BUSINESS

Benefits Of Payment Gateway For Your Business

With the rise in online shopping platforms, payment gateways have played a key role in carrying out the payment processes. Payment gateways are a crucial component of e-commerce that helps in running the payments ecosystem smoothly as they enable consumers and businesses to make online payments. 

Payment gateways act as a safe intermediary between the merchant and the customer, ensuring the transaction is carried out securely and quickly. These days, payment gateways come with EMI options that help customers who might not carry out a one-time payment. 

HOW PAYMENT GATEWAYS WORK

Now that we know what a payment gateway is let us see how a payment gateway works. The following steps illustrate how a typical payment gateway assists customers and businesses carry out monetary transactions.

  • Step 1: The customer places an order on the website and then clicks Submit, Checkout, Pay Now or an equivalent button. 
  • Step 2: After clicking on the checkout button, the website or e-commerce platform takes the customer to a payment gateway where they choose their preferred payment method and enter all the details about their bank or the card they are using. The payment gateway takes the user directly to the issuing bank’s website, asking for authorisation to conduct the transaction.
  • Step 3: After the payment gateway approves the transaction, the bank verifies the customer’s account balance to see if the transaction can be completed.
  • Step 4:The payment gateway notifies the merchant accordingly. The merchant will send an error message to the customer, letting them know there is a problem with the card or the account if the bank responds negatively. The merchant seeks the transaction from the bank if the bank portal responds ‘Yes’.
  • Step 5: The bank settles the payment with the payment gateway, which settles the payment with the merchant.
  • Step 6: When this process gets completed, the customer receives a confirmation message. 

BENEFITS OF USING PAYMENT GATEWAYS

The use of payment gateways has been a boon for e-commerce platforms. With technological advancements, we have witnessed an increase in the benefits of using payment gateways. Mentioned below are some of these payment gateway benefits. 

  • Safe transactions – Security is a prime concern when it comes to payment gateways. To ensure security, it encrypts data provided by the user, such as credit card and bank information. Secure payment gateways use industry-standard encryption to protect sensitive data, protecting both merchants and consumers against fraud.
  • Increased customer base – A payment gateway can enable a store to be accessed by shoppers around the globe and can significantly increase your customer base. Payment gateway with EMI options is also helping in increasing the customer base. 
  • Cart included – Shopping cart software is often bundled with payment gateways. The software allows the customer to add and check out products with the click of a mouse. It calculates items’ prices, sales tax, and shipping charges without your or an employee’s presence.
  • Processes transactions faster – Payment gateways are much faster than manual processing as most processes are carried out on an online platform. This helps customers in purchasing without the hassle of long waits or lines.
  • Additional convenience – By having a payment gateway, a store makes it possible for the customers to shop at any time of the day or night. Also, EMI options make it convenient for people to buy things that they want to. 

If you want to look for a good payment gateway, then you should look for the following features in it:

  • High Success rates
  • Multiple modes of payment
  • A quick and easy onboarding process
  • A security system that complies with PCI-DSS
  • A dashboard that is both insightful and intuitive
  • Competitive pricing options
  • Free setup
  • Free maintenance

You should also consider a payment gateway that offers the following additional features:

  • Provides businesses with a variety of products and features to accept payments without requiring them to have a website or an app
  • Ability to accept periodic payments for subscription products offered by a business
  • Offering customers EMI options and discounts, as well as running offers

Issues like delayed deliveries, late payments, and inadequate payment processing systems stop businesses from growing. Using the right online payment gateway will assist businesses and e-commerce platforms in improving their performance dramatically.