Payment gateways fulfill
the most significant role in online transactions and make E-Commerce possible.
Payment gateways are the most integral part of online shopping and a viable
means of financial interaction between the seller and buyer.
An Online Payment Gateway processes, verifies and
accepts direct payment for enabling an online funds transfer. The speed and
reliability of the process and its efficiency have been a boost to the global
E-Commerce industry and have enabled trade between parties thousands of miles
apart.
Online shopping websites
can’t do without payment gateway. These services act as a mediator between the
online seller and payment processor by facilitating a secure authorization of
funds transfer between the intended parties.
THE NECESSITY OF PAYMENT
GATEWAYS
Payment gateways have been
established as the most secure modes of payment acceptance for online shopping
websites. With the persistent risks involved with credit card frauds,
online payment gateway services are
the most feasible modes to transact securely and with the highest level of
encryption and authorization, are literally fool proof.
The flexibility and
familiarity of the payment gateways makes it a go-to service and online
transaction means. This would be the best serving of user-experience and render
a company credible for the customers thus pleasing them highest.
EVERYTHING TO KNOW ABOUT
PAYMENT GATEWAY PROCESSES
After a customer confirms
an order for the desired product, it is directed to the payment gateway which
performs a number of tasks to finalize the transaction. The various steps
involved in the process have been stated as follows:
§ Information
encryption
All the information to be
shared with the vendor’s server is encrypted. The same transaction information
is forwarded to the payment processor being utilized by the acquiring bank of
vendor party.
§ Bank
authorization request
The payment processor transfers
the data to the issuing bank or card association in use by the customer and
obtains an authorization for the same. The bank or card authority can either
approve or deny the transaction.
§ Payment
processing
The payment gateway
receives an authorization from the processor for commencing the further steps.
The interface receives a command to process the payment and a response is
generated. At this stage, the merchant approves the order.
§ Transaction
clearance
To serve a clearance for
authorization of the transaction, the settlement of funds between the acquiring
bank and issuing bank occurs after an approval of the transactions and
authorization.
While the process may seem
complex, all the stages are completed within a matter of seconds and are very
secured with authorized nods required at the critical stages by the user. The
business significance of payment gateways is immense and if you are in the
E-Commerce industry, it becomes a vital part of sales operations.
Cube
Reviews offers
online sellers an analytic comparison of the best payment gateway services to help choose the
optimum. With the reviews provided, you get an insight of the services that are
most suitable for your business needs and the ones that promise better
prospects of sales and customer delight.
