cash on delivery)
· Accelerate Transaction Processing
Payment gateways help you to distribute funds to your account faster than processing them manually. Since you can collect payments from your customers from other locations, you don’t need to rely on clients sending you a check or visiting your place to make a payment. Payment gateways allow you to receive payment over the phone and enable transactions on your app or website.
Make it more convenient to do business with you.
Since your customer does not have to be present to pay you, your “store” can be open 24 hours a day, seven days a week. You can practically avoid looking for clients for payment or phone etiquette by trying to convince them to come to your office to pay the balance.
Ecommerce payment solutions also offer customer support services to your customers. Before choosing a payment gateway software application, do your homework and make sure the company has a history of supporting its products and customer service. It helps merchants to fix the payment related issues of their customers that are usually not possible to fix without the help of a payment gateway.
Find a Reliable Payment Gateway
There are many payment gateways operating and offering services across the globe. The services and charges of every service provider are different, and some may not work with high-risk merchants. If your business belongs to a high-risk industry like cannabidiol, forex, investments, or gaming, you need to find a gateway that offers services to high-risk merchants. Paypound is a reliable payment processor for high-risk merchants that serve clients across the globe.
Payment gateways are an important part of the present digital economy. They allow your customers to share their financial information safely and reduce multiple barriers for the ecommerce industry. From simple card reading devices to the most sophisticated systems, payment gateways can help you to make your payments secure and offer your customers the confidence to buy from you without worrying about the security of their personal and financial information.