Magento Payment Gateway: 5 Benefits that Will Leverage Your Sales
Payment gateway integration is an indispensable tool to sustain an online business and meet the heightened demand. This gateway guarantees the authenticity of an e-commerce store while it increases security and makes online payments simple. The payment gateway processes the payments for local and online stores over credit cards. It assures secure payment for both – the buyer and the merchant. During leakages in data, these payment gateways offer additional security layers. These protection features prevent cybercriminal access to user information. One can Hire Certified Magento Developers to protect their crucial financial information during online transactions.
A payment gateway is a technology that gathers and transfers the financial data from the buyer to the seller. These gateways keep the movement of finances over the Internet running. The responsible parties present in the payment process include – the merchant, the customer, the bank, and the acquirer. The merchant either offers a product or facilitates a service or does both. The customer or cardholder hopes to use the product or service of the merchant and makes a transaction. The bank that issues the transaction serves the customer in compliance with the card schemes. The acquiring bank receives the transaction on behalf of the merchant and places the amount in the merchant’s account.
The Merchant Account
The merchant account is a particular bank account that is necessary for online trading and card payments. Some of the sources that offer these merchant accounts include acquirers, high street banks or ISO (independent sales organization), payment processors, PSPs (payment service providers) and payment gateways. The payments must pass the authorization and settlement from the acquirer for endorsement. Post-approval of the merchant account the seller obtains a MID or merchant identification number. The MID plays an important role to relocate funds from the customer’s bank to the account in the business bank.
The payment gateway then acquires the funds in the customer’s account and deposits them in the merchant’s account. These merchant accounts play an important role to keep the approval chain as the buyer offers the card details to obtain the money. However, some amounts of money that the online seller receives need to pay back over chargebacks or returns. The character of the business and the operation vertical determines the risk level in the transactions. The acquirer deducts the fund returns in the account of the merchant for that time. The funds that remain after the deduction transfers to the bank account of the business.
But, several external sources can pour in deposits in the payment gateway. Hence, the merchant account makes the payment procedure simple. The payment gateway gathers the deposits in the account of the merchant. It simplifies reconciliation as it gathers the accumulated deposits as a single deposit for the bank account. The payment reconciliation is a process. It contains PSP and matching with acquirer records to tally the payment amounts. The payment procedure also verifies the bank statements against the payment and accounting gateway. Therefore, a merchant who handles local and online stores should have a pair of separate accounts. These two accounts must manage the two different points of sale. The Merchant account can help the seller to send online payments or receive card payments through a payment gateway.
The Functions of The Payment Gateway
The payment gateway helps to validate the details of the card that belongs to the customer with security. It makes sure that the funds are available and facilitates payment for the merchants. The payment gateway functions as an interface or medium between the acquirer and the website of the merchant. The gateway makes sure that the passage of information remains secure from the buyer to the bank as it encrypts the crucial card details.
Therefore, the payment gateway operates like a middleman that bridges the customer with the merchant. Companies can Hire full time developers to make sure that the transaction swiftly takes place through proper security. These online payment gateways remove the unnecessary complications over software integration. Since the gateway serves as the middleman, it protects the important card details of the customer between the merchant and the acquirer.
The Five Advantages of Magento Payment Gateway to Leverage Sales
The major cause for the consideration of payment gateway integration is data security. The payment gateway offers various benefits for entrepreneurs over the online platform. They can increase their sales and provide reliable customer support. So, the five advantages of the Magento Payment Gateway includes
1. Round-The-Clock Purchase Access
The payment gateway offers round-the-clock access to the web store. The user customer can interact with shoppers late at night. They can undergo their financial transactions over these payment gateways.
2. International Expenditure
Several payment gateway providers offer additional features like multi-language services and multi-currency services. A business that prefers to catch up with the international market can use these added features as their business investment with some added expenses.
3. Payment Data Record
Payment gateway enables their daily clients to save their personal data. They do not have to re-enter their information in the system if they hope to make another transaction. The payment gateway enables the buyer to store various credit cards and use them for purchases.
4. Multiple Purchase Choices
The seller can receive several types of payments from their customers. The buyers can make their transactions over AmEx, PayPal, Visa, Discover or Mastercard.
5. Compliance With PCI (Payment Card Industry)
The merchants that accept the various types of card payments should have PCI compliance. The retailers do not have to worry about secure networks for PCI compliance as the web stores and payment gateways use various servers.
The Importance of a Payment Gateway
Well then, one can inquire about the need for a payment gateway in the first place if it operates through a middleman. Online payments possess a higher risk than normal hand-to-hand transactions. The lack of a card-swipe machine over an online transaction can increase the risk of fraudulence. But a payment gateway can solve this problem. It acts as the gate security for the payment information of the customer. These gateways encrypt the data as it moves it among the cardholder, seller, acquirer and the issuing bank. These data encryption systems help to secure the delicate and sensitive information in the card. Merchants can Hire Magento Developers to get a clear understanding of the additional protection they receive.
These payment gateways help to inform the merchant with expiry date updates, lack of adequate funds, closed accounts and/or surpassing credit limitations.
Organizations can Hire full time developers to secure their online financial transaction services.