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
payment gateways from other online merchants.online shop and bought one item each. At the end
The term seems to be a hush-hush, and soundsof the day, payment gateway gathers all these
like an exotic mumbo-jumboo jargon from sometransactions that occurred in your site and then
glib-talking finance guru you know practicallysends them all in one batch to your bank. In this
nothing about . As far as the term is concerned,way, your bank then collects payments from
you are in the dark. But your friends chatteryour customers and deposits them all in your
about it. And online businessmen speak praises foraccount.
it.5. A PAYMENT GATEWAY INCLUDES AN
To ease up your confusion, here are someEXCELLENT REPORTING TOOL
important things about payment gateway.The payment gateway software includes a
1. A PAYMENT GATEWAY IS A SOFTWAREreporting tool where you can view all your online
It is a computer program built particularly forshop's transactions. You can then review these
online shop owners. If you plan to put up antransactions, correct them, or store them in your
Internet based store, and you want browsingPC. So you stay up-to-date with your online site.
customers to purchase items from your site and6. A PAYMENT GATEWAY SCREENS
then pay online using their credit cards, then youFRAUDULENT CREDIT CARD TRANSACTIONS
direly need this software. With it, your customersWith payment gateway, you need not worry
can pay for their purchases and will knowabout dishonest customers using fake, cloned, or
whether their credit card payments are acceptedstolen credit cards. It contains highly-effective
or not.screening tools that screens out these fraudulent
2. A PAYMENT GATEWAY PROGRAM COMEStransactions.
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
cart, customers can browse the many productsyou up and orders some items from you. He has
displayed on your site, make the preferredno computer to key in his credit cards. With
selection-- color of the item, size, quantity, etc--payment gateway virtual terminal, this problem is
and then proceed to the virtual checkout countersolved. All Sam need to do is provide you with his
where the shopping cart software adds up all thecredit card information over the phone. Then you
cost of the items chosen. It then adds thecan manually enter this information into the
necessary shipping tax and other charges andpayment gateway software. Sam gets the items
then computes the total payment due. Thehe orders. You get the payments from his credit
shopping cart contains an online form wherecard. 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
3. A PAYMENT GATEWAY ENCRYPTS THEpayment gateway program. The good news is,
CARD INFORMATION SUBMITTED ONLINEthere are many firms that offers this service.
After the customer fills up the online form andTake time to scrutinize each of them. Then pick
clicks " SEND", payment gateway softwareone that meets your business style and your
encrypts the information and submits the data tobudget. Ciao!
the credit card processing company. The gateway( Kay Fione is an electronic banking authority with
then informs the customer whether his/her credityears of solid experience. She finished her Banking
card transaction is accepted or denied with theand Finance course as an honor student at the
appropriate return message. This whole processUniversity of Minnesota. She currently works as
passes through a very secure connection.an executive in an Australian bank. She loves
4. A PAYMENT GATEWAY OFFERS MERCHANTsnorkeling and writes business articles on her free
BATCH PROCESSINGtime. Amber lives with her husband and four kids.