A Brief Guide to Online Payment Gateways

All businesses need a way to secure customers’ payments, but with so many options, it’s a difficult choice for a new entrepreneur to make. Not only do they have to consider the logistical and technical issues involved in setting up a payment gateway, they must think about customer convenience and data security. Read on to learn more about online payment gateways and their role in e-commerce.

Payment Gateways: Why Are They Necessary?

A payment gateway is a third-party service that authorizes merchants’ credit card transactions. When a seller captures a customer’s info, they send it to a gateway. From there, the info goes to the seller’s bank and then the issuing card company. If the issuer provides the right response the transaction goes through. Consider the following factors when choosing a gateway.

Encryption Standards

It’s important for sellers to consider their chosen payment gateway’s encryption standards. After all, these companies handle customers’ sensitive info, and a minor breach can damage a seller’s reputation. A secure gateway reduces risk, and, as such, can offer reduced processing fees. When payment acceptance is automated and secure, there’s less chance for human error.

Speed

Every payment gateway offers a different speed. If a seller wants to maximize users’ experiences and complete their transactions as quickly as possible, they should choose processors who can authorize credit cards within seconds. Transactions may take several days to complete and settling a day earlier may be important. Look for a company that can quickly secure money for clients’ accounts.

Security and Fraud Detection

Some gateways specialize in security and fraud prevention, and they help clients proactively identify illicit activity before it goes too far into the payment process. If a seller plans to handle large transaction volumes, this is particularly important.

While there’s no such thing as the ideal payment gateway, customers should strive to find the right fit for their companies. For some startup owners, security is a top priority; for others, the cost is a major concern. Review several options before deciding and ask mentors for advice. To learn more about a potential all-in-one payment platform, read this BlueSnap Review today.

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