Business processes are getting more advanced and online payments are one of the main points to consider in these times. If you want to grow in your industry and are concerned about payment structure, a secure payment method is the solution you need. With this, you can manage payments whether you have a product-based eCommerce platform or any kind of service-based business.
The best way to ensure payment management is to have a payment gateway that is secure and easy to manage. With this, online businesses can receive payments and make profits with secure infrastructure. However, you first need to learn how to implement payment gateway in website, to increase security for both the business and the customer.
A payment gateway is a way to improve online payment processing in your business model. It allows businesses to process online payments using cards or other digital payment methods. Many businesses like eCommerce businesses and service-based organizations use this as a POS system or virtual cash handler.
The payment gateway can help streamline payment structure by encrypting payment details online while keeping user data secure. With real-time updates, it sends transaction details to the source or bank and confirms them instantly.
A payment gateway is a secure way to get payments for business operations. It works with the encryption technique and keeps security an utmost priority. Here is the complete process of how payment gateways work on a website:
When a customer places an order on a business or eStore, the browser encrypts the payment details entered by the customer. It is done with the help of Secure Socket Layer (SSL) technology.
After that, the collected and encrypted information is forwarded to the payment gateway for processing the payment. This gateway is also encrypted with a secure socket layer. Then the payment gateway sends the banking and payment details to the bank and verifies the request to make payments.
Later, the request for payment is sent back to the payment gateway and shows the completion of the payment process. If the details are accurate and the transaction is approved, the funds will reflect in the business account. There are also charges involved with this process as gateways charge for this operation.
Payment gateways are basically of two types. You can use the best one suitable for your requirements for payment processing. Here are both types to make you understand precisely:
In this type of payment gateway, a customer is redirected to the host network platform where a user can enter the payment information. When we talk about hosted payment gateways, the host is responsible if there are security issues.
It can be easily set up and used. The disadvantage of hosted payment gateways is the speed as the speed is slow. Moreover, it is not used in many countries. Some popular examples of hosted payment gateways are PayPal, Stripe, 2Checkout, RazorPay, etc.
In this type of payment gateway, APIs are used to connect the gateways to the business or eStore making it suitable for Ecommerce development. Without needing any additional sources, businesses can receive payment directly from their platform. While the payment happens on the business platform, there is no need for redirection.
It gives a smooth platform for transactions and also comes with a mobile-friendly approach. It also has some disadvantages of security as if there are security breaches or vulnerabilities on your website, it can directly affect your business. There can be a need for features to adjust your website design to enable payments with this type of gateway. Some popular examples of integrated payment gateways are Braintree, Payflow, Authorize.net etc.
There are various types of transactions with a payment gateway. Here are the most common ones for your better understanding of transactions on your platform:
It is the most common transaction on payment gateways. This is used when the transaction is done for sales purposes.
In this type of transaction, the payment gateway uses the funds for future settlement. It is usually done with the card.
When there is any need for increased or decreased payment, this type is used. It is used when the amount is locked previously.
When the transaction is not completed, it releases the previously blocked payment. For this, there is no need to wait for the blocking time.
When there is any need of sending the payment back to the user, this is used. It helps in a smooth user experience in case of a partial or complete refund of the charged amount.
In some cases, the amount is received more than once. Businesses need to send the excess amount back to the users without charging them. Here, Credit payment gateway transactions are used.
Security is a very critical aspect when it comes to payment management online. You need to keep user data and banking details safe and secure if you want customers to interact with your business. Other than working round-the-clock, this payment method can be time-saving.
The payment gateway uses TLS encryption and SSL certificate to keep users secure. With this, online payment with a payment gateway follows two-factor authentication and tokenization to ensure users get secure transactions. A payment gateway can eliminate suspicious user behavior and block transactions from suspicious IP addresses.
Do you want to integrate a payment gateway into your digital platform and are not sure where to get started? Here is the complete process on how to add payment method to website:
To integrate the payment gateway to your website, you need to check the compatibility of the hosting. You cannot get a payment gateway for your website if it's not compatible with the payment gateway you need, whether it's hosted or non-hosted.
There are many payments to choose from for your website. You need to get the best option for your customers and increase their convenience. For this, there are many payment gateway that are popular like PayPal, Stripe, RazorPay, Braintree, etc. You should go for multiple payment gateways for attracting more customers for online payments on your website.
Integration and setup is not free for every payment gateway while some of them offers free set up. You need to pay the installations price to use it for your website. The charge structure can be found on the payment gateway website so you can make informed decisions for your business.
You need to create an account on the payment gateway website to get started with the integration. For this, you need to go to the payment gateway website and create an account with all the required details and verify the documentation. With an account, the payment gateway provider will give you API keys and a merchant ID that will be used for payment gateway integration on your website.
Set up the server-side infrastructure based on the programming language to handle the payment requests effectively. You can implement custom functionalities here like handling responses and verifying the transaction status. After that, you should implement client-side integration. It can be useful for presenting payment options to users on your website.
In the web hosting provider’s admin panel, you can find the integration option. There, you will find the options where you will be redirected to the payment gateway and complete it in easy steps. After that, test the payment gateway and check its functioning so your customer faces no issues with transactions and you can manage error handling with ease.
Once you have tested the integration, you should make it live so you can make changes as needed. With this, you can ensure you have everything in line and functioning like you wanted for your website.
There are several factors that you need to consider before making the ultimate choice for your business. Here are some considerations to make before choosing an ideal payment gateway for your business platform:
Pricing is one of the crucial factors when you want to find out the best payment gateway for your business. There is a need for third-party tools to organize the processes and it makes charges high. You need to know every price factor as every participant in the payment process has some charges.
There are many kinds of charges involved like set-up fees, monthly gateway fees, merchant account setup fees, and transaction charges.
Many payment gateway service providers have transaction limits. You need to be sure about your needs and choose the best one in that category. It is a strong consideration as there are minimum and maximum amount limits for transactions.
Some payment gateways also have monthly or daily transaction limits. When you choose a payment gateway, you should keep that in mind.
A merchant account establishes a connection between a bank and a merchant. After a merchant account, the bank can manage transactions. When going for a payment gateway, it is crucial to check if they provide merchant account services or not.
Many payment gateways provide these services and it is best to have it from the beginning. It can help you reduce any additional expenses in setting up a merchant account.
You need to ensure the payment gateway supports all types of payment methods and credit cards. Most online users pay with credit cards or electronic payment methods so you need to ensure the payment gateway you are working with accepts all credit cards.
If your business is operational in multiple countries, you need to have a payment gateway that accepts multiple currencies. Many payment gateways offer localised checkouts based on locations.
The majority of the customer base uses mobile for online transactions. You should consider this and have a secure mobile payment mechanism for online payments. Many payment gateways support wallets from service providers and you can also consider the factor of whether your provider has it or not.
It is one of the crucial factors in the payment gateway and you need to consider this to efficiently handle payment on your online business.
The payment gateway should be secure and it must be secure for everyone involved in the process. It should have strong techniques and processes to secure user data and sensitive banking details.
With this, ease of use also matters and you should choose a payment gateway that is secure and user-friendly.
If you are concerned about security and want to employ secure payment gateways for your business, you should go for a custom payment gateway. With the help of a custom gateway for your needs, you can minimize the cost related to the payment processes.
You need to register as a payment gateway service provider for creating a payment gateway. After that, you can charge for your services as well by providing a payment gateway to other businesses.
Bank relation is essential and you need to manage contracts with various banks that will process and handle the payments. There are charges involved with this and you should manage that according to your needs.
The next step is to get an API for your payment gateway. You need to have robust documentation that is compliant with PCI DSS.
The data is stored in the form of tokens in the payment processes. With this method, you can safeguard sensitive data and banking details to prevent cyberattacks. These tokens have transaction data and user cardholder information.
You need to implement the security measures required and integrate fraud protection on your platform to stay PCI DSS compliant with your custom payment gateway.
You can have additional features and integrate wallets and other payment methods with the help of secure API. For your ease, there can also be a unique panel to control merchant actions.
If you are a large business model, you should consider hiring an experienced ecommerce developer to build a custom payment gateway. There are many benefits of building a custom gateway, here are some of them for you to consider in custom development:
Many big vendors for payment gateway work their way and provide no custom options. With the help of a custom payment gateway, you can build the features you need for payment processing in your business.
There can be high transaction charges involved with a payment gateway integration. If you go for a custom payment gateway, you can eliminate the transaction fee and there will only be bank-related charges.
You can sell your custom payment gateway as a product and charge accordingly for providing your services. This is one of the best business methods and you can make heavy profits with this.
A custom payment gateway comes with a future value. It is one of the best ways to ensure you stay secure with the payments and save a lot if there are a huge number of transactions.
For an individual, adding a payment gateway is a lengthy process as you need to manage development, maintenance, compliance certification, API documentation, SSL certification, admin expenses, etc. Other than these issues, you should have an integral team to implement a custom payment gateway for your business.
We can help you get a secure payment gateway of the highest quality. Our experts utilize the latest trends and best practices to ensure you get the best payment management system. Whether you want a payment gateway integration for your website or want a custom-built payment gateway, we can help you with everything.