(Newswire.net — September 2, 2020) — Americans have lost at least $77 million to cyber fraud this year alone. However, this might be a tip of the ice-berg considering that cyber-fraud is often under-reported.
How safe are your transactions online?
With the ever-evolving dynamics in the Internet of Things, the future of digital payments can only get more sophisticated. While online transactions are fast and convenient, there’s always the risk that a fraudster is designing a new way to swindle online clients. As such, e-commerce payment security remains a major setback.
Unless you have a trusted payment gateway, you’ll likely be a target by highly skilled scammers in no time. Even so, it’s interesting that a bigger percentage of the current four billion online users have no idea what online payment gateway means.
A payment gateway is the best way to keep your online transactions safe. Read on to learn more.
What Is a Payment Gateway?
Payment gateways help to keep the payment ecosystem rolling. Online payment gateways create a secure bridge between the merchant and the customer in online trading. Most online transactions depend on mutual trust, considering the absence of a face-to-face relationship.
The dependence on mutual trust has, however, led to the emergence of a breed of fraudsters. Most cases of online fraud related to payment are discreet. You might not realize you are dealing with a fraudster until the conning game is complete.
A gateway payment service exists to remedy this problem. The gateway payment process acts as the validation doorway to any online transaction. Depending on the circumstances, the gateway service provider might validate or invalidate such payments.
The simplest way to look at payment gateway providers is as intermediaries. Being in the middle requires that such payment gateway companies ensure each transaction’s safety without affecting the speed. Every payment gateway service uses e-commerce software that authorizes or declines payments on behalf of merchants.
How Does Payment Gateway Work?
Are you a merchant, e-commerce business, or a traditional brick and mortar business? Understanding how the payment gateway process works is important.
Did you know that same day and next day shipping increased by a whopping 237 percent in the United States in 2018? The growth indicates the general embrace of online business across the board. However, as this growth becomes evident, it’s also important to understand how to transact online using the safest way.
The payment gateway process relies on the encryption of sensitive customer-related information to enable verification. Such information includes details regarding the client’s credit card number and other important banking details.
Step 1
The process of securing a payment online begins when a customer places an order. Before the client proceeds to check out from the cart, they need to submit specific information about their desired payment procedure.
Step 2
The merchant will then process and forward the information to the payment gateway service provider. The client has the final decision on their preferred payment method. It’s upon the merchant to ensure that they have multiple options.
The payment gateway then routes the information to the credit card’s issuing bank. At this point, the transaction is still held to ensure adequate verification.
Step 3
Depending on the response from the bank, the gateway service provider may authorize or decline the request. This stage allows the gateway service provider to verify if the client has sufficient balance in their accounts to complete the transaction. Most popular issuing banks allow for a verification window to eliminate the possibility of fraud.
Step 4
If the account information favors the completion, the online payment gateway will notify the merchant. The gateway service provider may also send a warning signal if the banking account information is suspicious. The merchant should decline the transaction accordingly in such cases.
Step 5
In case of a successful verification process, the issuing bank settles the request with the payment gateway. The intermediary then proceeds to forward the details to the merchant. This process is often prompt despite the back and forth.
Why Is Payment Gateway Important?
Payment gateways are the doorway to safe online transactions. Every merchant must find a platform that’s not only secure but also user friendly.
Here’re some of the main reasons why you need to consider payment systems.
Online Transaction safety
Safety is at the core of any merchant’s decision to consider payment gateway services. The rising trends of cyber insecurity pose a major concern for any business involved in e-commerce. The need to consider payment gateway services is to enhance the safety aspect of managing all online transactions.
Trusted Go-Between
The process of verifying credit card information can be hectic. It’s worse when your business has multiple same and next day shipments from tens of clients.
The best payment gateway service providers act as a reliable go-between in the verification process by providing payment gateway integration. The approach helps in eliminating the delays of on-site verification.
Time-Saving
The amount of time needed to complete a single transaction verification is overwhelming. Now imagine having to deal with hundreds of online shoppers who expect speedy processes.
The process can be hectic and cumbersome, with significant time lost. The best news is that payment gateway providers can help you manage the process and save on time.
Saves Cost
It’s not possible to hire a team of credit card verification experts to manage your payment processes in-house. You might need to pay through the nose to ensure that you have enough resources and workforce. Most payment gateway service providers have been in the business long enough and have the resources and teams to manage the process at affordable rates.
Consider Outsourcing Payment Gateway Services Today
Your online business is at risk unless you have a secure payment protocol. With the gradual growth of online transactions, a major threat fueled by credit card fraud has emerged. Merchants must, therefore, seek new ways of protecting their businesses and funds.
The surest way to keep your online payments secure is through a payment gateway. You need to search around for the best payment gateway service providers. This will ensure that online payments are secure while also minding the user-friendliness of gateway interfaces.
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