Payment gateways are a foundational element of today’s Internet based business. Payment gateways provide the necessary groundwork and support for retailers to conduct business online. By definition, a payment gateway is a service that allows for the online transmission and processing of billing or other money-related transactions.
When considering a payment gateway, businesses have two types to choose from: a secure order form or a merchant-side Application Program Interface (API).
A secure order form directs customers to a secure third party site for the completion of a monetary transaction. This third party processes the transaction and submits the debit or credit back to the company.
A merchant-side Application Program Interface provides the necessary support and code for a company to process monetary transactions on their own site.
Payment gateways, whether a secure order form or a merchant-side API, provide several benefits to online merchants. Payment gateways provide the tools for online merchants to broaden their customer base. Today’s businesses are no longer bound by geographical location. A business in New York can provide services to customers in California with no greater difficulty than providing service to a local customer. Payment gateways make this distance service possible by eliminating the time involved in payment, providing for instant electronic payment rather than time consuming paper payment.
Payment gateways also provide security for both the merchant and the customer. With a payment gateway, there is no worry of a payment getting lost or stolen. The immediate nature of a payment gateway also assures that both the customer and the merchant will know right away whether or not a payment was accepted or declined.
Payment gateways are an excellent and essential tool for today’s online merchant, providing a secure way for businesses to process online monetary transactions. If you have a new site and want to start taking credit cards online, or have questions about your current service, why not call us today?