Table of Contents
Get to know Payment Gateway: What is it?
The main functions of Payment Gateway on online stores
How many types of Payment Gateway are there?
Why do online stores that open E-Commerce websites need to use a Payment Gateway?
Payment Gateway options that merchants can choose to use
summarize
Get to know Payment Gateway: What is it?
Payment Gateway is a payment system or service that acts as an intermediary in online payment processing between customers and online stores. It is considered a helper for online sellers to facilitate checking customer payments. Payment Gateway is responsible for receiving payment information from customers and forwarding it to credit card service providers or related banks to check and approve the store's financial transactions, which will organize the various payment receiving systems to make them easier to check.
Learn more about what is E-commerce and how important it is to businesses today.
The main functions of Payment Gateway on online stores
As your online business grows, orders will certainly increase, so you’ll need a more systematic way to manage customer payments. Of course, the various payment gateways that online shop owners skype database can choose from will handle payments as follows:
Receive payment information : The system will receive payment information from customers such as credit/debit card number, expiration date, and CVV.
Data Encryption : For security reasons, payment information is encrypted before being transmitted over the Internet.
Forwarding Data : The system forwards encrypted payment data to the credit card provider or the relevant bank.
Review and Approve : The credit card provider or bank will verify the accuracy of the information and approve or deny the transaction.
Transaction Result Notification : The system will send the transaction result back to the online store and customer to confirm whether the payment was successful or not.
How many types of Payment Gateway are there?
Let me tell you that for the Payment Gateway system, there are 2 formats that online stores can use. Let's get to know the Payment Gateway formats, both Bank and Non-Bank.
Bank Payment Gateway
Bank Payment Gateway system is a service provided by a bank or financial institution that provides online payment services to online merchants and customers. Its role is to manage and process payment transactions via credit/debit cards or other payment methods supported by the bank.
Non-Bank Payment Gateway
Non-Bank Payment Gateway system is a service provided by companies that are not banks or financial institutions to handle online payment transactions. These companies act as an intermediary to process payments between customers and online merchants.
Why do online stores that open E-Commerce websites need to use a Payment Gateway?
As your online business grows, your payments need to support multiple payment channels to make it convenient for your customers. We recommend that online stores use a Payment Gateway for the following reasons:
Transaction Security
Of course, the Payment Gateway systems of various companies that create systems must have data encryption and security measures to prevent data theft from malicious individuals, such as Man-in-the-Middle attacks or credit card data theft, making stores safer and more trusted by customers. Having a secure Payment Gateway system makes our stores more trustworthy. Customers will feel confident in transacting with stores that have secure payment systems.
Convenience of payment
Currently, the development of various Payment Gateways that are available allows customers to pay in various ways, such as credit/debit cards, e-wallets, and bank transfers, which makes payments easier and more convenient. In addition, the Payment Gateway system processes payments quickly, allowing store owners to check payments immediately, reducing the time waiting for payment approval, making customers more comfortable.
