Best Online Payment Gateway in India
The rapid expansion of e-commerce in recent years has highlighted the essential role of payment gateways in enabling businesses to process online transactions securely and efficiently. Payment gateways are specialized services that act as intermediaries between merchants and consumers, facilitating the seamless and secure transfer of sensitive financial information.
In addition to providing a vital link between merchants and consumers, payment gateways also offer a range of benefits to businesses, including reduced losses from fraud and chargebacks, increased efficiency and streamlined payment processing, and the ability to accept payments from customers across a wide range of platforms and devices.
This blog will provide an in-depth look at the various components of payment gateways, including their functionality, the types of online payments they support, and the various integration options available to businesses. Additionally, it will explore the latest trends and developments in the payment gateway landscape and how they are shaping the future of e-commerce.
What is payment gateway?
A payment gateway simplifies accepting credit and debit card payments for businesses. It acts as a secure intermediary, verifying customer card information and facilitating funds transfer from their account to the merchant. It also alerts the merchant about the payment’s acceptance or decline. This technology is widely used by e-commerce websites, retailers, and brick-and-mortar stores, streamlining the payment process for the customer and the merchant.
Payment Gateway Example
A payment gateway is a service that securely processes online payments. When you buy something online, the website sends your payment information to the payment gateway, which encrypts and sends it to the payment processor for verification. If the payment is approved, the payment gateway sends a confirmation to the website and completes the transaction. The payment gateway helps protect your payment information from fraud throughout the process.
Exploring the 8 Advantages of Implementing a Payment Gateway for Your Business
Faster and Secure Transactions:
Payment gateways offer security and speed in the payment processing environment, allowing for faster payment processing and improved customer experience.
Minimum Set-Up Costs:
Setting up a payment gateway is affordable, even for small businesses and start-ups.
Keeping Up with Trends:
Payment gateways offer a wide range of payment options and stay up-to-date with the latest trends in the payment processing landscape.
Payment gateways enable quick and efficient transactions, saving time for both customers and businesses.
Improved Customer Experience:
Payment gateways offer a range of payment options, leading to improved customer satisfaction.
Accepting Worldwide Payments:
Payment gateways enable businesses to accept payments from customers worldwide, expanding their business reach.
Reducing Declined Transactions:
Payment gateways check the availability of funds at the transaction time, reducing the number of declined transactions and related inconveniences for businesses.
Payment gateways also offer the option of recurring billing, allowing businesses to automatically charge customers for subscriptions or regular services without manual transactions. This feature can save business time and effort while also providing convenience to customers who do not need to remember to make payments every time.
How do online payments work with a payment gateway?
Before diving into the process, it’s essential to understand some key terms:
A merchant account is a separate bank account businesses use to hold money from customer transactions. This account is used until the funds are transferred to the business’s primary bank account. A payment gateway and a merchant account are required to accept online payments.
A payment processor is a service that authorizes a customer’s card details to ensure they have enough funds to purchase. If the customer does, the payment processor approves the transaction and sends the funds to the business’ account. If not, the transaction is rejected.
Here are a Steps in how online payments work with a payment gateway:
You must connect it with a payment gateway service to enable the capability of accepting online payments on your website
Customers purchase by clicking on a payment link and entering their credit or debit card information on your website.
The order and card details are sent to the payment gateway, where the card information is securely transmitted to ensure that only the customer, and their bank can access it.
The payment gateway verifies the customer’s card details and checks for sufficient funds. If everything checks out, the gateway proceeds with the transaction and uses anti-fraud tools to prevent fraud.
The payment gateway sends a request to the customer’s issuing bank to initiate the transaction, and the funds are transferred to the merchant bank and deposited into the merchant account.
The status of the transaction is sent as a notification to the merchant. The time it takes to receive payment varies depending on the payment gateway, with most payments received in real-time, but some may take up to 21 days if there are errors in processing.
How to integrate a payment gateway?
One option is redirecting customers from your website to the payment gateway’s page to complete the transaction. This method suits businesses with low online traffic, such as PayPal. However, this approach means that your company can only control a portion of the customer experience as it occurs on an external website.
An alternative approach is to keep your customers on your website while they complete their payments. This strategy benefits businesses that primarily generate income through online payments as it offers a seamless customer experience. However, companies must implement proper security measures to protect customer data when using this method.
Another option for processing payments is using an API (Application Programming Interface). This approach is comparable to keeping customers on your website during payment, but the transaction is handled through an API. Online Payment gateways like Easebuzz use an API that can be customized with your business’s name and logo and provide complete control over the customer experience. However, companies that choose this option are responsible for ensuring compliance with PCI (Payment Card Industry) regulations and obtaining an SSL (Secure Sockets Layer) certificate.
Overall, payment gateways simplify the online payment process for your business and help you receive payments faster, more conveniently, and with better security. If you’re considering receiving online payments or want to enhance the method you’re already using, a payment gateway is a suitable solution.
Payment Gateway Integration: Benefits versus Limitations
|Integration Method||Description||Advantages||Disadvantages||PCI Compliance|
|A third-party service that redirects customers to a payment gateway web page to complete a purchase.||Easy integration, no PCI compliance required, and all payment processing is taken care of by the service provider.||Lack of control over the payment processing and branding, and lower conversion rate.||No|
|Direct Post Method||Allows customers to shop without leaving your website, as the transaction’s data is posted to the payment gateway after a customer clicks a “purchase” button.||Customizable options, branding capabilities, and all necessary actions happen on one page.||Not completely secure||No|
|Non-Hosted (Integrated) Method||Merchants are responsible for storing, securing, and conducting initial verification for each transaction. A payment gateway solution is installed on the merchant’s website.||Full control over transactions, customizable payment system, and can become a source of revenue as merchants can process payments for other merchants for a fee.||Technological burden, and need an infrastructure to store transaction data, credit card tokens, Etc safely.||Yes|
PCI DSS compliance is only required for the Non-Hosted (Integrated) method.