Payment Gateway Providers; A Concise Encounter

by Agnishekhar on 16/02/2018
Payment gateway providers
While launching an online venture, you have to be mindful of various aspects that affect the business. These can range from the adherence certain regulatory norms to researching the current market scenario. One such factor that requires attention is the setting up a payment gateway for your online business.

Think of payment gateways as the sale terminal you will find at most retail outlets, only virtual. A payment gateway acts as a buffer between an e-commerce merchant and the payment processing bank. So, when customers place an order, they are redirected to a payment portal where they enter their card details. The card details are then encrypted, processed, and the transaction data is shared with the issuing bank to be verified. Once verified, the transaction is deemed complete.

There are many options when it comes to choosing the best suited payment gateway provider for your business. Let’s take a quick look at the different types of payment gateways that are available.

Hosted payment gateways:

Hosted payment gateways redirect the user from the merchant site to the payment gateway provider page. This is where the user enters their payment information. Once the transaction is completed, the user is redirected to the merchant site.

This is one of the most commonly opted payment gateway types and has a proven advantage in terms of customer security. That being said, since the gateway is hosted on the payment gateway provider page, end-to-end customer experience cannot be controlled with this kind of a payment gateway.

Self-hosted payment gateways:

In this case, all payment details are requested at the merchant site itself. The data is then shared with the payment gateway provider in a specific format where the final processing takes place. This type of a gateway allows the merchant site to control the customer experience.

However, since the payment details are collected on the merchant site, it calls for the extra effort of abiding by security protocols.

Local bank integration:

Similar to the hosted payment gateway, this kind of a payment gateway also redirects the user to a payment gateway provider page. Unlike a hosted payment gateway scenario, the transaction is completed directly with the bank.

This kind of a gateway is simple and effective for small businesses with a one-time transaction requirement but is not suitable for e-commerce payment systems since refunds are not supported through this kind of gateways.

One of the most important factors to bear in mind while choosing a payment gateway is the pricing. Payment gateway providers charge fees, either as monthly usage charges or on a per-transaction basis. Some even provide free service. It is very important to consider the overall charges and functionality of a payment gateway provider before choosing one.

Amazon, the dependable

Choosing an online payment gateway can seem like too much while setting up your e-commerce business with all the security concerns. Partnering with Amazon allows you to completely bypass this difficult process. Register as a seller on Amazon and Amazon Pay will help increased conversions, fraud protections, and scale your business. Amazon is the one-stop solution for all your concerns.
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