What is a Payment Gateway?
A payment gateway is a merchant service that accepts credit card payments for online and offline businesses. A gateway serves as a link between clients and merchants, making transactions more efficient. It incorporates security mechanisms and encryption to secure the transaction data. Payment processors/banks send data back and forth to mobile devices/websites. Payment gateways are critical in helping organizations thrive as technology opens up new payment methods and marketplaces. Customers are driving the desire for safe, hassle-free shopping, thanks to the popularity of digital payment methods like PayPal.
Benefits of Payment Gateway Integration
The e-commerce industry is exploding. The E-commerce platform requires an effective payment gateway to provide customers with a convenient and secure platform, seamless transactions, and delivery to their doorstep to increase customer loyalty, sales, and profit. In the case of a payment gateway, the shopper could be in a different city, state, or country entirely. Because of the shopper’s anonymity and distance, a payment gateway requires special encryption and verification technology. An e-commerce platform requires an effective payment gateway to ensure payment security, improving consumer loyalty and revenues.
A payment gateway makes online buying as simple as possible by enabling smooth and straightforward checkout features. Payment gateways also interact with the shopping cart, offer speedier payment processing, accept various payment methods, avoid chargebacks, handle fraud, and allow recurring billing. Almost 40% of all online purchases are made on impulse; thus, having an easy payment option will surely enhance sales. Getting a digital platform to collect payments online can boost your company’s overall success.
Integration of Payment Gateways
There are four primary ways to incorporate a payment gateway in general. They all differ in terms of whether you must adhere to any financial regulations (PCI DSS) and the level of user experience during the checkout and payment process. Payment gateway integration is a process to incorporate the features of payment gateway into your business process (website or mobile app).
PCI DSS Compliance
If you only need a payment gateway and don’t plan to store or process credit card data. In that case, skip this part because your gateway or payment service provider will handle all of the processing and regulatory requirements.
However, if you’re dealing with sensitive financial data, you’ll need to follow industry guidelines. PCI DSS (Payment Card Industry Data Security Standard) is required to process credit card payments.
As a third party, a hosted payment gateway is very useful. As a result, customers must leave your website to complete a transaction. Consider a scenario when a customer is redirected to a payment gateway web page to enter their credit card number. The customer is sent back to the merchant’s page after the transaction data is delivered. They complete the checkout process here, and the transaction approval is displayed.
The connection is made through an API, and integration manuals are usually available on the vendor’s websites. PayPal Checkout, for example, recommends a Smart Payment Button for integration.
Direct Post Method
Direct Post is an integration solution that allows customers to shop without leaving your website because PCI compliance is not required. After a customer clicks the “buy” button, Direct Post anticipates that the transaction’s data will be uploaded to the payment gateway. The data is sent directly to the gateway and processor without being stored on your server.
A merchant would establish an API connection between your shopping cart and its payment gateway to postcard data.
Non-Hosted (Integrated) Method
A fully integrated payment gateway ensures that no third parties are involved in the payment checkout process. Companies can utilize a white label payment gateway as a non-hosted alternative in some instances. Essentially a pre-built gateway that you can personalize and brand. Non-hosted payment gateways connect to your server using APIs. As a result, the integration will necessitate the involvement of an engineering team.
Choosing A Payment Gateway Provider
Now it’s time to choose the most appropriate payment gateway option for your business. You may prefer a payment gateway that considers all the elements and characteristics of your business and clients.
Analyze pricing, verify transaction limitations for a specific provider, examine merchant account choices, and consider mobile payments before choosing a provider.
Don’t forget to double-check that the gateway accepts the essential payment methods and credit cards and that your product category is allowed by the provider.
Because the plethora of gateway providers can be daunting, here are some of the more popular and reliable options:
Stripe is an e-commerce-specific payment system. Stripe accepts all primary payment methods, including Apple Pay, WeChat Pay, Alipay, Android Pay, and mobile payment providers such as Apple Pay, WeChat Pay, Alipay, and Android Pay. It has a streamlined PCI compliance approach with 135 accepted currencies and stripe integration with other third-party platforms.
PayPal is one of the world’s most extensively used electronic payment systems and one of the most popular payment gateways in the USA. PayPal’s gateway accepts all major credit and debit cards, PayPal payments, and a variety of other payment options.
Amazon Pay is an e-commerce behemoth with a platform built specifically for online merchants. Amazon accepts all forms of payment and credit cards and works seamlessly on various devices.
For B2B e-commerce, Payment Gateways are the way of the future. It’s crucial for creating a secure connection between the website and the payment processor and encrypting the payment data for each transaction. When choosing a payment gateway for your company, you must be pretty cautious. When used correctly, mobile payment gateways provide a seamless experience for both businesses and customers and assist in the growth of your company. As the world is moving forward the future of e-commerce specifically and all businesses in general. Integrated IT Solutions fully understands the need of hour and provides seamless integration of payment gateways to boost businesses.