There are many considerable factors when you are setting up an E-Commerce business. One of these factors is how to provide an easy payment process for customers. As such, your business needs a payment gateway to streamline the checkout process. Here is everything you need to know about payment gateways in 2022.
1. What is a Payment Gateway?
A payment gateway is an E-Commerce service that allows processing payments, namely debit and credit cards, by transferring key information between a website and a bank.
Furthermore, communicating directly with issuing banks helps to authenticate the payment details. Thus, payments will be automatically accepted/rejected based on factors, including if a customer has enough funds in the bank account and if the card details have been entered correctly.
In other words, the payment gateway simply facilitates the transfer of money between a customer and a seller. Additionally, the payment gateway helps to prevent your business from fraudulent payments and so on.
2. How does it work?
An E-Commerce payment gateway involves a series of steps to complete payment:
2.1 Payment Page
A customer places an order and enters their card details into the payment page.
2.2 Payment Gateway
The payment gateway receives the transaction details, including amount, currency, cardholder name, address, etc. Following that, the gateway identifies which card provider (E.g Visa, MasterCard, American Express) issues the customer’s card and redirects the transactional data to the right payment network for confirmation.
2.3 Issuing Bank
Once the transaction is passed to the issuing bank, it starts the authentication process and ascertains that the customer has enough funds in their account to complete a purchase. Based on it the transaction is approved or declined by the bank and responds back to the payment gateway. The customer and the merchant will be informed whether a transaction is successful.
2.4 Transaction Complete
If the transaction is accepted, the merchant will receive funds to his merchant account where they will stay for the agreed settlement period, before being sent to a business bank account.
3. How to choose the right payment gateway?
The payment market is full of various options of payment gateways and you might wonder how to choose the right for your business.
First of all, make sure that you know the cost of the service on a market. Payment gateways offer different tiers of fees and charges based on factors such as transaction volume. The cost also might vary depending on your business model, such as the high-risk business industries will usually have to pay more due to the increased risk of fraudulent and chargeback activities.
Another significant aspect to consider is whatever you are planning to sell to international customers. It will significantly reduce the price if you chose to have one payment gateway to handle all transactions.
Security is an absolutely essential factor when taking payment transactions for both parties. The best payment gateways comply with the PCI DSS. It prevents customer data and card information from fraud activities. In other words, you should choose a payment gateway with a high level of encryption to provide customers safe environment.
4. What benefits you can get from GlobePay payment gateway?
· Merchant Account. With setting up the payment gateway for your website, you will get a merchant account with GlobePay, which allows receiving the funds. By using a merchant account, you will be able to manage your cash flow and easily stay organized. Moreover, in the merchant portal, you can find sufficient insights and analysis of your transactions with currencies, payment methods and other information.
· Fraud Management. One of the strongest benefits of the payment gateway is fraud prevention, which makes online payment transactions more secure and credible. Implementing a payment gateway for E-Commerce businesses will highly protect your business and your customers, which also consequently raises business credibility and reliability.
· Customer Support. Another advantage is the customer support that solves any arising payment issues. We have 24/7 customer service support.
GlobePay helps all UK merchants by delivering secure, reliable payment gateways for businesses connecting them with consumers. We stand out for our competitive, flexible approach to both partner payment support and innovation.
