Payment Processing: How Payment Gateways Enable Payments

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Online payment services have incorporated a revolutionary approach to leading business and staying in trustworthy customer relationships. Over eighty percent of transactions in the United States are predicted to be contactless and cash-free. By 2025, the values of digital transfers are also expected to increase by over fifteen percent.

Considering this intensifying interest in convenient and instant payment tools, it is only natural for stores and other organizations to take a deeper insight into the current market for business payment solutions. Visa and MasterCard are top-notch options, but the ever-increasing industry divergence makes their services insufficient to satisfy an average customer’s potential need.  From this perspective, applying for deals of a payment gateway is a wise decision. Stay tuned to find out more about online payment processing for business objectives.

What Is a Payment Gateway?

This term describes an instrument for streamlining and accelerating money transfers in the online borderless and cashless world. Simply put, it is a commercial platform designed to handle credit card processing for e-commerce websites and land-based establishments. Instead of literally registering each and every cash provider on your own, you get access to an all-in-one electronic equivalent to the bundle of currencies and payment services.

In typical financial relationships between sellers and buyers, there are also so-called acquirers and issuers — financial institutions that support a target business and customers accordingly.

To simplify this complicated chain, interested parties can establish a payment gateway. This will enable you to authorize, capture, and settle divergent transactions without challenges:

  • An authorization procedure determines if a consumer has sufficient resources to make a purchase. It excludes the direct relocation of funds. The merchant’s task is to confirm the customer has a financial opportunity to cover the cost of a purchased item/service. This type of payment is preferred when manufacturing or shipping packages takes a while.
  • A formerly allowed transaction is “captured” when it is actually processed, and money is transferred to the company bank.
  • When it comes to a sale payment, the features of the aforementioned methods are combined. You will need to authorize a customer’s intention to pay, but the funds won’t be taken immediately, as in the case of captures. If you tend to subscribe to particular pages/products or get e-tickets, this method will be there for you.
  • When an order is terminated, a seller must proceed with a refund procedure.

Reasons to Choose Payment Gateways

Let’s consider the efficiency of payment gateways for businesses briefly:

  • Options to pay — divergent and secure payment tools are at your disposal 24/7.
  • Security — payment gateways and processors, double the effort to secure financial operations and increase the speed of payment processing.
  • Suitability — in card-not-present situations, such transactions are lifesavers. It enables both businesses and customers to switch between different providers intuitively and make their online transfers more personalized.

It is beneficial for any online business to level up its financial relationships with prospective and regular customers. Taking advantage of fast and hassle-free internet payments is one of the methods. Thanks to a payment gateway technology, monetary transactions are held from a consumer to a vendor by distributing economic statements to the required parties for transaction authorization. In practice, a company receives a legal opportunity to represent a wide range of currencies and payment methods without establishing each desired channel separately.

Online Payment Gateway Example: Solidgate

While searching for the right solution, you have to consider your target audiences’ interests first and how a particular payment gateway solution can align with your customers’ needs and business objectives. No matter how advanced a solution is, it will be out of your complete control if it doesn’t have the required characteristics. One of the biggest disappointments happens when a solution isn’t universal and deployment isn’t possible. Thanks to the impressive versatility and flexibility of Solidgate, compatibility issues and related problems don’t take place. This service considers multiple business needs:

  • With more than one hundred fifty currencies on board, the gateway platform will accommodate your business to boost sales rates in different markets.
  • Your funds are protected by SSL protocols, and other encryption means. What’s more, such premium-class features as chargeback management will obviously protect you as an online business owner.
  • They offer several service and price packages, so this online payment gateway is a good idea for both small-scale businesses and large enterprises.

All in all, it is a convenient solution to enable unique and local payment methods across the world and satisfy the requirements of your consumers.


Wrap It Up

The major difference between traditional payment methods and vendors like Solidgate is how both exclusive and all-inclusive their services are. You can utilize numerous financial solutions and get access to several markets by optimizing routing through just one chosen transaction tool. Instead of getting separate support for credit cards or digital wallet transfers, you achieve a multifunctional system for maintaining, supporting, and analyzing your interactions with third parties with beneficial automation features.

The payment gateway process is simple and doesn’t require significant efforts to install and adopt it — the major part of the duties are performed by service providers. Don’t miss a chance to establish more transparent financial bonds with your customers and win their loyalty in the highly competitive e-commerce environment.

FAQ

How should I choose the best payment gateway?

The ideal service of the kind has to be selected in dependence on your business scale and growth plans, as well as what niche you occupy and how you would like to sell your goods. For online businesses, it is important to maintain stable e-commerce connections, so Solidgate or PayPal will be the right answer. Of course, your palette isn’t limited. While Braintree might be an exclusive option for novice vendors, Square will help brick-and-mortar stores to maintain land-based operations too.

Are payment processors and gateways the same?

Although some of their functionality principles coincide, it doesn’t make them interchangeable notions. While payment processors examine and send transfer details connected to a target account to an issuer (a particular bank establishment), gateways are more independent. They approve money transactions between sellers and buyers and perform the role of the so-called point-of-purchase networks.

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