Do You Know About Payment Gateway?
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Do you know what a payment gateway is ? In this blog, we will discuss some basic facts regarding payment gateway , such as what it is, its terms and its types.
ABOUT PAYMENT GATEWAY
A payment gateway is a network that allows your customers to transmit funds to you. Payment gateways are remarkably similar to the point-of-sale terminals seen in most physical stores. Customers and businesses must collaborate to complete a transaction when using a payment gateway. After your customer places a purchase, the payment gateway verifies the customer's credit card information and determines whether they have enough funds in their account to pay you.
THREE TYPES OF PAYMENT GATEWAYS
DIRECT BOOKINGS :- Direct bookings occur when a customer books a hotel room directly with the hotel, either online or through a telephone call. This type of booking is beneficial to hoteliers as it allows them to keep more of the revenue from the booking.
MERCHANT :- A merchant account is a separate bank account for receivables used by businesses. During a transaction, your customer's payment is initially deposited to your merchant account, where it remains until you transfer it to your company's main bank account. Accepting online payments necessitates the use of both a payment gateway and a merchant account.
PAYMENT PROCESSOR :- A payment processor is the service that authorises the client's card data to ensure that they have enough funds in their account to pay when a business charges a customer for a purchase. If they do, the payment processor authorises the transaction and the funds are transferred to the business' account; otherwise, the transaction is refused.
Let come to the types
Hosted payment gateways :- When a customer clicks the 'purchase' button on the merchant website using this payment gateway, the system transfers the customer to the payment service provider's website. The customer must now enter the necessary card or bank information. Following confirmation, the customer returns to the merchant's website to receive an order confirmation message. Merchants might place their logo on the payment page to boost client confidence.
Self-hosted payment gateways :- The customer must enter their card or bank information on the merchant's website in order to use this payment gateway, also referred to as pro-hosted payment gateways. Customers could be required to submit data in a particular format. The information is subsequently sent to the payment gateway's URL after submission. It enhances the customer experience to have it as it is on the merchant's website.
API hosted payment gateways :- In this payment gateway, the customer enters their credit card or bank information on the merchant's website. Payments are made via HTTPS queries or APIs rather than redirecting to the URL page. The merchants have total control over the entire purchasing process. However, in order to provide this service, merchants must have SSL certification and be DSS compliant.
CONCLUSION
After reading the above post, you should have a good understanding of what a payment gateway is. Analyse your company's demands before selecting the best payment gateway.
