Benefits of Using Payment Gateways
Definition of Payment Gateways
A payment gateway is a type of application found on the e-commerce website that is meant for linking the customer’s account with the one on the website. This payment gateway maintains the security of credit information. It makes money transactions to be so fast hence can be said to time-saving. Thus, online businesses have made to be easy through application payment gateways.
There are a number of payment gateways in the online market each having its own features. Some are more popular as compare to others. An example of commonly used payment are World Pay and PayPal
Categories of Payment Gateways
Commonly used payment gateways are The Shared gateways type and The Hosted gateways.
Hosted Type of Payment Gateways
These are categories of payment gateways which takes the perspective customer directly to the gateway page by making a simple click on the gateway payment link. After doing this simple step, you leave the website in a short period before being redirected to go back to the page. This category of payment gateway does not necessarily require the presence of a Merchant ID because you are not supposed to give your confidential information to your individual website. Examples of these categories of hosted payment gateways are World Pay and PayPal.
Shared Payment Gateway
This category of payment gateway requires the customer to go to the payment gateway page and remain on your website unlike the hosted one. After being redirected, a post form is produced to you immediately you click payment button. Payment gateway ensures that the safety of this page is well maintained. After recording all essential details and the required fields, the customer is free now to go back to his/her website. It has an advantage of maintaining the security of your website and so easy for using. Example of this payment gateway is 2Checkout.
Benefits of Payment Gateways
The first main importance of payment gateways is that no transactions can be carried without your permission. Other forms of online payments are not secure to transact with as compared to this because other online users can easily access your personal details for purpose of carrying out unauthorized transactions. But payment gateways allow only legal transactions to take place.
Another importance of payment gateways is that it keeps the safety of your data. Examples of hosted payment gateways like PayPal works towards ensuring their customers’ information are well intruders who may use them to carry unauthorized transactions.
Moreover, payment gateways like PayPal accept supports a large number of currencies and widely used among many countries. As a result, it supports currency exchange in the respective markets saving more time and money.
In addition, some payment gateways require simple steps to register yourself which has eased the payments and enabled many people to use it without any difficulties. This explains the reason why they offer their services so first in comparison to others.
Furthermore, payment gateways are considered to be cheap in their services because some of their examples like PayPal charge very low rates while performing transactions.
Finally, payment gateways are so convenient when it comes to withdrawing. This is as a result of them being in connection with the local banks. This makes it possible for customers to make withdrawals at any time that they wish from their local banks.
Thus, payment gateways can be considered as the best form of payment when it comes to online business in regard to the above benefits.