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Buyers Guide: Online Payment gateways

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Online Payment gatewaysWith online shopping becoming more and more popular these days, people are constantly using their debit credit or charge cards to buy products and services on the internet. The payments go through one of the many online payment gateways. One of the most popular online gateways is PayPal.

Online payment gateways are used in e-commerce industries that authorize payments from the customers for the e-businesses and online retailers. They are similar to EFTPOS (Electronic Funds Transfer at Point of Sale) terminals which we see in most retail stores, only these are virtual!

Payment gateways capture confidential information from the customer such as their credit or debit card numbers, and then pass that information securely to the merchant. How does this system work? Basically the owner of the site or the merchant acquires a payment gateway for his customers who visit their site to purchase their product or service. The payment gateway needs to be integrated by a third party.

The cost of integration for each payment gateway varies depending on the efforts taken to integrate the payment process. To explain the process in simple words-first the customer places an order through the website. He provides his credit or debit card information, that information reaches the merchant’s web server which in turn passes that information to its acquired online payment gateways.

Then the payment gateway requests for confirmation from the customer’s bank. The issuing bank response could be approved or declined depending on the customer’s account status. The response is forwarded to the payment gateway which in forwards it to the merchants server. At this point the message is encrypted again and sent to the customer. This way the customer knows that his card went through and his order is placed successfully or not. The entire process takes less than 5 seconds. At the end of the bank day, the merchant’s account is credited of the amount from the customer’s bank through electronic transfer.

All the secured information of the customer’s card is encrypted and sent to the online payment gateways. It is usually done via SSL (Secured Socket Layer) encryption. This ensures that the customer’s information is totally secured. Many people are still skeptical about giving their card numbers out online. But if you are purchasing from a reputed website or merchant, then be assured that the online payment gateways use completely secured integration process.

Online payment gateways are the backbone of any e-commerce site. Online retailers cannot think of operating their business without online payment gateways. The merchants should make sure that they use the best online payment gateways so that their customer’s sensitive information is secured.

Since online shopping is becoming very popular these days, many e-commerce businesses use only the best online payment gateways to retain their customer’s trust and improve their business. The best payment gateway integration process will make sure that the customer’s information is completely secured and the transaction is done as fast as possible without wasting the customer’s time and effort.

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