Whether you have a brick-and-mortar business or an online e-commerce store (or both), you want to provide several methods for accepting payments from your customers. Doing so is both good customer service and a means to increase your chances of completing a sale. To facilitate the payment process as well as provide a secure transactionAn act between a seller and a cardholder that results in either a paper or an electronic representation of the cardholder’s promise to pay for goods or services received from the act. The action between a cardholder and a merchant that results in financial activity between the merchant and cardholder’s account...., you will need to use a payment gatewayA payment gateway is a combination of hardware and software that provides merchants with the ability to perform real-time credit card authorizations from a website over the Internet. It’s the link between a merchant website and the processor..
What is a Payment GatewayA payment gateway is a combination of hardware and software that provides merchants with the ability to perform real-time credit card authorizations from a website over the Internet. It’s the link between a merchant website and the processor.?
A payment gatewayA payment gateway is a combination of hardware and software that provides merchants with the ability to perform real-time credit card authorizations from a website over the Internet. It’s the link between a merchant website and the processor. is a sophisticated piece of technology designed to read a customer’s payment information and transfer the data to the merchant’s account. While this sounds like a rather simple process, there are actually several steps that occur within seconds of a customer initiating a payment.
In a physical store location, a payment gatewayA payment gateway is a combination of hardware and software that provides merchants with the ability to perform real-time credit card authorizations from a website over the Internet. It’s the link between a merchant website and the processor. can be a part of a wired terminalThe device by which a transaction is transmitted to the acquiring bank. or mobile swiper. Payment gateways can also work in conjunction with wireless terminals, which allow payments to be accepted at any point in the store.
When used as part of an e-commerce site, the payment gatewayA payment gateway is a combination of hardware and software that provides merchants with the ability to perform real-time credit card authorizations from a website over the Internet. It’s the link between a merchant website and the processor. typically exists as cloud-based software. The software handles the online transactionAn act between a seller and a cardholder that results in either a paper or an electronic representation of the cardholder’s promise to pay for goods or services received from the act. The action between a cardholder and a merchant that results in financial activity between the merchant and cardholder’s account.... and processes the payment.
Difference Between a Payment GatewayA payment gateway is a combination of hardware and software that provides merchants with the ability to perform real-time credit card authorizations from a website over the Internet. It’s the link between a merchant website and the processor. and a Payment ProcessorA large data center that processes credit card transactions and settles funds to merchants. A processor connects to the merchant on behalf of an acquirer via a gateway or POS system to process payments electronically. Processors edit and format messages and switch to bankcard networks. They provide files for clearing and settlement and other value-added services....
A payment gatewayA payment gateway is a combination of hardware and software that provides merchants with the ability to perform real-time credit card authorizations from a website over the Internet. It’s the link between a merchant website and the processor. and a payment processor work in conjunction with one another, but both have a very distinctive role. The purpose of the payment gatewayA payment gateway is a combination of hardware and software that provides merchants with the ability to perform real-time credit card authorizations from a website over the Internet. It’s the link between a merchant website and the processor. is to collect and transfer a customer’s payment data to the appropriate merchantA business that accepts credit cards for goods or services. account. The payment processorA large data center that processes credit card transactions and settles funds to merchants. A processor connects to the merchant on behalf of an acquirer via a gateway or POS system to process payments electronically. Processors edit and format messages and switch to bankcard networks. They provide files for clearing and settlement and other value-added services.... uses the information collected by the payment gatewayA payment gateway is a combination of hardware and software that provides merchants with the ability to perform real-time credit card authorizations from a website over the Internet. It’s the link between a merchant website and the processor. to connect to the customer’s bank or credit card issuerA bank that issues credit cards to consumers. in order to confirm the payment and charge the customer.
Without the payment gatewayA payment gateway is a combination of hardware and software that provides merchants with the ability to perform real-time credit card authorizations from a website over the Internet. It’s the link between a merchant website and the processor. first collecting the customer’s payment data, the payment processorA large data center that processes credit card transactions and settles funds to merchants. A processor connects to the merchant on behalf of an acquirer via a gateway or POS system to process payments electronically. Processors edit and format messages and switch to bankcard networks. They provide files for clearing and settlement and other value-added services.... would not be able to move forward with the completion of the sale. The payment gatewayA payment gateway is a combination of hardware and software that provides merchants with the ability to perform real-time credit card authorizations from a website over the Internet. It’s the link between a merchant website and the processor. must first authorize the transfer of the financial data. Then, the payment processorA large data center that processes credit card transactions and settles funds to merchants. A processor connects to the merchant on behalf of an acquirer via a gateway or POS system to process payments electronically. Processors edit and format messages and switch to bankcard networks. They provide files for clearing and settlement and other value-added services.... can ensure that the merchantA business that accepts credit cards for goods or services. gets paid.
How Payment Gateways Work
Although a payment in a physical store or online appears to involve only the merchantA business that accepts credit cards for goods or services. and the customer, there are additional parties involved in each transactionAn act between a seller and a cardholder that results in either a paper or an electronic representation of the cardholder’s promise to pay for goods or services received from the act. The action between a cardholder and a merchant that results in financial activity between the merchant and cardholder’s account..... These include the financial institution that the customer has an account with, a credit card issuerA bank that issues credit cards to consumers., and the bank with which the merchantA business that accepts credit cards for goods or services. has an account.
When a customer makes a payment, the payment gatewayA payment gateway is a combination of hardware and software that provides merchants with the ability to perform real-time credit card authorizations from a website over the Internet. It’s the link between a merchant website and the processor. software will collect the payment data. This can be done by a customer using a card at a physical POSThe time and place a sale takes place. Also refers to the devices used to transmit the credit card transaction. terminalThe device by which a transaction is transmitted to the acquiring bank., swiper, or wireless terminalThe device by which a transaction is transmitted to the acquiring bank., or by entering card information online. The data is then encrypted and sent to the payment processorA large data center that processes credit card transactions and settles funds to merchants. A processor connects to the merchant on behalf of an acquirer via a gateway or POS system to process payments electronically. Processors edit and format messages and switch to bankcard networks. They provide files for clearing and settlement and other value-added services..... The payment processorA large data center that processes credit card transactions and settles funds to merchants. A processor connects to the merchant on behalf of an acquirer via a gateway or POS system to process payments electronically. Processors edit and format messages and switch to bankcard networks. They provide files for clearing and settlement and other value-added services.... forwards the information to the appropriate financial institution or credit card issuerA bank that issues credit cards to consumers..
The credit card issuerA bank that issues credit cards to consumers. or bank verifies the data and whether funds are available. The data is then sent back to the payment processorA large data center that processes credit card transactions and settles funds to merchants. A processor connects to the merchant on behalf of an acquirer via a gateway or POS system to process payments electronically. Processors edit and format messages and switch to bankcard networks. They provide files for clearing and settlement and other value-added services.... with an approval or denial of the transactionAn act between a seller and a cardholder that results in either a paper or an electronic representation of the cardholder’s promise to pay for goods or services received from the act. The action between a cardholder and a merchant that results in financial activity between the merchant and cardholder’s account..... The processorA large data center that processes credit card transactions and settles funds to merchants. A processor connects to the merchant on behalf of an acquirer via a gateway or POS system to process payments electronically. Processors edit and format messages and switch to bankcard networks. They provide files for clearing and settlement and other value-added services.... sends this message to the payment gatewayA payment gateway is a combination of hardware and software that provides merchants with the ability to perform real-time credit card authorizations from a website over the Internet. It’s the link between a merchant website and the processor., which then enables the payment to be processed and transferred to the merchant’s account.
How to Choose a Payment GatewayA payment gateway is a combination of hardware and software that provides merchants with the ability to perform real-time credit card authorizations from a website over the Internet. It’s the link between a merchant website and the processor.
When you open an account with a payment service provider, you typically receive whichever payment gatewayA payment gateway is a combination of hardware and software that provides merchants with the ability to perform real-time credit card authorizations from a website over the Internet. It’s the link between a merchant website and the processor. technology they utilize with their systems and hardware. But not all payment gateways are created equal. You’ll want to be sure to choose a payment gatewayA payment gateway is a combination of hardware and software that provides merchants with the ability to perform real-time credit card authorizations from a website over the Internet. It’s the link between a merchant website and the processor. that not only provides a secure and reliable interface for your business, but also a good payment experience for your customers.
The first criteria you’ll want to compare when researching payment services providers are cost, features, and support options. This should enable you to eliminate a few options from the start and then focus better on the remaining choices. Then you can compare the different features of each payment gatewayA payment gateway is a combination of hardware and software that provides merchants with the ability to perform real-time credit card authorizations from a website over the Internet. It’s the link between a merchant website and the processor. more in-depth.
Consider these important questions when researching payment gateways.
What levels of security and encryption does the payment gatewayA payment gateway is a combination of hardware and software that provides merchants with the ability to perform real-time credit card authorizations from a website over the Internet. It’s the link between a merchant website and the processor. provide?
Is the payment gatewayA payment gateway is a combination of hardware and software that provides merchants with the ability to perform real-time credit card authorizations from a website over the Internet. It’s the link between a merchant website and the processor. (PCI) compliant?
What features does the payment services provider offer and will they benefit your business?
What payment methods will the payment gatewayA payment gateway is a combination of hardware and software that provides merchants with the ability to perform real-time credit card authorizations from a website over the Internet. It’s the link between a merchant website and the processor. accept?
Does the payment gatewayA payment gateway is a combination of hardware and software that provides merchants with the ability to perform real-time credit card authorizations from a website over the Internet. It’s the link between a merchant website and the processor. accept enough payment methods to satisfy the needs of your customer base?
Can the payment gatewayA payment gateway is a combination of hardware and software that provides merchants with the ability to perform real-time credit card authorizations from a website over the Internet. It’s the link between a merchant website and the processor. be easily integrated with your website and POSThe time and place a sale takes place. Also refers to the devices used to transmit the credit card transaction. equipment?
You’ll also want to choose a payment gatewayA payment gateway is a combination of hardware and software that provides merchants with the ability to perform real-time credit card authorizations from a website over the Internet. It’s the link between a merchant website and the processor. that can be scaled appropriately as your business grows. Consider the payment flows of each payment gatewayA payment gateway is a combination of hardware and software that provides merchants with the ability to perform real-time credit card authorizations from a website over the Internet. It’s the link between a merchant website and the processor. and see which is most appropriate for your business.
Support is also an important aspect to consider. You’ll want to work with a payment services provider that provides outstanding customer support and is readily available to assist with any troubleshooting. You’ll feel more comfortable with a payment services provider that offers strong support options.
Lastly, security is also a key factor. Customers expect their transactions to be secure, especially when they make a purchase online. Secure payment options are a must.
Many businesses ultimately choose or make the switch to National Merchants Association, which combines industry expertise with personalized service to create a positive impact for your business.
About National Merchants Association (NMA)
National Merchants Association (NMA) is a merchantA business that accepts credit cards for goods or services. advocacy group dedicated to reducing or eliminating the unnecessary fees associated with accepting credit card payments. Since 2004, NMA’s payment processing solutions have been delivering tailored solutions, best-in-class customer service, and high-quality service offerings for businesses across multiple industries. Whether it’s high-risk or low-risk, brick-and-mortar or e-commerce, NMA will create the best processing experience for your company. For more information, visit us at legacy.nationalmerchants.com or call (866) 509-7201.