The online business world is divided into many industries, the major being the part that deals with the selling and buying of products. The e-commerce world deals with many different clients hailing from all over the world, each e-commerce business concerned with the selling of multifarious products. However, as the website deals with marketing, there is a question of safe and direct monetary transaction.
For this reason, e-commerce providers came up with the solution of providing a way of making a direct and secured transaction. This is known as the payment gateway, a service that has been established to process different credit and debit card payments for both traditional and online markets.
Over the years, this method of transaction service has become popular and now, it is an integral part of the e-commerce business. There are many reasons, which can easily describe the need of introducing this payment gateway service in the business, some of which are:
Forming a bridge between the customer and the seller party
A payment gateway is like the provider of bricks to build the connection between the customer who is buying the product and the e-commerce business owner who is selling the product. The virtual connection between both the parties has reduced the complexity of physical payments and hence has helped the spurting of e-commerce business.
Ensures the customer’s authenticity
This is like an antivirus to the e-commerce business. Payment gateway scans the details of the credit or the debit card of the customer for any fraud and then allows the transaction. It also prevents the scams that are quite frequent in the online market industry.
Establishes a coordinated and timely functioning of the blocks
An e-commerce financial transaction consists of four different blocks, sending the card details from the customer’s bank account, verifying the details by the issuing bank and authorizing the payment, acceptance of the amount by the acquiring bank and finally the transferring of the correct amount in the seller’s bank account. Payment gateway helps in building coordination amongst these blocks, thereby ensuring smooth transactions.
As payment gateway controls the entire financial transaction department, it is recommended to secure the service from cyber thefts and breaches. Hackers can easily intercept the unprotected gateway mechanism and steal important bank details, cause frauds in the transaction and many other scams. This is why maintaining a top tight security of the payment gateway is necessary.