Things To Keep In Mind Before Choosing a Payment Gateway For Website
For any business, it is imperative to choose the best Online Payment Gateway. eCommerce is the fastest growing industry holding immense potential. There’s a multitude of eCommerce Payment Gateway options. So, there’s a struggle to choose the platform meeting specific requirements. Choosing a Payment Gateway Solution is a focal point for an eCommerce website. A payment gateway is a valuable tool for eCommerce websites which may be online, web, or mobile app. All the websites are customer-centric. So, you have to provide a safe, quick, and Secure Payment Gateway. Many pathways for payment and fast settlement becomes vital. It is an integrated solution for POS (point of sale). Let’s discuss the details of choosing a payment gateway for an eCommerce website.
The Work Module Of Payment Gateways Payment Gateway is the third-party service. Understanding the Working of Payment Gateway is vital.
It supports automation of transactions for any Business Niche. It also facilitates the authorized transfer after validating credentials. A payment gateway handles information sharing between the Payment Portal and Front-End Processor. Payment Gateway Providers offers easy & fast online transaction between a buyer & seller. Without a Best Online Payment Gateway, it is not possible to pay for any service or product. PayPal is an example of a Payment Gateway Companies. The top mobile app developers and leading mobile application development companies recommend it. In this section, we will analyze How Payment Gateway Works. So, let’s start the show, right now.!
Payment Gateway Functions Payment Gateway functions in various processes like
Encryption: During this process, the web browser encrypts the data. Payment Gateway transfers the transaction data to the payment processor. It’s related to the dealer’s bank.
Authorization: Online Payment Systems makes an authorization request to the card association. Upon which the credit/debit card issuing bank accepts/decline the offer.
Order Filling: Authorization of the merchant and customer gets forwarded to the gateway. After that, the Mobile Payment gateway transmits it to the website.
Verification of the Delivery address.
Velocity pattern analysis
Computer fingerprinting technology
AVS checks
Identity morphing detection
Geolocation
Merchant Account And Alternatives What Is a Merchant Account?
Merchant Account is a bank account that lets businesses accept payments. There exists an agreement. It’s between a retailer, a merchant bank, and payment processor. All this contributes to card transaction settlement. There is a private merchant account for online shopping.
Alternate Option PayPal transactions do not involve a merchant bank. It provides fast and secure transactions. One should avoid Mobile Payment System demanding for repeated sign-up. The choice of the platform depends on feedbacks, demos, and technical advice.
Key Components Involved In An Online Transaction Transaction Online payment transaction involves the participation of three parties. The owner or retailer who receives payment. The second party is the buyer who makes the payment. The third party comprises of the payment gateways. It connects the other two parties to complete the transaction. Let’s discuss them in detail.
The Retailer: One needs to agree with the merchant account. After that, he/can perform any transactions. Merchant bank account makes the payment on vendor’s behalf. An internet merchant is available for online transactions. But, with the payment gateway, there is no need of having a merchant account.
Customer: Payment Provider needs a credit/debit card to pay for any service or product. But only after permission of card issuing banks, a transaction is valid.
Technology: In-Between technology aids the transaction between the retailer and the customer. Payment Gateway links the card of the customer with the shopping cart.
The Online Payment Processing helps in processing, billing statements, and working with the bank. It helps in simplifying things.
How Are Payment Transactions Processed?
The merchant needs to look through the process of the transaction to know how the money flows. The two stages of the Mobile Payment Processing are ‘Authorization’ and ‘Settlement.’
Authorization The transaction process occurs in the following steps:
The customer initiates the payment process. For that purpose, he/she buy the product through debit card/credit card.
The payment gateway encrypts the informational data. It’s for keeping the data private before the payment process.
The payment process makes an authorization request. It asks the card issuing bank for permission. This request is either declined or accepted.
After the approval, the transaction gets completed. The notification gets sent to both customers and merchants of the transaction.
This process takes place within 1-2 seconds.
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