With the advancing technologies in web development, e-commerce businesses are top-notch across the globe. And each of these online businesses requires an online payment option. A payment gateway is a great solution to create a safe and secure online payment option for your business.
What is an Online Payment Gateway?
Every online business has to have an option to let the customers make payments online. Just as swipe machine companies replaced paying direct cash, cash on delivery in online business is outdated and replaced by cashless transfer of money through online payment gateways.
These online gateways are preferred over cash on deliveries:
- By the customers: because they can avoid worrying about the need to make direct contact with the people involved in the online business to make the related payments
- By the online business team: because can get instant payments even before they provide their service or deliver their product
And when the question about what exactly these payment gateways are is, they provide services to online businesses regarding the “payments” section of their business. They take full responsibility for the entire procedure involved in making these online payments. This whole procedure includes transferring money from the customer’s bank to the company’s bank in a highly secured fashion.
Online Payment Gateways: How do they work?
- The role of these gateways starts when the customer clicks on the “proceed for payment” option on the website. The customer will be forwarded from the business website to an intermediate weblink of the online payment gateway.
- The customer has to enter credit/debit card details like the card holder’s name, card expiry date and CVV. In some cases, an OTP sent to the bank registered mobile number is also involved.
- These details are noted by the payment gateway service provider and are sent in an encrypted format to the bank to which the merchant or the online business team’s account is linked.
- The following internal work is similar to that of a bharat pay swipe machine
- company. The credit/debit card company verifies the noted details and the customer’s bank account for its validity and the availability of money. The transfer of funds from the customer to the merchant is then initialized.
Why is the security feature in online payment gateways important?
Making a payment through these gateways involves the customer entering sensitive bank details. In a world where hacking and online frauds have become too much, it feels highly uncomfortable for the customer to enter these details. It is the reason why the online payment gateway that you choose for your business needs to be a highly secured one. Some key features of a secured payment gateway are:
- Properly encrypting the customer’s bank details before sending them for further processing in the money transfer.
- Placing the business’s logo on the payment gateway page assures the customer that they are not directed to a fake or a scammed page during the online payment.
- Correctly showing the transaction details after the payment is made.
Advantages of Online Payment Gateways
- Reducing the work for online businesses: Making the website for an online business is a complex job as it involves constant uploading, updating, and heavy customer traffic. To design a safe and secure payments option in the website is double the work as the payments option also requires an equal amount of maintenance. The payment gateways thus reduce this extra work for the online business and save their time.
- Makes the customers feel safe during payments: An excellent online gateway is a brand by itself. So, when they see that the website uses the gateway processing of this particular website, they will feel safer making the payment.
- Using a good payment gateway for your website also improves the trust in your business and attracts more customers, thereby giving you more profits.
Online payment gateways are designed to be a simple process, giving no stress to both the customer and the company or brand. Their design is similar to the work of a swipe machine company, except here, there is no need for tapping or swiping a card across a machine. Instead, a customer has to fill in a few bank details, and the rest is taken care of by the gateway service provider, thereby making our lives easier.