Small business owners who set their aim to create and manage their own online store should select a payment gateway for their store. Why? Typically, online store is equipped by online transactions. Indeed it is important for this type of business.
Online transactions are fast and convenient and now everyone can just as easily sell to the customers down the street as you can to shoppers on the other side of the world.
But, bear in your mind that online transactions are also mostly anonymous, making it very difficult to verify if buyers are who they say they are.
This is why e-commerce payment security is so important. To reduce fraud within your online store, you need to take proactive steps to prevent criminals from accessing or abusing sensitive credit card data. One of the best tools at your disposal is the online payment gateway.
However, many small business owners do not know what a payment gateway is or why they need one. Many are also overwhelmed by the number of solutions available online and find it difficult to determine the most important factors to look out for when selecting a payment gateway solution.
WHAT IS A PAYMENT GATEWAY?
A payment gateway, in essence, is an e-commerce service that processes, verifies and accepts or declines credit card transactions on a merchant’s behalf through secure Internet connections.
It is a conduit that seamlessly and securely connects your e-commerce application or in-house payment application to the credit card processing networks.
Payment gateways use special encryption and verification technologies to ensure legitimate transactions are securely transmitted.
Payment gateway helps to reduce fraudulent activities. Now let’s take a look at the advantages of having a payment gateway:
- Ease of Use
If you already have a merchant account and website, setting up a payment gateway is incredibly easy and there is very little maintenance required. Moreover, most online shoppers are already familiar with payment gateways since the majority of e-commerce sites come equipped with this technology.
- Branding and Control
Some online payment solutions redirect users to a third-party site to complete their transaction. But a payment gateway allows you to keep customers on your site — from start to finish. In addition, you can easily brand your checkout page to make it look and feel like the rest of your site.
As a result, you’re able to control every aspect of the user experience. Equally important, you can reduce cart abandonment rates by removing interruptions and confusing redirects.
- Faster Settlements
When using third-party payment methods, you may have to wait several days for a transaction to completely go through. You might even need a few additional days for that money to arrive in your account.
By contrast, payment gateways offer much faster settlements, which can be a major bonus if cash flow is a concern.
The reverse is also true — when necessary, you can quickly refund purchases so that customers don’t have to wait a long time to get their money back.
- PCI DSS Compliant
When it comes to the transfer of cardholder information, security is paramount. The Payment Card Industry Data Security Standard (PCI DSS) is a worldwide standard that was set up to help businesses process card payments securely and reduce card fraud. Typically, payment gateways are all equipped with PCI DSS to protect data and information of customers from anonymous. Before choosing gateway, make sure that it is adhered to PCI DSS compliance standards. PCI DSS makes your shoppers feel safe and secure. Nonetheless, PCI compliance represents the bare minimum you should accept when it comes to online payment security. This is because cybercriminals continue to create their tactics as they look for vulnerabilities within e-commerce stores.