Since a payment gateway is such an important component of an e-commerce platform, understanding it from a security standpoint is essential. The most important benefit of a payment gateway is security, which helps to reduce the severity and frequency of credit card fraud on the e-commerce forum. A payment gateway verifies the cardholder/shopper to ensure the safe transfer of funds from his/her account to the vendor platform’s account. exactly.com flow is safeguarded by a payment gateway. It retains security by adhering to a procedure, and thus the customer’s data is protected securely.
How does a payment gateway work?
The goal of payment gateways is to render payment processing more efficient, ensure security, and convenience. Instead of transferring payments, the payment gateway authorises funds transmitted to the vendor safely and soundly for the purchaser.
The stages below demonstrate how an eCommerce payment gateway works:
- Step 1 – The process begins when a customer orders on an eCommerce website and enters their credit card information.
- Step 2 – The information sent between the internet browser and the trader’s web server is encoded by the web browser.
- Step 3 – The transaction records are then sent by the gateway to the payment gateway used by the merchant’s acquirer.
- Step 4 – The transaction records are sent to a card association by the payment processor.
- Step 5 – The financial institution of the credit or debit card observes the approval request and either “approve” or “dismisses.”
- Step 6 – The processor then moves to the gateway an authorization about the vendor and consumer.
- Step 7 – When the gateway receives this response, it sends it to the site/interface to start processing the payment.
- Step 8 – Once the merchant has finished the payment, ‘Clearing Transactions’ is enabled.
- Step 9 – The issuing bank converts the “auth-hold” to a debit, allowing for a “payout” with the vendors’ obtaining bank.
Reasons Why Payment Getaway Is Perfect For Ecommerce Platform
The e-commerce industry is rapidly expanding. To offer customers a secure and convenient platform, smooth transactions, and shipment to their door, an e-commerce framework necessitates a convenient payment gateway that will lead to brand loyalty and, as a result, market share and profitability. Incorporating a payment gateway is simple and can be done by a merchant/e-commerce business that already has a website/application for the company. It necessitates little upkeep and is thus does not require too much money. Due to the obvious popularity of payment gateways, the majority of people are acquainted and at ease with their concepts. This makes things simpler for online businesses because there is no need for understanding.
If you meet your business needs, choosing and incorporating the right payment gateway provider isn’t that difficult or expensive. You could have an instant effect on your company’s customer experience and cash flow if you do it correctly. All you have to do is consider the factors mentioned above before selecting and implementing an appropriate payment gateway supplier.