Let’s talk about payment gateways on the Internet, do you know what they are?
Let’s start at the beginning: what is a payment gateway? In short, it is software that enables the transfer of funds and other digital assets between two entities. It ensures the security and confidentiality of these transactions by verifying and validating the identity of both parties in real time.
Payment gateways are used for many different reasons, including but not limited to the following:
- Accepting payments from customers on your website.
- Receiving payment from customers when they purchase goods or services online.
- Paying suppliers more efficiently.
What are the benefits of using a payment gateway?
A payment gateway is a third-party service that allows you to accept online payments. It is used by online stores and blogs to process payments securely, efficiently and cost-effectively.
There are many benefits of using a payment gateway. For example, it helps you attract more customers to your online store or business.
Another benefit is that it increases sales opportunities and you also make money by accepting payments from your customers.
Payment gateways and online gambling
Payment gateways are a vital complement to the functioning of economic life in Internet times. They are found on virtually every site that sells products or services.
Online gambling and casino sites generally use many popular payment methods.
The most serious casinos, the ones preferred by players, usually offer a wide variety of payment methods, with an emphasis on security, but also on the speed of transfers. Nobody wants to wait several days to make a withdrawal from an online gambling site.
For these reasons, in addition to offering more and more gateways and payment methods, gambling sites are trying to become fast withdrawal casinos, which is very interesting and attractive to customers who frequent these sites.
What are the types of payment gateways available?
Payment gateways can be divided into two categories: credit card gateways and PayPal alternatives.
The most commonly used payment gateways in the world are credit card gateways. They are offered by almost all banks or financial institutions and can be easily integrated into an e-commerce site.
Credit card transactions generally involve higher fees, but also allow greater flexibility with payments and chargebacks.
How does a payment gateway work?
The customer enters a website, views the catalog of products or services, chooses the product(s) of his preference and places the order.
Your company, through its website, transfers the customer’s order information to the payment gateway.
The customer chooses the payment method he/she prefers. Following this, the transaction is forwarded to the bank previously chosen by your company to request authentication of the transaction. An SSL or TLS system is used for data encryption.
The bank, after confirming the transaction, forwards the information to the selling company to deliver the customer’s details. Immediately after this, the same data is sent to your website to verify that their data is correct and finally authorize the purchase.
Once the process is authorized by the company, it is the turn of the consumer’s bank to verify the information and, if it is correct, it will give the authorization and display an approval message on the website. In case the transaction is not approved by the customer’s bank, a message will be displayed with the reason.
Finally, in case both banks have authorized the transaction, the bank settles the money with the payment gateway and, correspondingly, the payment gateway settles the money to your company.
Would you have imagined that in just a few seconds all these processes are carried out? That is the magic of payment gateways, since they facilitate communication between banks to make the process agile and efficient; in a short time you can know if your transaction is approved or rejected.
Integrating your own payment gateway from scratch can also be an option if you want to give it other configurations or customize it. But the configurations are more complicated and, if you are not an experienced programmer, you will need to call in a professional.
What are some common concerns about using payment gateways?
With the rise of online payment gateways, fraud prevention has become a concern for merchants. It’s all about risk management and how to manage the risks associated with online payments.
Some common concerns merchants have are:
- The gateway can be hacked, causing your customers to lose their funds and you to lose business.
- You may not be able to use a particular gateway because it does not offer enough features or is too complicated for your needs.
- There are greater risks in using a third-party payment processing company rather than doing it yourself.