An e-commerce store is one of the easiest ways to diversify your business operations. Typically, the store allows you to expand your market since clients do not need to access your premises when purchasing products.
Payment processing is a significant challenge when running an e-commerce store since traditional payment channels such as banks and cash are highly ineffective. Payment gateways are a viable solution, as they allow clients to make seamless payments when buying products from your website.
So what are payment gateway solutions and how do they work? Below is an extensive guide.
What Are Payment Gateway Solutions?
A payment gateway is an innovative technology that transfers data from a client’s credit or debit card to a merchant account owned by the business. It allows business owners and clients to make secure online transactions on e-commerce platforms.
The technology has a straightforward mechanism. Before a customer purchases a product or service, they key in their credit card details. The payment gateway transfers this information to a payment processor or card-issuing bank. The payment processor or card issuing bank then authorises the transaction and transfers the payment details to the payment gateway, which offers the customer instant feedback regarding their purchase. For instance, it could inform the customer whether the transaction is successful or declined.
There are different categories of payment gateway solutions. A hosted payment gateway redirects customers to another site where they key in their payment details before being redirected back to your website for checkout. A self-hosted payment gateway gives you more control since it does not redirect your clients to third-party websites. Instead, it keeps them on your website, allowing faster payment processing.
An application programming interface (API) gateway gives businesses more control over payment and checkout. The gateway allows you to customise the checkout process to suit your business needs. For example, you could include additional payment options such as mobile or crypto payments.
What Are the Benefits of Payment Gateway Solutions?
The primary benefit of payment gateway solutions is that they ease online financial transactions. For instance, a customer who intends to make an online purchase only needs to enter their credit card number, security code and expiry date. A few seconds later, they receive a notification regarding their purchase. Most payment gateways have friendly user interfaces, which goes a long way in ensuring a seamless purchasing experience.
Payment gateways guarantee security when performing online transactions. Ideally, the payment gateway encrypts customer data, meaning clients do not have to worry that fraudulent individuals will gain access to their financial information. Moreover, most payment gateways allow businesses to expand their market reach since customers can purchase from anywhere across the globe.
How Do You Choose A Payment Gateway Solution?
As a best practice, you should conduct prior due diligence to compare the various payment gateway solutions on the market. Start by checking the company’s reputation and licencing to determine the quality of services offered. For instance, customer reviews can give insights into the payment processing time, the reliability of the payment gateway and the services offered by the company’s support team.
What kind of payments does the payment gateway accept? The golden rule is to consider payment gateways that incorporate modern payment modes such as mobile money and cryptocurrency. Remember to assess the charges the payment gateway solution imposes and the volume of payments it can process daily. It helps you determine whether the payment gateway is the right match for your business.
A payment gateway solution is an easy way to improve the profitability of your business. At Tingg, we pride ourselves on providing businesses with innovative and affordable payment gateway solutions. Contact our team today and let us transform your business.
