The Top Payment Gateways: What to Know

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Payment gateways are just one of the essential tools for selling products and services online. This will help you provide a better experience for your customers.

What is a payment gateway?

It refers to the technology that enables merchants to process payments via credit cards by the acquiring bank. High-risk merchant accounts have specialized and secure payment gateways.

Advantages of a payment gateway

  • Provides contactless payments
  • Offers integrated payments
  • Card present transactions at point-of-sale system

How a payment gateway works

Customers add products and services to the cart and go on with the payment page. Then, they will be asked to provide credit or debit card details and will be passed to the payment gateway.

The information will be encrypted by the payment gateway and will go through a security check before sending the information to the acquiring bank. Then, it will be sent securely to the card schemes, which will ensure another layer of security check before sending the payment information to the issuing bank.

After security and fraud checking, the transaction will be authorized by the issuing bank. When either approved or declined, a message will be sent back to the bank from the card schemes, before being sent to the acquirer.

The acquiring bank then sends the approval or decline message to the payment gateway who will send the message to the merchant. When the payment is successful, the acquiring bank collects the payment from the issuing bank, then holds the funds in the merchant account.

That is why choosing the best payment gateway will ensure smooth transactions, completing the transaction in less than three seconds as the whole process happens in real-time.

Top payment gateways

  • This is best for online businesses because it provides customers the option to pay easily using this payment gateway at competitive rates. Moreover, it is very simple to add as a payment option because users can create an account and add a PayPal button on their website.
  • This payment gateway has a strong focus on technology and development. It also offers customizable payment solutions at competitive rates. It allows its products to grow and scale with companies of all sizes and adapt to their needs.
  • Net. One of the oldest payment gateway providers is Authorize.Net. Serving 430,000 merchants and managing over a billion transactions annually, it is safe for the company to claim as the best overall.

Moreover, it is easy to set up and use, works with nearly any merchant account, while accepting transactions from customers worldwide.

Overall, payment gateways allow both brick-and-mortar as well as online sellers to provide secure ways to pay by credit card and digital wallet to their customers. It is also essential in helping businesses grow, as it opens up new payment options and marketplaces.

Also Read: 5 Top Peer-to-Peer Payment Apps to Use in 2020