As part of your expansion into international markets, providing local payment methods is critical. Offering them enhances shopper satisfaction and increases conversion rates. A payment gateway manages all transaction details for you so your servers never come in contact with customer data; furthermore it ensures compliance with PCI regulations which is necessary when dealing with credit card transactions. When selecting the ideal gateway for your business, be sure to consider fully loaded costs, charges and contract terms so you can make an informed decision regarding which will provide optimal solutions.
Payment gateways serve as intermediary connections between customer banks and merchant banks, helping protect sensitive transaction data from being intercepted by hackers or cyberthreats during transmission. They are provided as a service by payment processors on behalf of merchant banks; as an integral component of any online business that accepts payments online.
As soon as a customer selects products they wish to buy online and clicks “Buy Now”, their browser encrypts payment information for security purposes before transmitting it securely to a gateway server. There, it is translated into an authorization code called an Authorization or Auth Code by the gateway and sent on through to merchant bank via credit card network for communication to issuing bank for further fraud detection procedures, after which either approves or rejects it back via gateway back to merchant bank and online store.
Once an Auth Code has been verified by its issuing bank, it enables funds to move from customer’s accounts directly into merchant’s. Merchant then ships out goods or provides services while receiving confirmation from payment gateway that payment has been completed successfully.
When selecting a payment gateway, ensure it supports all the major currencies used in your target market and offers multi-currency payments. Expanding globally will increase sales while giving your company an edge against competitors.
Checking a gateway’s support services is also worthwhile, and they should offer technical and customer service in your time zone and language, along with comprehensive documentation on their systems and processes.
Consider whether the payment gateway can integrate with other solutions you use to manage your business before selecting one. For instance, if you employ a physical point-of-sale (POS) system, choosing one that can integrate will streamline bookkeeping and customer tracking more easily. In addition, look for one supporting 3-D Secure as it adds another layer of protection when shopping online using credit or debit cards; each transaction uses its own password that’s unique from card service provider; also it is crucial to check security policies, procedures and certifications prior to entering any contract before signing any binding contracts or signing contracts.