A Payment Gateway is an eCommerce application service provider that authorises credit card payments for online businesses & online retailers. It facilitates the transfer of information between a payment portal like website, mobile phone or IVR service) and the front end processor or an acquiring bank.
It transfers the key information between website or mobile device and the payment processor (banks) and vice versa. So if you decide to integrate payment gateway into your website, try to make the user experience smooth.
To ensure the transaction’s safety and protect your website from fraudulent, a payment gateway encrypts all sensitive information such as credit card number, expiration date and CVV code.
These payment gateways take your customers away from your website to complete the payment transaction and then redirect them back once the process is complete. They take care of transaction’s security and are quite easy to integrate into your website. The most well-known hosted gateways are PayPal, Amazon Pay, SagePay and many more.
These payment gateways can smoothly integrate into your website and keep the user only at your store or platform without taking them away and paying somewhere else.
Since they work on your server and usually store your customer’s credit/debit card information. So, you must ensure fraud protection, secure cardholder information storage and PCI-compliance.
The majority of non-hosted gateways come with extensive APIs and readily available modules to integrate into your shopping cart.
There is a vast choice of payment solutions out there.
• You may choose hosted and non-hosted payment gateways.
• Find ready modules to integrate into your website.
Some off-the-shelf services charge per transaction and some charge fixed cost on a monthly basis. Some are flexible with the businesses they work with and while some have few restrictions.