Do you know how any regular credit card transactions take place?
Let me explain it to you in short.
Let's consider Andrea who is a cardholder. She makes a sale from a shop, let's say a shoe shop, which is the merchant. When Andrea comes for payment, she gives her credit card which is being swiped. A request is being sent from the merchant to the merchant bank. The merchant bank recognizes the card brand i.e. MasterCard, Visa, etc... and then the issuing bank. Issuing bank i.e the bank in which Andrea had an account, sends money to the card, which pays the money to the merchant bank. Lastly, merchant bank pays that money to the merchant i.e the shop.
Looks like a very long process, isn't it? But this whole process gets completed in a matter of seconds.
A payment gateway is a software for online money transaction that connects checkout software with the merchant account.
Well, the payment gateway does the same tasks as mentioned above.
But a question may be disturbing you. Why payment gateway method over any conventional money transaction method? What are the benefits of payment gateway for online businesses anyways?
Benefits of payment gateway for online businesses are as follows:
##Safe and reliable
The payment gateway websites in compliance with PCI DSS are reliable. The sensitive data of the cardholder is secure and it also protects the merchants from the heavy fee. Also, the fraud cases taking place during money transaction are prevented.
##Recurring Billing Options
After any money transaction, one can easily get the bill as it is directly sent to the inbox. Because of recurring billing options, one can easily get the bills for monthly or yearly expenses.
##Multi currency payments are enabled.
##Prevents customer disputes
Customers can fully rely on this safe and secure transaction. Unlike other methods, which may lead to improper handling or fraud, hence leading to disputes among the customers.
##Accepts credit and debit cards
Makes the transactions made through credit or debit cards very much more easy and efficient. It also facilitates the submission of multiple transactions in a single file.
##Multiple Channels are available
Customers for online business may be from different backgrounds. They will find is comfortable if multiple channels are being availed. This would make the transaction customer satisfactory.
##Multiple payment types available
Now, tell me if the payment gateway provides so many benefits. Then, why not to try payment gateway for online businesses?
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