Newly ventured into an online or rather e-commerce business? Then you a need a safe, trusted and fast payment gateway for your e-commerce website. A payment gateway? If you fumbled on this word, then don’t worry! The blog will perfectly guide you to master it’s meaning and working. Also, understand it’s importance in an e-commerce business.
What Is A Payment Gateway?
Most of the leading online businesses or e-commerce sites are supported by robust payment gateway services to process online payments made via various methods (credit cards, UPI, digital wallet, etc.) A payment gateway service provider bridges the gap between your customers, banks and your e-commerce business. The payment gateway safely passes all the sensitive information such as your customer’s credit card number, from end to the other.
Why Do You Need A Payment Gateway?
The ease and convenience provided by online payments to the customers have given a rise to online businesses in India. This ease and convenience comes up with the benefits online payments bring in:
- Secured & Protected Payments – Payment gateways are highly secured and encrypted as per industry standards. Hence, they can protect sensitive customer data such as credit card number, fraudulent activity or online theft.
- 24/7 Store – Being online means being available anytime and anywhere. Your customers can make a purchase anytime they want to.
- Shopping cart convenience – Online payment service providers facilitate customers with shopping carts for better shopping and complete checkout experience.
- Tracking abilities – You can track all your transactions (past and present) at one place.
- Multiple modes of transactions – You can make use of a credit card, debit card, net banking, UPI and even international currencies to make an online purchase.
- Multiple Device friendly – A payment gateway provides payment convenience of all sorts, be it on a desktop, laptop, mobile or a tablet, etc.
- Faster transaction processing – A payment service provider is much faster than manual processing. Your customers can make a purchase without any inconvenience of waiting in long queues.
- Integrated payments & settlements – Imagine if you have to deal with multiple banks every day to get your payments processed! The effort of individually reaching out to multiple banks naturally reduces by integrating with a payment gateway. It takes all the load on your behalf so that you can concentrate on building your business.
How Does A Payment Gateway Work?
Before you join hands with one, knowing the payment authorization flow of any transaction, that takes place on your e-commerce website is essential.
To understand the flow let’s make use of an example stated below:
You own an online jeans store and Gaurang, a customer liked a particular pair of jeans on your site. You have partnered with PayUmoney payment gateway to process your website transactions. In this case,
- It all begins with your customer! Gaurang decides to purchase the jeans your e-commerce site.
- He selects the jeans he wants to buy and Clicks on “Pay now” and is now redirected to the PayUmoney payment page.
- Here, he enters all the required information: VISA credit card number, CVV, expiry date on the page.
- The payment gateway requests the acquiring bank for a response.
- Once the acquiring bank authenticates the request, it forwards the request to the issuing bank (Gaurang’s bank).
- A reverse cycle begins after issuing bank authorization. Issuing bank sends the authorized response (approved or declined) to the acquiring bank.
- Acquiring bank sends this response to PayUmoney.
- The payment gateway sends the response to your e-commerce website.
- Finally, the transaction response is shown to Gaurang.
Initially, the above process may seem too overwhelming. But it gets completed in just a few seconds!
How Will You Get Payment In Your Bank Account?
Receiving payment from your customer for a specific product or service in your bank account is also known as payment settlement process. Before the payment finally gets transferred to your bank account, mentioned below are the various intermediaries involved(refer to the above example):
- A particular amount is deducted from Gaurang’s credit card, once he makes a successful transaction.
- This amount is routed via credit card networks to PayUmoney’s acquiring banking partners.
- The acquiring banks then initiates a response (accepted or declined) and forwards it to PayUmoney.
- The payment gateway transfers this amount in your bank account after deducing applicable transaction charges.
You will get the payment in your bank account in 2 working days after the transaction is made.
Secure Transactions With PayUmoney Payment Gateway
When it comes to payments, ‘safety’ concerns raise your eyebrows! PayU processes all your transactions from your customers to your bank account safely without any hassles. It is certified with industry’s highest level of security compliance; Payment Card Industry Data Security Standard (PCI DSS).
An online business is safest, with a payment gateway by its side. Now that you know what role a payment gateway plays in your business, its time to integrate with one! Sign up on PayUmoney to invite the best growth in your business now.