All of us have heard about Payment gateways from some or the other person around the corner but very few of us know the technical meaning of what a payment gateway is?
What is a payment gateway?
Payment gateway is a type of merchant service provided by an e-commerce application service provider which authorises the transaction payment done using credit,debit or internet banking online.
Payment gateways are usually provided by banks or through special service providers as service for payments.
It acts a mediator between a payment portal that can be a website etc. and a acquiring bank accepting the transaction payment.
How does payment gateways work?
The moment you click on pay now/buy now/order/place order etc. the role of payment gateway comes in action:
The payment gateways:
- Verifies the billing information of each customer and the transaction
- Verifies funds for each payment request made from a customer
- Approves requests, allowing the transaction to be successful and confirmation through a number
The pre- requisite for payment gateways is a secured and verified website, documentation like ID proof and proof of existence of business etc. to be uploaded and then the received details of payment gateway has to be integrated.
Types of payment Gateways:
The evolution of payment gateways has seen a lot of being a classic to modern.
In the classic mode of payment gateway, the customer/business owners interested in availing payment gateway facility is required to open a new merchant account for this purpose.
In a modern way, the gateways do not require any separate merchant accounts but just integrates or links itself to the account details provided. However, they come with a higher fee charges. An example of the modern gateway is PayPal.
The bigger stores and business goes for the traditional i.e. classic mode of payment gateway as it gives them better costing than a modern gateway.
Payment gateways are also classified in hosted and integrated.
Hosted gateways redirect customers to the payment processor’s platform to input their payment information. An example is paypal.
Integrated gateways connect your eCommerce websites via API provided by the gateway. This requires a lot of information to enable the use of this method.
There are numerous payment gateway service providers across the world and are associated with e-commerce platforms.
The few names are paypal,2Checkout, amazon pay, payment express, eWay, global payments, securenet etc.
Payment gateways in India
India too has its own market players in providing merchant desk gateways like ccAvenue, citrus, payu etc.
Since most of the economies including India is going cashless and on plastic money the importance and market of such payment services is going to be on a boom. Also, the conventional ways of visiting a market physically is changing too hence people opt for online purchases and business modes too operate online. This is where the payment gateways are being too much important.
The feature of Payment gateway for tech support quickr is becoming more customer centric where it’s an easy applicability and integration is provided to users with full technical support from the team to monitor your transactions in a highly-secured way.
The benefit is that in case the money is debited wrongly through any transaction it can be refunded all thanks to these payment gateways which keeps every minute track of the transaction status and prompts you for unsecured or failed transaction if it senses the same through the technologies being applied.