Payment Gateway Explained : 7 Important Things you Should Know About Payment Gateway

Have you noticed it yet? You keep hearing aboutFor example, fifteen customers browsed your online
payment gateways from other online merchants. Theshop and bought one item each. At the end of the day,
term seems to be a hush-hush, and sounds like anpayment gateway gathers all these transactions that
exotic mumbo-jumboo jargon from some glib-talkingoccurred in your site and then sends them all in one
finance guru you know practically nothing about . Asbatch to your bank. In this way, your bank then collects
far as the term is concerned, you are in the dark. Butpayments from your customers and deposits them all
your friends chatter about it. And online businessmenin your account.
speak praises for it.5. A PAYMENT GATEWAY INCLUDES AN
To ease up your confusion, here are some importantEXCELLENT REPORTING TOOL
things about payment gateway.The payment gateway software includes a reporting
1. A PAYMENT GATEWAY IS A SOFTWAREtool where you can view all your online shop's
It is a computer program built particularly for onlinetransactions. You can then review these transactions,
shop owners. If you plan to put up an Internet basedcorrect them, or store them in your PC. So you stay
store, and you want browsing customers to purchaseup-to-date with your online site.
items from your site and then pay online using their6. A PAYMENT GATEWAY SCREENS
credit cards, then you direly need this software. With it,FRAUDULENT CREDIT CARD TRANSACTIONS
your customers can pay for their purchases and willWith payment gateway, you need not worry about
know whether their credit card payments aredishonest customers using fake, cloned, or stolen credit
accepted or not.cards. It contains highly-effective screening tools that
2. A PAYMENT GATEWAY PROGRAM COMESscreens out these fraudulent transactions.
BUNDLED WITH A SHOPPING CART7. A PAYMENT GATEWAY OFFERS YOU
A shopping cart is a computer program for theVIRTUAL TERMINAL
exclusive use of online customers. With a shoppingLet take an example. Your old friend Sam calls you up
cart, customers can browse the many productsand orders some items from you. He has no computer
displayed on your site, make the preferred selection--to key in his credit cards. With payment gateway
color of the item, size, quantity, etc-- and then proceedvirtual terminal, this problem is solved. All Sam need to
to the virtual checkout counter where the shoppingdo is provide you with his credit card information over
cart software adds up all the cost of the itemsthe phone. Then you can manually enter this
chosen. It then adds the necessary shipping tax andinformation into the payment gateway software. Sam
other charges and then computes the total paymentgets the items he orders. You get the payments from
due. The shopping cart contains an online form wherehis credit card. It's as simple as that.
customers fill in with their credit card numbers andLastly, you can't just “ buy” this software. You
other pertinent customers' information.have to subscribe to a company that offers payment
3. A PAYMENT GATEWAY ENCRYPTS THEgateway program. The good news is, there are many
CARD INFORMATION SUBMITTED ONLINEfirms that offers this service. Take time to scrutinize
After the customer fills up the online form and clickseach of them. Then pick one that meets your business
“ SEND”, payment gateway software encryptsstyle and your budget. Ciao!
the information and submits the data to the credit card( Kay Fione is an electronic banking authority with
processing company. The gateway then informs theyears of solid experience. She finished her Banking
customer whether his/her credit card transaction isand Finance course as an honor student at the
accepted or denied with the appropriate returnUniversity of Minnesota. She currently works as an
message. This whole process passes through a veryexecutive in an Australian bank. She loves snorkeling
secure connection.and writes business articles on her free time. Amber
4. A PAYMENT GATEWAY OFFERS MERCHANTlives with her husband and four kids.
BATCH PROCESSING