Monday, July 25th, 2022
The payment gateway technology allows merchants to accept debit- and credit card payments from customers. For example, PayPal/Braintree, Stripe, and Square are among the most popular payment gateways.
Payment gateways are like metaphorical cash registers used for electronic payment transactions. This mechanism reads and transfers payment information from your customers’ bank accounts to your bank account.
Specifically, it captures this information and ensures there are enough funds so that you can get paid. As a result, this cloud-based software connects your customers to you. As a comparison, a merchant account enables you to accept funds from card transactions.
Payment gateways make it easy to process online transactions and protect sensitive cardholder information. So, customers can make safe payments without worrying about identity theft. To find the right payment gateway for your online transactions, turn to a payment-comparison specialist like BestPaymentProviders.co.uk.
Best Payment Providers UK is dedicated to offering the most unbiased review of merchant-service providers in the country by focusing on terms, complaints, and integration of payment processing companies. As a result, you can be sure to get the best deal for your eCommerce business.
How Payment Gateways Work
Here is how payment gateways work:
- The customer enters his or her data on your eCommerce website and initiates a transaction. Or the customer uses his or her credit card in a brick-and-mortar store.
- The gateway passes along the submitted card information to the acquiring bank. The latter is the financial institution processing payments on your behalf.
- The payment processor connects with your customer’s card network, such as Visa, and MasterCard, and transfers the transaction to your customer’s card issuing bank.
- The issuing bank verifies the available funds in your customer’s account so the purchase can be covered and that the transaction isn’t fraudulent.
- The bank approves or declines the transaction.
What You Should Know About Payment Gateways
Payment gateways are accounts or payment-processing solutions enabling merchants to accept credit- and debit card payments from customers over the Internet or in a brick-and-mortar store. Work with a reputable payment expert to get the best gateway for your eCommerce business.