An ECommerce Payment Gateway is the equivalent of a cash counter or a collection counter at a retail outlet. Simply put a Payment gateway is a software that runs on your ECommerce site and ensures that the money is collected from your customers and sent to your bank account.
A good eCommerce payment gateway will do more than just transfer the customers payment to your account. It will:
- Provide an authorization to complete the eCommerce transaction once the payment has been successfully received.
- Send settlement messages to both the buyer and the seller
- Maintain reports of all successful and failed transactions
- Ensure that the financial transactions and genuine and prevent fraudulent transactions
How Does It Work?
Once a customer decides to pay for the products or services that she wishes to purchase:
- The order details are securely transferred from the eCommerce platform to the payment gateway.
- The Customer decides and selects a method of payment which could be a credit or debit card, bank transfer or even a wallet.
- Once the customer fills the payment data on the gateway, the data encrypted and sent to the issuing bank or card issuer (VISA, MASTER, AMEX etc), and a request for authentication and authorization of the transaction is initiated.
- Depending on whether the authentication is successful or not the transaction is either authorized or declined by the card issuer or the bank.
- This result is transmitted to both the seller and the buyer by the payment gateway
- If authorized the bank transfers the money to the payment gateway.
- The payment gateway then transfers the money to your account.
What Should You Look For When Selecting A ECommerce Payment Gateway?
No business can afford to make mistakes in financial transactions. So be careful when you choose a payment gateway.
Origin Consultants choose eCommerce payment gateways for their clients if the solution includes:
- All possible payment options including all issuers of wallets, debit cards, credit cards and of course Online Bank transfers. You never know how your customer may wish to pay.
- Allows transactions in multiple currencies
- Has a convenient transaction process for the buyer at the front end and the seller at the back end.
- Provides instant notifications on both successful and failed transactions to customer and merchant.
- Has been approved by the financial regulators, is certified, is safe, fraud proof and complies to all security and regulatory standards.
- Offers a plan that is suitable to your immediate business volumes and provides for increased volumes in future.
- The fixed charge and transaction fees are viable for your business
- The support provided by the payment gateway team
Contact Origin Consultants to help select your eCommerce payment gateway for your online transactions.