Payment gateway integration is the process of connecting a website or mobile app to a payment gateway in order to enable online payments. A payment gateway is a service that processes electronic payments by facilitating transactions between a customer’s bank account and a merchant’s bank account.
Payment gateway integration involves integrating the payment gateway service into the website or mobile app so that customers can make payments using various payment methods such as credit/debit cards, net banking, e-wallets, and other digital payment methods. Payment gateway integration is essential for e-commerce websites and mobile apps as it enables online transactions and helps businesses to expand their customer base.
How Payment gateways work
When a customer makes an online payment, the payment gateway plays a critical role in processing the transaction. Here’s a step-by-step overview of how a payment gateway works during online payments:
- Customers complete orders on an eCommerce site. The site will direct customers to a payment gateway where they enter payment information like their debit card details.
- After receiving the information, the payment gateway will perform fraud checks and encrypt it using built-in security protocols, namely Transport Layer Security (TLS).
- The payment gateway transmits the encrypted information to the merchant’s acquiring bank processors and the processor then passes it to the customer’s card network.
- The card network forwards the transaction to the customer’s issuing bank
- The bank will check if there’s a sufficient balance on the customer’s bank account and send the authorization response back to the card network.
- The card network informs the processor whether the request was approved or declined.
- The payment gateway receives the response from the processor and passes this response back to the eCommerce site to let the customer complete the transaction.
- If the transaction is completed, the customer will be notified, and the acquiring bank will deposit all of the authorized funds in the merchant’s account. However, if the transaction fails, the site will ask the customer to use another payment method.
-
Check this out: 10 reasons SMEs need an ecommerce website
WHY YOU NEED A PAYMENT GATEWAY INTEGRATION FOR YOUR WEBSITE
- Increased sales: By enabling online payments, businesses can expand their customer base and increase sales.
- Improved customer experience: Payment gateway integration provides a convenient and secure payment option for customers, which can improve the overall customer experience.
- Reduced costs: By automating payment processing, businesses can reduce the costs associated with manual payment processing and reduce errors.
- Increased security: Payment gateway integration provides a secure way to process payments, which can help prevent fraud and protect customer data.
- Faster transaction: Provides several features to ensure a seamless and rapid payment process.
In conclusion, payment gateway integration is a critical component of e-commerce websites and mobile apps. It enables online transactions, expands the customer base, and provides a convenient and secure payment option for customers. By choosing the right payment gateway provider and following best practices for integration, businesses can reap the benefits of this automation and streamline their payment processing.
Want to integrate a payment gateway in your site? Reach out to us supports@onenetservers.net
