The internet has completely revolutionised how commerce happens in today’s world, providing consumers and merchants with a level of convenience that was unimaginable fifty years ago. At the centre of digital commerce, however, is an electronic payment technology which facilitates financial transactions between two parties without the need to exchange cash. An eCommerce payment gateway is one of the many payment solutions that work to make an online sale possible. This article highlights all you to know about how a payment gateway works and how to set it up for your eCommerce website.
What is a Payment Gateway?
A payment gateway is the virtual representation of a point-of-sale terminal. Just as a customer at a physical store provides his card details by tapping or swiping at the POS machine, a payment gateway is a place on an eCommerce website where customers securely input their payment card information. The job of a payment gateway is to read and confirm the validity of card details provided before encrypting and securely transferring the information to a payment processor which is responsible for completing the transaction.
How does an eCommerce Payment Gateway work?
The work of an eCommerce payment gateway starts when a buyer checks out on an eCommerce store and attempts to make a payment. Depending on the type of payment gateway used by the merchant, the buyer may be able to enter his card detail directly on the eCommerce website or he may be redirected to a third-party payment gateway website to make payments.
Once the eCommerce payment gateway receives the card details, it encrypts the information to protect the customer’s information in incompliance with the Payment Card Industry Security Standard and then forwards it to the payment processor which is responsible for communicating with the customer bank and the merchant’s bank to receive authorisation and ensure that the funds are transferred and settled into the merchant’s account.
As soon as payment approval has been provided by the customer’s bank, the payment processor shares this message with the eCommerce payment gateway which displays a transaction success message to the customer. If the payment was declined, the gateway also shares this message with the customer.
Why You Need a Payment Gateway for Website Selling
If you’re wondering whether it is worth it to get a payment gateway for your website store, here are a few reasons to consider:
- Without a payment gateway for website sales, you will be unable to receive any online payment from your customers.
- A payment gateway provides necessary security technology to detect fraudulent activity and protect you and your customers from false or illegal transactions.
- Having a payment gateway for website transactions ensures that online payments are faster and simpler for customers.
How to Set up a Website Payment Gateway
Setting up your website payment gateway is quite simple:
- First, you have to select a payment provider that is compatible with your eCommerce platform.
- Next, open an account for your business and the website where customers will check out.
- Finally, you will be asked to follow an integration process which the payment provider will guide you through.
Can You get a Payment Gateway for free in Nigeria or Kenya?
Many payment gateways offer free setup and integrations for your eCommerce website. A good example is Tingg Africa, which is arguably one of the best payment gateway available for business owners in Nigeria and Kenya. Tingg allows businesses to set up an account for free, while a quote detailing transaction fees for daily payment processing is provided after signing up.
Tingg Africa – Best Payment Gateway for Nigerian and Kenyan Businesses
Tingg Africa is one of the best payment gateways available in Nigeria and Kenya with 1000+ businesses across Africa using Tingg to provide the best internet payment experience to customers. Tingg’s payment gateway solution is easy to integrate into any website or mobile and offers eCommerce businesses the flexibility to accept payments in multiple currencies and various payment methods, including card payment, mobile money, bank transfer, QR code, direct bank debit, and USSD. Tingg also provides a single transaction reporting view that allows you to reconcile payments and keep track of cash flow into your business.
Empower your eCommerce business today! Visit tingg.africa/ and open a Tingg account now.
