A payment gateway is mainly used to validate a customer’s credit card details in a more secured way and make sure the funds are readily available for payment. This is useful in both online and offline businesses; whether small or big.
What’s its role in payment transactions? In the simplest of words, a payment gateway is a service that would approve or decline a transaction.
You may ask why you would pay for something which could be done by yourself. The answer is quite simple, too—it’s for security. To fully understand the importance of payment gateways in business transactions, it’s best that you take a look at the list below.
1. It ensures secured business transactions.
Card scam and fraud are common in online transactions. You can never be sure that the person you’re negotiating with on screen is reliable. Bringing an unbiased third party to the picture ensures that both sides are free from malicious intents. The payment gateway will validate both the merchant’s and the customer’s transactions.
2. It’s easy to use.
Payment gateways are extremely easy to use. You need not have a degree in computer technology to learn how the system works. You only need to read the instructions given to you. After you have set it up, you can now make purchases and other transactions in just a few click of the mouse.
3. It has quick processing.
If you employ a payment gateway service, you need not wait for weeks to complete payment set-up in your business. The gateway will handle it for you, and it will be processed in the quickest time possible. So, you save not only energy but also time.
4. It comes with an excellent program.
Most payment gateways services come with a shopping cart software and other bundles which are necessary for setting up an online store. With the shopping cart software, customers will only click items, place them in the cart, and check-out. The payment gateway will be the one computing the price plus shipping charge and tax. Therefore, you don’t even need to be physically present every time a transaction is made. Moreover, you will no longer worry about making errors in computation.
5. It has a lot of features.
Aside from the bundles, you can get, a payment gateway also has a lot of useful features. Examples of which are cared features, payment options, security features, etc. Merchants and customers alike can choose the features that best fit their needs.
6. It taps a wide base of customers.
It opens your store to customers all around the world as payment gateways often partner with banks from many countries.
7. It is safe.
Hacking is not a problem as a payment gateway uses 128 bit SSL, industry-standard encryption system, which means your data is strongly protected. It knows that you are giving them sensitive information that’s why it’s backed up with a strong security system that also prevents identity theft, phishing, etc.
8. It is convenient.
Unlike banks and offline stores, it runs 24/7 so that you can make business transactions wherever you are in the world and during whatever time.
It’s only normal to be skeptical about payment gateway if you have not tried it yet. Like other systems, it’s not perfect. However, in the 21st century, it is the closest merchants can get towards the assurance that they can have quick, secure, and hassle-free transactions.