Internet Payment Gatewaymeans the protocol stipulated/to be stipulated by Us authorizing the payments made using PPI over the internet upon authentication of the Customer. PG would take care of the approval part as well and make sure that the power to collect the payments from anywhere do not go to any fraudsters. Payment Gateways first captures the customer’s paid amounts in the Nodal Bank Account and then it is settled in the Merchants Bank as per the pre-decided settlement time period. Payment Gateways even facilitate buyer and seller protection by being a mediator between both and they have a Dispute Department for the same.
Choosing the best payment gateway option available is dependent entirely on your business, what platforms you decide to sell from and how many channels you choose to sell in. PayPal is popular as a redirect payment gateway payment gateway definition because of its high reputation with customers and the availability of multiple gateway options. As an ecommerce retailer, your job is to accommodate these options so customers can make secure purchases any way they like.
FAQs for Payment Gateways
If you have a traditional brick-and-mortar business and don’t plan to offer online sales, all you’ll likely need is a payment processor. Many businesses use a payment processor that’s connected to their merchant account, meaning all of their payments are delivered directly to them. However, you can also use a third-party payment processor that stores payments for many different businesses. If you want to take recurring payments you may want to look for a system that will store your clients’ credit card numbers and let you automatically charge them on a recurring basis. Many gateways now have this feature, but in almost all cases they also require your business to have an online merchant account. Application Programming Interface is a documented interface that allows applications to communicate and use each other’s data or functionality in their work.
There are many gateways available that are customizable and can easily be integrated with your platform of choice. Selecting one of them will make life easier for you and your customers. In an increasingly digital world, security must be of the utmost concern. According to a recent report, around two-thirds of consumers would stop shopping with a retailer previously hit by a security breach.
Payment Gateways vs Payment Processors
For example, if you have an online payment gateway for e-commerce and a physical payment gateway for in-person payments, you want both systems to feed into your POS to simplify bookkeeping. And if your gateway solutions aren’t integrated with the rest of your payment landscape, you want to make sure they maintain PCI compliance or you could be on the hook for some kinds of fraud. The issuing bank approves the transaction and sends this information back through the credit card network to the merchant bank and the payment gateway. For example, Square’s free virtual terminal software is accessible via your Dashboard and capable of accepting payments right away, with no setup or engineering resources required.
- It also appeals to self-isolating buyers or those in areas under government restrictions.
- These are standards put in place to protect customer data and payment information.
- In online stores, payment gateways are the “checkout” portals used to enter credit card information or credentials for services such as PayPal.
- In the back, an authorization request is sent to the customer’s bank which means that it checks if there is available balance and also waits for the authorization to deduct the same.
If you decide to go this route, ensure that you are confident in the security of the payment gateway. Like redirected payment gateways, this method can simplify the payment processes while ensuring increased security on the back-end. If you are thinking about fees or payment types, in addition to PCI compliance and securing payment information, remember that payment solution providers like Stax are there to help. In this case, the checkout and payment processing is entirely handled by your own servers . As mentioned above, the overall fee for your payment gateway account varies on the provider themselves.
What do payment gateways get?
But it also securely authorizes the transaction, ensuring you’ll get paid. You need both for online sales — but using a payment gateway that’s different from your payment processor can give you flexibility to go with your preferred provider. A payment gateway collects and verifies a customer’s credit card information and is crucial for online payments. It ensures sure all the details are correct so the sale can be transmitted to the payment processor.
Test the payment gateway API using Postman or another API client tool to ensure it works appropriately and covers all your use cases. Plugins often provide a user-friendly interface for setting up the integration and managing payment settings. We now know the main things to consider when choosing the best payment gateway. Still, the essential requirements vary from industry to industry, so in this section, we highlighted the most critical payment gateway functionality for different sectors.
There are also payment gateways to facilitate payment in cryptocurrencies, such as Bitcoin. Following is the list of the most widely used and popular payment getaway providers along with a brief history about them. You should finalize that payment gateway which is supported in your country, not all them operate globally.
Any business accepting electronic payments online, no matter the volume, needs a payment gateway to facilitate the process. A payment gateway is the “virtual” equivalent of a physical credit and debit card reader. It transfers the data between the point of entry – either a terminal, website, or mobile device – to the payment processor to continue the payment lifecycle. A secure network should be your number one priority when looking for a payment gateway. Your customers must be able to have trust that their financial information will remain secure when purchasing from your store.
