What is an online payment gateway? It is a service that authorizes a payment service to take payments from your e-commerce site. An online payment gateway acts as a third party for both the online merchant and the payment gateway and works as an intermediary for the online consumer. The payment gateway then validates and signs the electronic transaction by authenticating the payment gateway with the authorized credit card company or the digital certificate authority. Thus, the whole process of an online payment gateway is straightforward.
Third-party companies offer their services for the convenience of e-businesses for accepting credit cards online and for real-time processing. However, not all of these companies are providing a high level of services. When you need a payment service provider with more advanced features such as multi-currency support, order management system, custom web addresses, etc., selecting a service provider from a trusted source is suggested. To get started, you should find out the authenticity and reputation of a reputable online payment service provider.
One of the best eCommerce payment solutions available today is merchant accounts. These are offered by most of the companies. These allow you to accept payments by credit cards online. However, the charges for these accounts are usually high. To determine whether a particular company offers the best merchant account, you should contact them and request a free demo account.
Online Credit Card Processing
Online payment gateways also process credit cards. However, there are some differences in the way they process these cards. This is the second step that you should follow when setting up your eCommerce business. Some of these payment processors include PCI/PABP compliant systems, while others do not. If your eCommerce site does not feature a PCI/PABP-compliant system, it might not fetch you good returns on investment. Hence, this is the second step that you should consider.
Secure Socket Layer
A payment gateway that enables online transactions of secured credit cards usually utilizes SSL technology to carry out the transaction. Security prevents your transaction details (cardholder details, financial information, etc.) from being accessed by hackers. In case of any security breach, only your private information (not those of the merchant) remains confidential. Thus, this step is significant for your eCommerce site.
In summary: Online payment gateways are used to process credit cards. There are two primary differences between them. First, a primary difference lies in the way that they store cardholder information. Second, a primary difference lies in their ability to accept electronic mails and electronic checks.