A payment gateway service provided by an e-commerce application service provider authorizes credit card or direct payment processing for online retailers and e-businesses. The gateway facilitates the transfer of information between a payment portal and the customer?s bank or credit card company.
What are the advantages of using payment gateway services?
For small online businesses, there are a few key benefits. For one thing, the service is able to transfer sensitive information (credit card number, bank account number, etc.) quickly and, most importantly, securely. Additionally, using a gateway service reassures customers that your business is both legitimate and trustworthy.
Which payment gateway service should I choose?
If you are not familiar with the processing systems, you will want to do some research. There are a few factors to consider when making your decision. First, you should consider sign-up fees as well as the fixed fees or percentage fees per transaction. Next you will want to look into whether the service can operate internationally or if it is only available domestically. Finally, find out if there is a limit on the kinds of products you can sell; some payment processing services only accept transactions for services rather than physical items, and vice versa.
Are payment gateway services necessary for running on online business?
No, they are not a necessity; however, using one is encouraged because of the security and peace of mind that come with them. Since more and more people are choosing to shop online, it is important to follow the trends and update your technology if you want to stay competitive in the industry.
The rise in online identity theft and credit card fraud is another reason to update the security of your online business. More than half of consumers say that they are concerned about the security of their personal information when shopping online. If a customer doesn?t trust your payment system, they are less likely to make a purchase through your website.