A transaction on your website will only take a few moments through its payment gateway, even though there are a number of steps is has to go through in the secure online payment process. Understanding the payment gateway process will help you ensure your ecommerce business always offers secure online payment to customers. When customers trust your payment facility, they trust you as a business.
Here’s how a payment gateway interacts with your merchant account and your customer’s card provider:
- Customer inputs credit card details to your payment page
- This information is relayed to the payment gateway after being encrypted
- The payment gateway sends the card details to your merchant account
- Your merchant account sends the request for funds to the customer’s card provider
- The credit card provider verifies that sufficient funds are available, and the transaction is either approved or denied, with details relayed back to your merchant account
- The merchant account alerts the payment gateway to approval or denial, and the payment gateway retains a record of the transaction.
- Finally, funds are transferred from the customer’s card issuer through to the merchant account for onward processing to your bank account.
Your Payment Gateway Choice
There are two different ways in which your customers can access your payment gateway to process secure online payments.
The first is through an API (application program interface), which will require the payment gateway provider or your in-house IT department to integrate with your website server. The customer stays on your website where the payment page is housed. You will need to ensure your systems and processes are PCI DSS compliant and that you update for every change made in the law and secure online payment regulations.
Most SMEs, especially start-ups, decide to take the second option which is to use a third party site. In this case the payment page is provided and administered by the payment gateway provider, which takes on all the PCI DSS responsibility.
North Payments will be happy to help you make the right choice for your business. Call today to discuss your requirements and which payment gateway method will serve your best interests.