Why Add A Payment Gateway to your Online Business
Category: Business | Posted date: 2021-11-18 23:17:32 | Updated date: 2021-11-18 23:18:27 | Posted by: Admin
How important is money to your business? If you own an online business, then money doesn’t just stand alone. It is very crucial to also look at how it comes and goes, especially that it’s through digital transactions. So the real question is, how important is security to your online business? For that, Payment Gateway got your back.
Let us first define what is Payment Gateway?
It serves as the channel or tunnel to any transaction that requires money and other sensitive information from the customer. It deals with the process and authorization for a payment transaction to finalize, either it’s gonna be a success or a fail.
For eCommerce websites, Payment Gateway is a feature that can’t be ignored. It doesn’t just make the payment transaction easier and secure but it also promotes the business and attracts higher web traffic.
So how does it work?
The process of online payments is getting scarier than ever with all the scams, frauds and online phishings. Payment Gateway makes sure your transaction is safe and undergoes encrypting and reporting. As mentioned earlier, it serves as a tunnel; the tunnel between the customer and the merchandiser. The most famous medium of payment is the credit card, which contains sensitive information. That is what the Payment Gateway is trying to protect.
It connects you to the bank which will give the authorization and decides whether the account or the credit card holder is able to proceed to make the payment e.g. the account has enough balance/money or the holder has other pending payments.
The name Gateway suggests that it makes a way for payments to come through.
Examples of most widely known Payment Gateways are:
PayPal
Amazon Pay
Stripe
MongoPay
SagePay
These gateways however, have their transaction fees that charge you per transaction. But if you prefer to pay monthly, there are also providers that offer that service, but keep in mind that an installation fee may also come into consideration.
But what’s so special about this Payment Gateway that every online business should feature on their website?
Apparently and obviously, customer’s trust relies on how the store treats them. As for having hassle-free transactions and a secure way of handling their money, they surely will go back and avail your services again and again.
Payment Gateway has different transaction types that suit every payment purpose.
Examples include:
Sale/debit - the most standard payment method. Where you can pay using your card or direct from the bank.
Credit - merchants can credit a user's credit card when it exceeds the amount of money from the previous successful transaction.
Void - this can be the case when the transaction is not settled.
Refund - it cancels the current transaction when the merchant proves that the buyer is already settled their payment.
If you are just starting out in your online business, then start smart. Payment Gateway can also be considered as a way of precaution. This avoids payment conflicts and not just securing your customer’s money, but also your business’ reputation.
