What is meant by payment gateway integration?
To understand what a payment gateway integration specifically means, let’s first understand the first half of the terminology. A payment gateway can be referred to as a bridge between the website where the transaction will start taking place, and the bank associated to the customer in question.
With the world integrating itself into a technological generation, aligning yourself with the current trend has become a necessity, especially if you want your business to keep expanding, growing, and even existing. And right now, a current trend in purchasing goods itself has turned to the web. Credit cards and debit cards are simply a means to purchase your desired items online, with your card details being enough for the transaction to take place.
That’s where we come in with payment gateway integration, i.e. it simply refers to integrating or assimilating a payment gateway option for any purchases you’d like to offer through your website. An important feature for securing the purchases as well as providing you with reports on the transactions that keep occurring, integrating a payment gateway is an essential option.
But to properly understand it’s benefits, let’s refer to the key components of a payment gateway.
1.Compatible with multiple payment operators: it can work with several different types of payment options as well as be liable to integrate with several different processors. You can get very high number of options and variables when it comes to banks that they can be attributed to.
- Manageable traffic: they can manage unlimited users’ transactions, all at the same time, encrypting them and sending them across to their respectable bank processors at the same speed and time as with one simple transaction.
- Security – SSL secured with Secure Social Layer, you can be sure that your transactions are protected from any prying hacks. Frauds are also managed well, with tools present in the gateway to keep out unwanted users.
Payment Gateways come with a few drawbacks as well;
- Single Processor: due to its single status, you’re less accountable for settlement accounts between merchants and banks
- Translating Settlement Reports: this can be very time-consuming considering how you’ll have to perform this manually
- No off-site interference: there won’t be a specific redirect ‘pay page’ provided by the paying gateway, only a simple status update.
So, the process your website transactions will go through with a payment gateway integrated onto your website is listed below, for a better understanding of the inner-workings of such a procedure.
- We start with a website button on the same page as the product that is to be purchased.
- Once the customer presses this button, he’ll be provided with an online payment information form, which would include all your credit/debit card information.
- Once the data has been submitted, it is sent across to the payment gateway, where it’s most likely to be encrypted for security purposes.
- This encrypted data is then further sent to a payment processor, specific to the customer’s bank.
- Here the processor checks with the funds of the customer for its sufficiency.
- If the customer has sufficient funds, this information is relayed back to the customer through encrypted data from the payment gateway, while the bank withdraws that amount to be deposited onto the merchant’s bank, accountable in two business days.
- If the customer does not have sufficient funds, this information, sent to the payment processor by a response code, created by the bank, is relayed to the payment gateway. This information is then encrypted and sent across to the server, where it displays the failed status of the transaction while providing the reason for the failure along with it as well.
In conclusion, owning a payment gateway is a certain benefit for your company, especially when considering the security of the transactions, with less chances of fraudulent activity. But making sure you’ve integrated the right payment gateway will be an important decision to make, as benefits like high quality reports, fast settlements and exceptional customer service can be accounted only through them.
Do let us know what you thought of our article, along with any questions you might have on integrating a payment gateway for your own website, in the comment section below.