What is a payment gateway for online stores?( ecommerce payment solution)
Debit and credit cards are the most popular methods of payment for online purchases, thus the ability to take them is crucial for eCommerce websites.(ecommerce payment solution)
Due to their extensive use, it would be challenging for an eCommerce website to function without supporting debit, credit, and cards.
By authorizing credit cards or direct payments, payment gateways are services offered by organizations that process credit cards that enable online payment processing for small- to medium-sized enterprises and eCommerce websites.
A bank or an online payment service provider like Authorize.net, PayPal, or Stripe can be the one providing the payment gateway.
By exchanging data between a payment portal (such as a website, mobile app, or shopping cart software) and the payment processor or acquiring bank, a payment gateway facilitates a payment transaction.
Given the range of payment alternatives clients have, it’s essential for businesses to take into account all methods of payment to guarantee a great customer experience.
A Discover Card study indicated that when their preferred payment option is not available, 24% of American customers abandon their shopping cart, and 50% of online buyers surveyed cited a choice of payment alternatives as a crucial aspect when checking out online.
Merchants may lower shopping cart abandonment by integrating eCommerce elements like shipping, order tracking, and upgraded payment gateway services that produce a more seamless checkout experience.
How payments are processed(ecommerce payment solution)
When a consumer puts an order on an eCommerce website with a payment gateway enabled, a payment gateway completes a number of actions to execute the transaction.
The information to be sent between the customer’s web browser and the eCommerce website via a secure connection made over Hypertext Transfer Protocol Secure (HTTPS) that is encrypted using Transport Layer Security is encrypted when the customer places an order on an eCommerce website by clicking the “Submit Order” or equivalent button (TLS).
The payment gateway receives the transaction details from the e-commerce website. Another secure connection has been established to the payment gateway’s payment server.
Bypassing the eCommerce website’s system, the payment gateway may allow the transaction data to be transferred straight from the customer’s browser to the payment gateway. Without diverting the customer off the website, this lowers the merchant’s PCI Data Security Standard (PCI DSS) compliance obligations.
The payment gateway sends the transaction information to the payment processor employed by the merchant’s acquiring bank after converting the transaction data from XML or JSON to ISO 8583 or another message format recognized by Electronic Funds Transfer (EFT) switches.
The credit card association (Visa, MasterCard, or American Express) is then notified of the transaction by the payment processor. When using a Visa or Mastercard, the transaction is forwarded to the appropriate card issuing bank by the card association.
The bank that issues the credit cards receives the request for permission, checks the amount of available credit or debit, and then replies to the payment processor with a response number (I.e.:: approved, denied).
The eCommerce website receives the response from the payment gateway and interprets it as a pertinent response before sending it back. Finally, the order processing can be completed by the shopping cart software.
Features of payment gateways(ecommerce payment solution)
By updating your shopping cart software to properly utilize payment gateway functionality, you can significantly boost the efficiency of your eCommerce website.
Average performance enhancements for an eCommerce website:
225% More conversions, 112% More repeat business, and 54% fewer carts have been abandoned
For instance, the following payment gateway functionalities are free when using Authorize.net’s payment gateway.
Features of payment gateways include:
- Online payments are secure
- Consumer payments
- Through a virtual point of sale terminal, mail and phone orders
- Contemporary fraud detection
- Management of customer information
- Recurring billing automated
- Easy checkout
- Invoicing
- Well-documented and simple to use Interface for Application Programming (API)
You have the choice of using a Virtual Point of Sale (VPOS) solution for retail locations or picking from a wide range of third-party POS systems that have already been pre-integrated.
You can accept orders from your clients over the phone and by mail using a virtual terminal.
The free mobile app for the payment gateway accepts mobile transactions as well.
There is a fully integrated electronic check payment mechanism available for checks that accepts and processes payments directly from bank accounts via your website or the Virtual Terminal.
Although credit and debit cards are still the most common way to pay, the Authorize.Net API supports a number of additional payment methods, including PayPal and Apple Pay.
Intelligent Fraud Detection(ecommerce payment solution)
Numerous payment gateways offer capabilities to instantly and automatically check orders for fraud before sending an authorization request to the payment processor.
Geolocation, velocity pattern analysis, “black-list” lookups, delivery address verification, computer finger printing technologies, and fundamental Address Verification System (AVS) checks are some of the methods used to identify payment fraud.
The payment gateway’s fraud management tool allows you to view suspicious transactions and decide whether to approve or reject them. You can proactively make changes to lower your risk and expense by discovering and understanding the reasons why transactions are being rejected.
Configurable fraud filters are a feature of a payment gateway with enhanced fraud detection capabilities. These filters are created expressly to detect, manage, and stop fraudulent transactions.
Recurring Billing Automated
A useful and user-friendly solution for submitting and managing recurring, or subscription-based, transactions is automated recurring billing (ARB). Easy recurring billing systems simplify billing processes, increase billing security, and do away with the inconvenience of having to manually enter billing or payment information for each transaction, regardless of whether your company relies on subscriptions or has repeat clients.
Safeguarding customer data management
A payment gateway may also allow you to create and save client payment and address data for later use, in addition to facilitating a frictionless checkout for your consumers.
You can tokenize and store sensitive payment information from your customers on the payment gateway’s secure servers, simplifying PCI DSS compliance and the payment process for repeat business and recurring transactions. This is possible with a payment gateway that has a Customer Information Manager (CIM).
For future orders, customers can save their billing, payment, and shipping information. For added convenience, profiles can offer a variety of payment options and shipping options. Additionally, you can use the merchant interface to manually manage client profiles and process transactions. You can also use the application programming interface to combine the merchant interface with your website or app (API).
Besides, you can better match customers’ tastes in the future by analyzing the saved customer profiles.
Payment data can be analyzed to reveal inefficiencies in your payment processing workflow and to have a better knowledge of user activity on your website. This information may reveal obstacles to checkout, which may be used to accommodate future consumer wishes.
Returning customers enjoy a simple and quick checkout process thanks to recognition of their previous purchases. Morever, tokenization technology employs the token connected to the customer to get the saved payment information from the secure servers of the payment gateways when a returning customer approaches the checkout and wishes to pay. This reduces your risk and effort in securing the payment and assures the functionality of the checkout without stepping outside of what is comfortable for your customers or what is consistent with your brand.
Easy Checkout
By copying and pasting a little amount of code, Simple Checkout lets you to quickly create “Buy Now” and “Donate” buttons for your website. For websites that accept donations and businesses that normally only sell one item per order, Simple Checkout is a perfect option.
Well-documented and simple to use Interface for Application Programming (API)
The ability to take any sort of payment from a website to an app and integrate your eCommerce website with the payment gateway’s API is made possible by a payment gateway’s extensive and scalable API. The payment process is completely under your control, and your consumers stay on your website.
Conclusion
Enhancements to the checkout process offer unmatched prospects for increasing conversions on eCommerce websites.
Your eCommerce website can achieve great results in terms of more conversions, content customers, and less shopping cart abandonment by selecting the appropriate payment gateway and utilising the integrated payment processing tools properly.
Source: ecommerce payment solution , ecommerce payment gateway
