A credit card payment gateway encrypts information such as the card number, making transactions between the business, customer, and payment processor more secure. Added security benefits a business by creating a reputation for being a safe business to purchase goods or services from in this manner.
What do credit card payment gateways do?
A credit card payment gateway aids in the transfer of information between the business and the banks. If a customer orders a product or service, the credit card payment gateways act as the middle man in the transaction, transferring information to the card company or issuing bank, then receiving the response from there and forwarding it back to the business.
This includes the response of approval or decline, along with a code for any declined request. The code denotes the reason for a declined sale, letting the customer know if it was due to insufficient funds, an unavailable bank link, etc.
What are the types of card payment gateways?
There are three main types of payment gateways. One is the COM based interface, which will require you to install some DLL software. Also, many web sites may require that you gain a SSL certificate for this type of gateway.
Another gateway type is the XML transport gateway. This gateway works much like the COM based gateway, but does not require installing DLL software. This type does require a dedicated SSL certificate, just as many sites require for the COM gateways. Internet payment gateway is very important for any online business.
The third type of gateway is the form based gateway. This is the most common type of gateway used, as it does not require extra software, but as in other cases, it may still require a SSL certificate. This is considered a more secure gateway as it directs to an external server for processing.
What are the advantages and benefits of card payment gateways?
Security is the most important benefit of using credit card payment gateways. Payment gateways are safer, with credit card information being sent directly to the bank for verification rather than being stored. In addition gateways process credit card information in real-time, creating a faster process.
Gateways enable money to be deposited into your bank account instantly, minus a small merchant account fee, protect your customers information with encryption, and security against fraud. Faster processing encourages customers to return as there is less waiting around, making their busy lives that much more efficient.
Overall, using a payment gateway is a good choice due to the security, speed, and serviceability of them.