E-commerce is the future of new and small businesses. Currencies are being replaced by contemporary payment methods. Hence security is an important factor to ensure easy and trusted shopping experience. Payment gateway is a virtual system on websites intended to make the payment processes as smooth and efficient as possible. It provides a secure transaction by authorizing the credit/debit cards used by the customer.
Global Multichannel retail customer survey 2012 reported that around 2.7% of the respondents shopped online daily and about 31.8% did monthly online shopping. Another survey report of 2013 says that about 93% of the US customers shop online.
What are the types of payment gateways?
There are three basic types of payment gateways:
- Application Programing Interface
- Third-party Payment gateway
- Integrated Payment gateway
The right payment gateway can better manage communication with banks, associations and processors. It acts as a translator, traffic cop and body guard interpreting and directing data streams through a secure route to the appropriate destination quickly and accurately.
How should a payment gateway be?
- The payment gateway should be listed as certified on the PCI council website of approved providers.
- It should offer flexibility to switch among processors and payment providers rapidly and resourcefully.
- It must interface to multiple POS systems while providing the same level of reliability and reporting across the entire enterprise.
- Gateway providers must be able to track down and immediately resolve issues in transaction.
Why is Payment gateway advantageous over other payment systems?
- This method of payment is much faster and easier than cheques and credit card processing.
- It is much secured than manual credit card processing.
- Popular payment gateway service providers avoid unauthorized transactions using fraud protection mechanism.
- These gateways ensure customer personal data protection.
Online shopping is done over both PC and tablets. Presently the number of people browsing the websites for shopping using mobile phones is increasing progressively. Some purchase it online and the some find the details of the product including its price and discount on the website and later purchase it from the store. Rapid change in payment industry is inevitable; finding a gateway provider with strong track record will help merchants to have a peaceful trade and also gives better solutions to customer transaction issues.
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