What is a payment gateway and how does it work?
One explanation for the expansion of e-commerce is the ease of the purchase process. As it is fast and practical, it is perfect for those who need agility and do not want bureaucracy. And to make shopping even more comfortable, virtual stores usually offer various forms of payment for the consumer to choose from.
Therefore, it is important that your e-commerce also offers a fast and, above all, secure way to process payments. That’s where payment gateways come in. One perfect example is Corefy, a white label payment gateway platform for payment institutions and online businesses. In this post, you will understand how this technology works, its advantages, and how to choose the best. Let’s go!
What is a payment gateway, and how does it work?
Payment gateways are systems that carry out the function of intermediating, acting a a gateway between the customer and the bank, providing security and speed to financial transactions.
In addition to the customer and the bank, the gateways also involve operators and credit card brands and acquirers. They are a platform for the consumer to pay for the product at the time of purchase. These platforms are available to clients in the form of apps or websites. You can create your custom profile with all your details, including your photo, in any format like bkp jpng.
Advantages of payment gateways
Your e-commerce will gain a lot by utilizing a payment gateway. Discover now some of the main benefits of the system for you and your customers.
Reduced costs
Since the gateway acts as an intermediary between the customer and the financial institution, the payment process is simplified, and some administrative fees are eliminated.
Time optimization
The connection between the bank and the store is direct, meaning that the customer does not spend much time waiting for the purchase to materialize. This brings a positive image to your brand and builds customer loyalty.
Autonomy
Gateways are resources that allow the merchant to offer various payment options. Credit card is one of the most popular forms of e-commerce. With technology, customers can pay for purchases in installments so that installments fit in their pockets.
Security
Many people don’t know, but there are data security standards for commercial transactions via cards. A perfect example is the PCI DSS standards (Data Security Standards for the Payment Card Industry).
This institution establishes rules for gateways to provide transactions with a high level of security. The security protocols are called anti-fraud and are used all over the world. Thus, the store’s and customer’s confidential data are protected.
How to choose the best payment gateway
Here’s what to consider to find the best payment system:
Costs
You should consider the costs you will incur using a payment gateway in your business. They may come in three forms, including set-up fee, transaction fee, and monthly fee. Consider the volume and value of your transactions to find an affordable choice for your business.
Support
As with any technology, something unexpected can happen from time to time, especially in the beginning. So, having a good support and service team is extremely important to prevent the consumer from abandoning the purchase.
Stability
One of the functions of support is to ensure that the platform is always available and fully functioning. But make it a point to choose a gateway known for stability. Generally, the best-known run smoothly and uneventfully.
In summary, integrating a payment gateway into your store is the best solution for you and your customer, as it guarantees speed, transparency, and security in the purchase process. This will contribute to a good relationship and more sales.
