Digital Payment gateway is a system that allows business owners to accept payment from customers using digital cashless methods. You will need a payment gateway regardless of whether you own an online business or an offline store. If you want to grow and scale at large and give your customers a superior experience, you will need it.
It’s one of the most important tools of the trade without which no business can stand tall in a world that’s high on competition. So, there is no arguing that a payment gateway system is super important, and you need to know what it is and what it does to be able to make an informed decision once you choose to integrate one into your website.
In this article, we will take a brief look at the system to help you get a better understanding!
How Does it Work?
It works by capturing transaction-related information and encrypting it before sharing it with card networks and banks to get approval or decline status. If approved, the payment gateway relays this information to the merchant and the customers, thus completing the transaction.
Here’s how the entire process takes place:
- The customer enters transaction-related information on a secure payment page
- The transaction information is captured by the payment gateway and encrypts that information
- The encrypted information is then relayed to payment processors
- This information is shared with the credit card network and banks
- The acquiring bank checks the information and performs fraud checks, and shares it with the issuing bank
- The issuing bank once again runs fraud checks and checks the customer’s account for sufficient funds
- The issuing bank then either approves or declines the transaction
- This information is relayed back to acquiring bank, which credits the merchant account
- The payment gateway informs both the merchant and customer in case of a successful transaction
- The transaction is complete
Why You Need a Payment Gateway System?
Investing in a payment gateway system comes with multiple benefits. Let’s look at a few benefits of a payment gateway:
- Access Bigger Markets: An online payment gateway allows you to accept online payments from customers, meaning you can sell to a larger consumer base spread all over the world. You are no longer confined by geographical boundaries and can expand beyond your home country with ease.
- Seamless Experience: It allows you to offer your customers a superior, seamless experience that is fast and secure. This leaves customers with a sweet feeling as the entire shopping experience is pleasurable.
- Offer Customized Checkout: With a payment gateway, you can customise the entire checkout experience with your brand’s logo, colors, and fonts that makes you stand out from the competition and result in more brand recall among customers.
A digital product payment gatewayis the need of the hour for any business that aspires to become a market leader. So, if you happen to be in the business of selling goods and services online, then you should invest in such a payment platform at the earliest!
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