Understanding Payment Gateways

A payment gateway is a system which enables online payments. It allows people to charge customers’ cards with the purchase they make online. It’s a secure system to protect both the vendor and the customer.

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It works similar to a real point of sales terminal available on the retail store of a brick and mortar. Online vendors may take card payments straight from their websites. The payment gateway remains the mediator between the transactions taking place on your website and the payment processor.

The payment gateway systems serve as a bridge between vendors and customers. It’s a safe channel to allow people to transmit information on the website. Online merchant accounts mostly have a payment gateway such as PayPal. Here are some benefits of a payment gateway for your business. You can also check more information on Powercash21 – Europe’s secure payment gateway merchant services.

1. Security

Payment gateway systems ensure that your customers’ information stays confident. Hackers or other unwanted third parties can’t access client data or other sensitive data on your website. It encrypts data on your site through a secure sockets layer (SSL). To ensure legitimacy, the system consults your bank. In case the payment is found not to be legit, the system automatically rejects the transaction. It will also avoid the issuance of chargeback fees. For instance, the Chrome platform displays it as a lock located near the URL. When clicking it, it reassures you that the connection isn’t only secure, but also, the information is private.

2. Integration

Payment gateways can be integrated easily with e-commerce platforms like WooCommerce, Magento, and BigCommerce. Different payment gateways have various features. Preferably, choose one that best fits your business. Always check and research on the payments gateway before making any decision. You can seek professional help if you’re not too sure about the solution.

3. Accepting foreign currencies

Some payment gateways support multiple currencies. You can consider a gateway that supports foreign currencies. However, it’s essential to note that you’ll end up spending more through these transactions. Before making a move, make a proper recording to avoid losing more money than you’re making.

4. Payment reporting

Payment gateways are created to enable businesses to get real-time reporting on their websites. One can view and get an insight into how their business is doing.

5. Availability

You can run 24/7 without having to monitor your online business. People can easily buy items on your platform without you constantly worrying about hacks or unwanted activities.

6. Payment options

Having a wide range of payment options comes in handy for the different potential clients. Basically, a regular payment gateway is supposed to accept both debit card and credit card transactions. But then, there are those that have additional features that are more sophisticated to support PayPal and gift voucher payments.

It’s also essential to check whether your payment gateway supports the point of sale. You might receive a free card reader to accept payments on the go at events or to use in your retail store.

About Mohit Tater

Mohit is the co-founder and editor of Entrepreneurship Life, a place where entrepreneurs, start-ups, and business owners can find wide ranging information, advice, resources, and tools for starting, running, and growing their businesses.

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