Importance Of E-commerce Payment Gateway For Your Online Businessby Megan Turner Marketing Manager
Today everyone sells and buys through the internet as it offers convenience and ease especially though the ecommerce payment gateways. Internet has captured the entire market in perhaps all domains as transactions on these platforms are much more easier and accessible than before. Merchants can easily accept credit card payments and shoppers get smooth and secure transaction facility, so it is a win-win situation for both the parties.
Mostly people who shop online may or may not be authentic so, with the integration of an apt payment gateway, this fear of fraudulent activities can be completely eradicated. The payment made via credit or debit are at highest risk due to the risk of either leakage of sensitive banking details or the card being hacked, but these illegal actions too can be curbed by using a suitable ecommerce payment gateway.
What Exactly Is A Payment Gateway?
The gateway is a payment system of the ecommerce which confirms online payments for the merchant, mortar agencies, electronic enterprises, traditional bricks etc. This e-payment system is secured and consistent which connects to the application of ecommerce or in-house payment mode, for example, the networks which is entrusted of processing banking or credit cards though online mode of payment.
Ecommerce payment system works as the communication channel between the merchant and customer, through which the customer’s payment is securely transferred to the merchant’s bank account. You can find this e payment gateway as the virtual replica of the point of sale machines which are generally used in major retail outlets.
How Does It Work?
Ecommerce payment gateway plays an integral role in processing the transactions and also authenticate the payments which are transferred to merchants by the customers. All the vital and specific details regarding the payments are encrypted by the ecommerce payment gateway which helps merchants accept credit cards online payments. They ensure that the required banking details are channeled with safety between merchants and customers.
Below are some steps that illustrate how a payment gateway works:
Step1: The customer places the order online of any product by clicking the checkout cart button or submit button.
Step2: After this, the information regarding the order placed is sent through the e payment gateway by the merchant. This is followed by transaction which is sent to the required bank or the secured page where the authentication part is requested or processed.
Step3: The transaction is either declined or authorized after the authentication process depending upon the availability of funds in customer’s bank account or credit limit in credit cards.
Step4: A message is then sent to the merchant by the payment gateway.
Step5: Once the payment is cleared by the banks and the payment gateway, then it is transferred to the merchants’ account.
Three vital things which are important while integrating ecommerce payment gateway agencies are settling, authorization and reporting. If the merchant is using payment gateway as the means of money acceptance, then the merchants can have the full control on the money earned from the business sales and he can put the money to use as per his wishes to generate more profits.
Created on May 7th 2019 00:47. Viewed 439 times.