Quick Guide to Payment Gateways
All the things you need to know about payment gateways
What is payment gateway?
Well if you have bought anything online recently and have paid using the details on your credit cards chances are – you already have a vague idea of what a ‘payment gateway’ is. But like the rest of us, you probably might not have the slightest clue of how it truly works. Don’t worry, we got you covered.
Behind the scene of Payment Gateway
Each time that you check out on your online shopping cart, a page will prompt out where you have to select your payment method and enter in your credit card details in order to proceed with the order.
There are several processes that take place within a span of few seconds
The website will send the credit card details to the payment gateway where the information will be encrypted over a secured channel and sent over to the bank for authorisation. The bank will in turn send a response whether the transaction is approved or declined. Once the bank approved, the payment gateway will immediately return the response to the merchant and the customer (in this scenario, you) to signal a successful transaction. On the flip side, if the transaction is unsuccessful, you will receive a decline status on your order and you won’t get that amazing pair of shoes you see on the screen.
The benefits
No doubt that payment gateway offers benefits to both the merchant and the customer. It allows a swift and hassle-free payment online and overseas, reaching all over the globe and at different currencies. The payment itself is real-time and completely secured thus eliminating the factor of slow, tedious steps and risky transactions. If you are a merchant or if you are considering to take your business online, just imagine having your items or services available for the customers to purchase at all time throughout the day – even when you are fast asleep.
Some of the more popular payment gateways
You have probably heard of these:
• Paypal – a well-known global payment gateway that accepts credit cards and processes both retail and mobile credit cards and gives you the perks of creating your own check out pages.
• iPay88 – a Malaysian-leading payment gateway that is more widely-used in Asia. iPay88 allows credit, debit, Paypal as well as online banking payments.
• Wirecard – a solution to a less-complex and highly transparent online payment system that caters to various sectors.
• PayU – offers a swift and safe payment processes with more than 250 secure payment methods.
• Cybersource – an integrative payment management platform used by over 400, 000 businesses with an effective fraud prevention system.
• Stripe – specializing in the management of recurring billing for all kinds pf businesses. It has features in managing multiple billing schedules and billing models make this payment gateway a merchant’s choice.
References:
https://www.entrepreneur.com/article/294964
https://www.singpost.com/business/knowledge-centre/articles/guide-choosing-payment-gateway
