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Payment gateway integration: why and how?

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If you are an owner of an eCommerce website, you definitely look for new ways to increase revenue. And if you have not considered payment gateway integration yet, this article is a really good sign.

Payment gateway is a service that aims to authorize credit cards or direct payments processing. It’s widely used either in eCommerce business or in standard brick and mortar shops. Principally, it’s a software application that connects a website and a bank.

Figuring out how everything functionates will help you to find the best solution namely for your store.

Here are 5 tips for merchants to choose a payment gateway:

  1. Judge ease of integration;
  2. Take into account customers reviews;
  3. Detect funding speed;
  4. Think about brandability;
  5. Keep fees in mind.

Now we turn to the following questions: why and how?

You might definitely need a payment gateway, since you will be able to receive payments straight from your clients, no matter if you own an online or brick and mortar shop.

The biggest advantage is that you don’t have to worry about physical point of service to authorize and prove the transaction. Such a system is also convenient for your consumers: adding one more payment channel clearly attracts a bigger audience, as certain customers would gladly pay directly from their homes.

Here is a brief description of the whole mechanism:

  • Order confirmation and adding CC info;
  • Data encryption for security reasons;
  • Information being sent to credit card associations;
  • Transaction approval or denial;
  • If approved, changing status to authorized;
  • Approval on the vendor’s side;
  • Payment gets to the card issuing company;
  • Payment’s sending to the relevant bank;
  • Transaction confirmation and adding it to the cardholder’s statement.

For more details about how to choose a gateway that will correspond to your needs please follow this link.

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