As the eCommerce market expands and online merchants arrive at record sales, operating an online business with an eCommerce payment gateway facilitates online sales and has become essential for most industries.
Along with the global eCommerce market launched to acquire almost $6 trillion this year, having the stability of mind understanding your credit card transactions are being processed without a trap can be an ambitious force in the expansion of your business.
What is an eCommerce payment gateway?
An eCommerce payment gateway is a software used by vendors to receive, handle, and process credit or debit card transactions online.
In simple terms, an eCommerce payment gateway is a mediator between online merchants and their buyers and the checkout platform you notice on online stores.
Why your online store requires a payment gateway?
Unlike a physical store, eCommerce merchants work exclusively on card-not-present transactions, which indicates they require a secure payment gateway to process all these online payments.
In acquisition to processing credit cards, an eCommerce payment gateway can also help in enhancing your online store’s prevalent safety. By using a safe payment gateway, businesses can reduce or eradicate fraud risks, lower chargebacks, and save customers’ credit card details from pirates. Because of this heightened security, payment gateways are necessary for online businesses.
By processing these transactions securely, eCommerce payment gateways can bypass security hazards to deliver customers with a slicked user experience and merchants with a more pleasing brand prestige and more efficient procedures.
How do eCommerce payment gateways function?
An eCommerce payment gateway is one of the critical performers in the world of credit card processing, as it encourages, transmits, and safeguards exposed credit card transactions.
Let’s split down how a payment gateway functions into six stages:
- The customer places an order and provides his or her credit card details on the checkout portal on a merchant’s website.
- When the card information is received, the payment gateway secures it and transmits it to the payment service provider.
- The payment processor then transmits the transaction data to the credit card network (Visa, Mastercard, Discover, American Express) to confirm the cost and provide an interchange rate established on the risk level of the transaction.
- The credit card association examines the charge to ensure. That there are sufficient funds present to complete the purchase and authorize the transaction. If there are insufficient funds, the organization declines the transaction.
- The transaction is approved or declined and the issuing bank forwards a response back to the payment processor. To the eCommerce payment gateway, and, eventually, to the merchant.
- After the approval and completion of the transaction. It takes 24 to 48 hours for the funds to be settled in the merchant’s account. The payment gateway supplies and documents all these daily transactions to be gathered. And generated invoice at the end of the business day.
However, this appears like a complex process, most of these steps (except the 6th one) take place in seconds.
How to prefer the right gateway for your business?
While there is a sort of eCommerce payment gateways to select from, they’re not all similar. First and best, you have to assess your business type to decide what are your requirements. Multiple factors will play a vital part in selecting which gateway is right for you. Such as the size of your business, transaction ratios, the configuration of your website, security necessities, and many more.
Moreover, there are versatile features you will see in every payment gateway. There are also amazing characteristics to examine that can significantly help your online business.
8 factors to evaluate for the best eCommerce payment gateway
- Security: PCI DSS compliance & fraud prevention
- Flawless checkout experience
- Cost-effective pricing structures and transparency in contracts
- 24*7 customer service
- Growth abilities
- Integrations to the invoicing system
- Personalization choices
The eCommerce smash and its effect on payment gateways
As online shopping crazes show no signs of quitting post-pandemic. It’s never been more essential to assure your website is safely and potentially processing payments.
With online transactions witnessing a surprising increase, the eCommerce boom had a direct influence on the payment gateway market. However, to satisfy the growing market, your payment gateway can be able to resist high transaction volumes, and present a sort of payment method. And receive all primary credit and debit cards.
Merchants should also persist up to date on customer behaviors, appropriate industry data, and eCommerce and payment processing trends.
Payment gateways are an essential tool for all merchants to successfully preserve up with the growing online shopping industry. By assessing your requirements and development objectives to determine the best eCommerce payment gateway for your business, you can integrate this software to save funds, enhance profits, and generate long-term success to win your competition.
The payment service provider is a vital part of your online business. It can also cause problems that make your business high risk. WebPays will equip you with a quick and dedicated eCommerce payment gateway. With this payment gateway, you can receive payments in your desired currency also. And your customers can also pay you in their native currency. Moreover, this payment gateway delivers alternative payment methods that will deliver a suitable shopping experience to your buyers.
So, WebPays is the right option as a financial counselor for your high-risk business across the globe. They offer the best payment solutions to the merchants and with complete support at any time. Except for all this. You will also notice a boost in your online business because of the payment solutions you will get from them. For further information regarding payment services, drop us a mail and connect us.