It is estimated that 75% of the adults shop online at least once or twice per month. We have all seen how shopping around internet has grown into a big business. Today, internet has become one of the main ways for the consumers to engage with companies. Payment gateways support the needs and demands of modern consumers as they help them transact with their favorite businesses online.
If you have launched your digital platform and want to know all about merchant account payment gateway, you can know it all here. Let us start.
A payment gateway can be described in the simplest form as a software platform that easily integrates with your website or business app to process credit card payments. Actually, it goes a little deeper than that because there is a lot more functionality inside a payment gateway. We will try to walk you through the same.
Who uses a payment gateway?
Payment gateways are built for businesses that want to accept credit cards over the internet. Some primary users that use payment gateways are online store merchants, mobile applications, SaaS applications, online subscription with recurring billing.
You might know that payment gateways can accept payment through debit and credit cards but many payment gateways accept other types of payments as well such as bank transfers and cryptocurrency.
Duties of a payment gateway
Payment gateway integrates with a software platform, authorizes your transactions, transmit the information, and also become a host of other useful services.
A merchant account payment gateway has integration capabilities
At its core, a payment gateway can offer tools and access to let you integrate with an app, website, or other software. The integration capabilities include APIs so the developers have full control over the features: one-off transactions, authorizations, recurring billing plans, credit card and customer data storage, and more.
Payment gateways help to authorize transactions
Whenever a customer makes a purchase on your online store, the gateway connects with the bank of the customers. The issuing bank will check the funds and confirm the availability and see of the credit card is in good standing. The information is conveyed back to the payment gateway to inform the online store on whether to let the customer know that the transaction was a success or declined.
Behind one transaction all the parties, your processing network, credit card bank, and merchant acquirer all are involved in the transaction. The entire transaction gets completed in a matter of seconds.
A merchant payment gateway is the need of the hour for every digital business. Do let us know if we can help you.
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