A credit card gateway is also called a payment gateway.
A popular feature of an online payment gateway is the secure webform that takes the customer to a third-party site for card processing and payment into the merchant's individual merchant account. Alternatively, another method offered is via a merchant-side application program interface, or API – essentially a code integrated into the server that is hosting the merchant's website.
In laymen’s terms, a payment gateway essentially acts as the “middle man” between front-end systems like virtual terminals and online shopping carts and the banks that process the transaction. The payment gateway is responsible for receiving the payment data from the front-end system, encrypting it, sending it to the bank for processing, receiving the bank’s authorization and then communicating the authorization information back to the front-end.
The vast majority of credit card gateways are hosted by the providers of the technology on their secure servers. Thus, most businesses don’t need to install additional software on their own servers to run a payment gateway.
What Are the Benefits?
There are numerous advantages to merchants who use credit card gateways:
- Lightning speed payment processing.
- Reduces the “geographical barrier” in commerce. Businesses can accept credit card payments from customers anywhere and at anytime (this facilitates payments, even at odd hours)
- Provides convenience to consumers who prefer to pay their bills online. They can pay in real-time with ease and speed.
- Lets customers immediately know whether their payment has been accepted or not.
- Provides safe, secure online payment transactions.
- Payment processing online cuts down manpower costs.
Credit Card Gateway Shopping Checklist
It’s important to understand that most companies that offer a credit card gateway normally charge the merchant certain fees (Note: These can vary widely).
When deciding on a payment gateway best suited to meet the payment services of your organization, try to consider the following factors:
- How many transactions do you think you will process each month?
- Will you use auto-billing?
- Where is your company headquartered?
- The credit card gateway provider’s overall reputation in the marketplace.
- Level of tech support offered.
- Can the provider integrate with the current payment solutions you are using?
Knowing what you want for your business and how you see it in the future can be helpful in finding the right credit card gateway that will work best for you.
If you represent an organization that wants to accept payments online, then a credit card gateway can play a critical role. Both you and your customers will be reassured with the ease, protection and security an online payment gateway provides.
It’s important to keep in mind that each credit card gateway provider works differently, so go for the one that can ultimately help you in advancing your business and help you meet your future goals.
BillingTree’s Payrazr Gateways offer the flexibility, integrations and reporting required to succeed in today’s economy. myPayrazr gateway provides the most intuitive and flexible integrated debit/credit card payment processing gateways available on the market today. Created by leveraging the knowledge and expertise of BillingTree, myPayrazr combines cutting-edge technology solutions with over a decade of payment processing and compliance experience.
Contact us today for more information about how credit card gateways can help your business survive and thrive.