Online payment gateway is helping the merchants to grow their business. It is an inextricable part of online transactions made using credit cards or debit cards. It also plays an important role in the case of mobile wallet transactions. The COVID-19 has shown us the importance of accepting payments online. If you are running an offline store and accepting cash transactions, you have probably faced a lot of problems during the pandemic situation. Well, the situation has not become normal yet. The consumers are avoiding cash transaction. Moreover, they are preferring those businesses that accept cashless transactions. There is no doubt that COVID-19 has hampered your business. Therefore, this is the right time when you should start accepting online payments from your customer.
Online Payment Gateway
Well, accepting payments online is completely different than offline transactions. There are certain things that you need to pair with your business in order to start accepting online debit card payments and payments made using mobile wallets and credit cards. However, online payment gateway plays one of the most important roles in the ecosystem of overall online payment. Therefore, if you are new to this environment, you will have to know what an online payment gateway is. We at Rapidcents can understand the mindset of the new merchants. There are a lot of misconceptions inextricably associated with online payment. We have elaborated everything that will clear these misconceptions.
The online payment gateway is basically a kind of merchant service. You will get this service from your credit card processors. However, in order to enable this option, you must have a merchant account. After having a merchant account, you can integrate the online payment gateway to your online marketplace.
Important Things Associated With The Online Payment Gateway
Well, there are various things or actions that one payment gateway does. These are deeply associated with the payment gateway. We have highlighted these here. So, you should run into the following points:
- Encrypting the credit card or debit card transaction data is one of the important things that the online payment gateway does. Yes, you have read it right. It makes the online transaction secure and safe. It securely sends the encrypted user data to the payment processor from the browser of the users.
- The authorization request is another thing that the online payment gateway does. The financial institution that issued the card to the customers checks the fund available in the customer’s account. After this, the bank that issued the card to the customers approved the transaction. Then, it sends the approval information to the brand that issued the credit card to the customers. Then, it sends the same to the merchant processor solutions. After getting approval from the financial institution, the online payment gateway follows the authorization request and proceeds with the card transaction.
- After getting authorization from the financial institution, it allows the interface and website to complete the transaction.
Payment Processor Vs. Payment Gateway
Most new merchants get confused between the payment processor and the online payment gateway. Well, there is a huge difference between these two. The online payment gateway is a kind of service that the payment processor provides. The online payment gateway securely sends the details of the transaction to the merchant processor solutions. On the other side, the merchant processor solutions deal with the credit card company and the bank that issued the card for the transaction to the customers. The payment processor sends the card transaction details received from the online payment gateway to the other institutions. The company that issued the card receives the information from the payment processor. Then, the financial institution that issued the card receives it from the card brand. Finally, it approves the transaction. Then, the payment processor receives it from those institutions.
If you want to start accepting online card payments, you must have a merchant account. There are many payment processors that offer merchant account. Different processors come up with different card transaction charges. Depending on the requirement of your business, you should choose the payment processor.
Grow Customer Base Easily
Well, if you enable an online payment gateway in your business, the customers will not have to come to your store. They can make transactions sitting from their convenient places. Amid this pandemic situation, people are staying most of the time. So, in such a case, your customer base will not be affected. The existing customers will make online transactions in your business. They will also promote your business in their personal circle. Thus, you can grow your customer base very easily.
If you pair the online marketplace with the online payment gateway, the credibility will be increased. The customers will see the name of the popular credit card brand on your online marketplace. It will actually increase the value of your business.
Not A Rapidcents Merchants
So, if you are looking for a payment processor for enabling an online payment gateway, you can get in touch with Rapidcents. It is one of the best platforms that will provide all the solutions regarding online payment.