An ecommerce payment gateway can streamline and expedite payments. This increases cashless society where most payment services are carried out digitally or through credit cards. This benefits both customers and businesses. Payment gateways are a type of merchant service that handle credit card processing. They could be viewed as the electronic equivalent of a cash register.
However, it must be practical and safe, just like any cash register. It is crucial to comprehend how payment gateways operate.
Payment Gateways: How Do They Operate?
Whether you are purchasing something online or in a physical store, a payment gateway serves as the main cog in the payment processing system.
Common Payment Gateway Types
Payment gateways typically come in three different categories:
- On-site payments
The checkout process and payment processing are handled entirely through your system in large-scale businesses. The benefits are now reversed; you will have more authority and responsibility.
Every factor matters if you process payments on-site, and any enhancement to the customer experience can have a significant impact on your bottom line. This is especially true for retailers with high sales volumes.
- On-site checkout; off-site payment
With this approach, the front-end checkout will take place on your website, but the back-end payment processing will take place at the gateway. Similar to redirected payment gateways, this technique can streamline the payment procedures while enhancing back-end security.
The drawback is that you will not be able to fully manage the user’s experience via the payment gateways. If you choose to take this path, make sure you have faith in the payment gateway’s security.
Redirects frequently offer options for different payment options, like a business allowing PayPal. A redirect occurs when the gateway directs a customer to the PayPal payment page to complete the transaction. A Redirect gateway enables a small business to incorporate the ease of use and security of a larger platform. Redirects have the advantage of being simple for the retailer, but they also mean less control for the business.
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Limitations of payment gateways
Not every payment gateway is created equally. You must be aware of and willing to accept some restrictions when selecting a payment gateway.
Take a closer look at the following:
- Rarely do gateways accept all kinds of cards or payments
Although many providers of payment gateways like to tout the versatility of their products. They frequently do not mention the instances in which they cannot accept payments from particular card issuers and processing portals. Make sure you are aware of the requirements for your customers.
- International customers might not have access to a payment method
A merchant’s payment gateway must be compatible with a variety of online stores and payment platforms. For instance, Alipay is much more widely used in China than payment methods that US customers may be accustomed to.
Additionally, prices may be higher for shoppers from abroad. While many payment gateway providers impose fixed transaction fees for both domestic and international trade, some do so at higher rates.
- Flaws in the security
Security must be the top priority in a world that is becoming more and more digital. Roughly two-thirds of customers would stop doing business with a retailer who had experienced a security breach.
Ecommerce Payment Gateway Examples
Some of the most popular payment gateway service providers are listed below:
Due to its stellar reputation with customers and the availability of numerous gateway options, PayPal is widely used as a redirect payment gateway.
Square is a provider of payment gateways and a credit card processor. In Q4 of 2021, the company reported gross payment volume of $46 billion, demonstrating significant growth. Although they do charge more for manual transactions, Square’s solutions are typically for small businesses.
A well-known provider of payment gateways, Stripe specializes in mobile e-commerce, SaaS, non-profit organizations, and platform-based payments. Additionally, Stripe can manage businesses with a high volume of transactions.
Apple’s payment gateway programme enables merchants to accept payments using Touch ID and Face ID within a mobile payment framework. Consumers who want to keep an electronic wallet open to manage their payments are a big focus of this.
Many other payment gateways permit merchants to accept Apple Pay payments, just like PayPal does. With the help of these services, merchants can accept payments from the nearly 1 billion iPhone.
Since there are 200 million Amazon Prime members worldwide, many businesses have found financial success using Amazon payments. With a variety of plugins readily available, including some for use with Big-Commerce, Amazon Pay is also customizable.
Your company will be in a better position to select the best option for your needs and add a new level of security that customers require when making an online purchase if you have a better understanding of price, function, and gateway security.
Consider how it integrates with your eCommerce platform, how it affects productivity, and how it affects the customer experience before choosing the first ecommerce payment gateway system that seems to tick all the boxes. Visit Your Merchant Services Rep for more information.