Being able to accept online payments expands the scope and range of your business. It allows customers to make purchases from your site 24 hours a day. A payment gateway allows you to accept digital payments right from your website. Accepting online payments is a surefire way to grow your business and increase your earnings potential.
Authorize
Ultimately the payment gateway facilitates the communication between your website, your payment processor, and the bank that issued the card being use to make the purchase. The gateway initiates the transaction and retrieves feedback, typically in the form of an approval or a decline message. Accepting online payments is a lot like accepting card payments in person, except the card isn’t present for an online purchase. The payment gateway is basically the virtual analog of a credit card terminal at a cash register.
Settle
Batching, or closing the credit card purchases to process payments to your bank, is another task accomplished by your payment gateway. This process is often referred to as settling. Once funds are settled you receive payment. The gateway does much more than simply accepting online payments, it also makes sure you get paid too.
Security
Every transaction and purchase made with a credit card must be authorized by the bank that issued the card. The payment gateway protects the sensitive financial information by encrypting data for communication. This encryption takes place to ensure that the information that flows between the merchant and the issuing bank passes safely and securely. Aside from accepting online payments, the gateway performs anti-fraud measures such as fraud scrub.
Fraud scrub utilizes a combination of address verifications, geolocation and IP checks, and card verification codes to ensure that users are who and where they claim to be. Once these steps have been completed the payment processor will determine whether or not a transaction is legitimate or not. The gateway will then authorize your eCommerce site to complete the transaction.
Communication
Ultimately, payment gateways facilitate communication between your website, your payment processor, and the bank that issued the card being charged. A transaction is passed to your payment processor through the gateway. Your payment processor communicates with your bank to determine the validity of the transaction. Once your processor receives feedback from the bank it then uses the gateway to communicate that message to your website.
Gateways to Get Paid
Payment gateways basically help you with accepting online payments. They authorize, batch, and communicate for your website through encrypted channels. While the process may seem a little overwhelming it doesn’t need to be.
Allied Wallet Can Help
Allied Wallet provides payment processing solutions for thousands of merchants all around the world. We provide your website with payment gateways so you can focus on your business. Our state of the art security keeps your customers sensitive information safe. Contact us today to find out how a payment gateway can work for you.
