A payment gateway is an ecommerce based service provider that facilitates payment made via credit cards for regular brick and mortar business, online retailers, e-businesses or bricks and clicks. It makes possible the information transfer between an acquiring bank or a front end processor and a payment portal like a website, mobile phone etc. If you wish to run an online business then employing ecommerce payment gateway service is a must. When a customer orders something online the credit card information is sent to payment gateway which checks the validity with the issuing bank and also scours for fraud within seconds, then the payment processor that is handling all these processes as a whole comes into play and works till the payment is deposited from your merchant account to the acquiring bank.
What is the role of a payment gateway?
Payment gateway services are required for online credit card processing, the same way a POS device is required for offline credit card payment processing. So, the main role of a payment gateway is to authorize the transaction. Without a payment gateway approving the transaction the process cannot go ahead. And because the data of credit card information is quickly transferred from your website to the payment gateway, hacking risks are very low.
It is important to choose the right ecommerce payment gateway for several reasons, one of the major ones being security of information. Not just the payment gateway, choosing the right payment processor is crucial as well. A payment processor is responsible for making all of the processes during the transaction work and deposit the money from merchant account to acquiring bank. When you chose the right payment processor you can easily satisfy your customers with safe and easy credit card payment.