A payment gateway is your final and last stage of the conversion funnel. What if discrepancies arise when a client proceeds to pay using a credit card or a bank card? Not all e payment solutions are compatible together. Your customer may like to make a payment using an HSBC card but isn’t able to do since you accept cards approved by another bank service. As a result, it’s important to commit some time exploring the several types of support providers available in the marketplace before incorporating it into an e-commerce site. Payment chip and payment gateway are essential characteristics of an efficient small business site.
Which is the best option for my business?
But it is a huge landscape to discuss, which might get lengthy and time intensive. The first thing we must talk about and comprehend is whether or not we need both Payment chip and payment gateway. Both are very different regarding their functionalities and the line between both became blurry as of late. Nevertheless, recently most firms have come up with providers offering access to the two. You may depend on one brand for the services. But both payment solutions have their differences, which are the next.
- Payment Gateways – Payment gateways are 3rd party tools that merchants use to take payments from customers online. In accordance with the PCI, payment gateways need to ensure that all client info is kept completely secure. The term mainly represents major players like Mastercard, Visa, Amex, Discover, etc. Other than that, payment gateways also offer that pliability of payment types, but several things will differ with regards to payment processors.
- Payment Processors – The payment chip acts as a middleman for processing the transaction. The payment processor is accountable for. Managing the relationship between the company and the credit card providers – Managing relevant client data like personal data and the financial information – Driving a positive transaction process by crediting your account and also debiting the consumer – Transferring the fund directly into the banking Account – Choosing a Payment Gateway and also Payment Processor – The process of choosing a payment gateway and a payment chip can be a source of confusion.
Things you need to know
There are certain things which you need to contemplate when deciding on a payment gateway and also a payment chip. As a merchant, you will need to think about: Seamless Process – There are some payment gateways that allow direct payment onto a retailer’s site while some payment gateways transfer the client directly to a different site for entering those payment details. If you are the retailer, then its entirely up to you to decide where customers would find it more comfortable. The benefit of having a smooth process is which it prevents the feeling of disruption. Customers aren’t shuttled to some other website for entering the payment information, they complete their payment on those site from where they’d placed the order.
Nevertheless, if the clients feel more confident about paying it about a renowned payment gateway provider then those disruptions in those processes don’t matter. As a merchant retailer, you are required to consider the comfort factor of your customer when choosing a payment gateway.
Who’s involved in an online Payment Transaction?
When it comes to processing credit and debit card transaction then there are three main players who are fully involved in online payment transactions, one end is you and another is your customer. In between are various technology solutions that connect the two of you.
- You, the merchant: to accept payment via credit card and online you need to partner with a merchant bank or acquirer who accepts the online or card payment on your behalf and deposits all the payment on your merchant account provided by them.
- Your customer: To buy from your website your customer needs credit or debit card, which they use as a payment option. Your customer has a credit card and the bank, which approves for the credit card of your customer called issuing bank who issues the credit card to the customers.
- The technology: In the middle of the merchant and customer, technology plays an
The first technology is payment gateway, that software links your site’s shopping cart to the card-processing network. important role. There are two technologies, which helps you and your customer to transact.
The second is the payment processor, which does all the heavy lifting like sending you a billing statement, moving the transaction through the processing network, working with your bank etc.
Breaking down the credit card processing fees: everyone who touches the transaction wants some benefit from it, including issuing bank, the credit card associations (Visa, MasterCard, etc.), the merchant bank, and the payment processor. Whenever a customer processes a transaction, you pay fees:
A percentage of transaction amount goes to the issuer who issued the credit card to the customer this fee depending on sale amount, industry, and the type of card used. Another percentage of transaction amount goes to you means to the merchant which is the markup fee, the amount here also varies by different factors like industry, amount of sale, monthly processing volume etc. one more type of fees is the assessment fees taken by the credit card association.
How does a payment gateway work?
We explain to you the work of payment gateway in four easy and simple steps:
1. Collection- your customer choose the product or service and then proceed to the payment page and enter all the details related to transaction and after that this information page directed to your payment gateway.
2. Authentication- After receiving your transaction information, your payment gateway takes this information and sends it securely to your bank account.
3. Authorization- Now the sale has been approved and you are now able to deliver the product or service.
4. Settlement- At last the money from the sale is deposited in your account after verifying the transaction data.
If you are looking for a reliable merchant account provider, you are in the right place, as IPAYTOTAL provides the best solutions for e-commerce businesses. We guaranty quick real-time credit card processing, top-notch services and at reasonable rates. Give us a call at +44 800 776 5988 or get in touch with us through our website.