An online merchant always strives to know more about the e-Commerce business. And by now, if you are an adept merchant, you would have heard about payment gateways! Merchant newbies may be intimidated by this seemingly “heavy” word but fret not, we will enlighten you about how it works. Read on!

1. A Payment gateway is a computer program that works for online businessmen. If you plan to sell your goods online, then you need to have a Payment Gateway.

2. A Payment Gateway works in conjunction with a shopping cart software using an online shopping cart, customers browsing through the products that you have showcased online, can select whatever they would like to purchase including it’s color, size, quantity, etc. After the decision to buy all the items has been made, the customer is allowed to proceed to the virtual checkout counter where the shopping cart software not only adds up all the cost of the items chosen, but also adds the necessary shipping tax and other charges to finally compute the total payment due. The shopping cart itself contains an online form where customers enter their credit card numbers and other pertinent customers’ information.

3. The card information entered is encrypted by the shopping cart software. once the online form is complete, the customer clicks “SEND”. Then, the payment gateway software encrypts the information and submits the data to the credit card processing company. The gateway then informs the customer whether his/her credit card transaction is accepted or denied with the appropriate return message. The entire process is carried out under extreme security measures!

4. A payment Gateway offers Merchant Batch Processing. At the end of every business day, the payment gateway gathers all the transactions that occurred on your site and then sends them all in one batch to your bank. The bank then collects payments from customers and deposits them in your account.

5. A Payment Gateway includes a reporting tool. The payment gateway software includes a reporting tool where you can view all your online shop’s transactions. You can then review these transactions, correct them, or store them in your PC. This way you stay up-to-date with your online site.

6. A payment gateway screens all transactions to check for fraud.With payment gateway, you need not worry about dishonest customers using fake, cloned, or stolen credit cards. It contains highly-effective screening tools that screens out these fraudulent transactions.

7. Virtual terminal facility.With payment gateway virtual terminal, you can manually enter this information into the payment gateway software.

No related posts.

Related posts brought to you by Yet Another Related Posts Plugin.