Payment Gateway – What is it?
A payment gateway represents a software app or service that manages credit cards and other transaction forms for e-commerce retailers and businesses in the same manner as a POS system does for a physical store.
A payment gateway’s primary mission is to handle credit card information of online customers dropping to your e-commerce store.
To guarantee that credit cards and other payment methods are safe and that the transaction between both the retailer and the client is effective, the application must be able to secure payment information.
Although the theory might be simple, some of the processes aren’t. The payment processing program must be able to send transaction details for authorization to the correct source and then transmit the request back to the store.
That’s how the store knows whether the transaction is approved or denied.
The main reason you need a payment gateway
If you have a current website or you are planning to have one in the future that will accept online payments, you will definitely need a payment gateway. One explanation is that all online credit card transactions are actually being done through payment gateways. There are no other viable options. Moreover, in order to authorize the orders of your customers and to obtain your money, you must have one. You will also need one if you intend to receive payments using a mobile device.
Payment gateway types. Make sure you choose the right gateway for your e-commerce website or app!
There are actually two types of payment gateways: hosted payment gateways and integrated payment gateways.
Hosted Payment Gateways
Hosted payment gateways assign the clients to a host network portal where they can input their data.
Types of hosted payment gateways are PayPal and 2Checkout. If you need to integrate a payment gateway to your website or app, PayPal may be the first choice to pop up, as it is proven to be secure, versatile, and many people worldwide have PayPal accounts.
If you plan to integrate a payment gateway into your website, Amazon Pay is another easy choice. Also, one of the most well-established payment gateway options in the market today is Stripe.
One advantage of a hosted payment gateway is that the host is the one responsible for security issues. Additionally, a hosted payment gateway is quite easy to set up.
A downside, though, is that in certain countries such gateways are not accepted. The drawback is that some of these gateways tend to be slow, which can have a significant impact on conversion rates.
Integrated Payment Gateways
Integrated payment gateways use an API to link your store or business to gateway services. Users make direct transactions through your online store, often known as non-hosted payment gateways. These gateways are mobile friendly and very easy to use.
A big disadvantage would be the fact that your website will be responsible for the security. If there is a violation on your website, you may be subject to an audit.
The great majority of integrated gateways come with extensive APIs and readily available modules to incorporate into your shopping cart. Moreover, if you run your site with a custom system, to incorporate the payment gateway into your website, you may need to shell out on custom programming.
Also, the architecture of your store might involve some modification to accommodate some of the features of the gateway provider.
Authorize.net is one of the pioneers that launched operations back in 1996 in the payment gateway world. Authorize.net accepts all major credit cards and operates with PayPal, Visa Checkout, and Apple Pay digital solutions.
How to integrate a custom payment gateway into your website or app
The particular procedures to incorporate the payment gateway would depend on the chosen gateway. There are a number of common steps, though. For example, you will need to link your site to the gateway and get an SSL certificate if you want to go with a hosted payment gateway. You’ll also have to obtain the gateway permissions such as the merchant’s ID, MWS access key, and confidential key. To make the payment process turn out the way you want it, you should be able to do a lot of customization.
If you’re using an integrated payment gateway, the first aspect you need to consider is make sure the security procedures are relevant. Indeed, by using some of the comprehensive APIs and modules that are easily available, you should be able to do this.
Therefore, in order to incorporate the payment gateway into your website, you might have to rely on custom gateway development. You’ll also want to ensure your payment portal supports a range of payment options and accommodates mobile phone users.
Having a payment gateway you have a 100% control of, may be a fantastic idea. You’ll be able to change it this way or the other, add unique features, and relieve yourself from paying the processing fees.
While determining how to build a payment gateway for a website, there is no need to start from scratch. You can go with hosted and integrated gateways, find ready modules to integrate into your site, or even build your own if you wish to be more creative and integrate payment into a website that differs from off-the-shelf offerings.
So, if you decide to integrate a payment getaway into your website and make user experience smooth, you might want to check out the services provided by WebChain. We can help you customize and install the payment gateway software that suits your company or e-commerce store best!