An online payment gateway: what is it and how does it work?
Many online business owners understand that despite a wide range of goods, and engaging design of the shop's web page, and easy navigation, customers still leave the page without purchasing. And, of course, the owner is eventually confronted with questions like, "What's the matter? What causes this to happen? How can the issue be resolved?” Some may wonder how to accept crypto payments. It’s easy to pinpoint that a satisfied customer is a direct investment in the future development of your business. After all, despite all of the points raised, the customer left because he couldn't figure out how to pay or because the payment gateway did not appear secure to him. We will discuss the concept of a credit card payment gateway and how to manage crypto pay (i.e. cryptocurrency payments).
What is a payment gateway?
A payment gateway is a type of transaction software that facilitates the payment process. It is one of the most important factors to consider because it impairs your company's profitability. Any customer making an online payment must be assured of the security of their personal and banking information. Payment gateways, in particular, can provide the necessary level of protection for economic transactions on the Internet because they encrypt the data, ensuring its integrity and confidentiality.
How does it work?
In a nutshell, a payment processor is a link that connects the e-store and the customer, allowing the buyer to securely pay for the selected goods and the seller to receive payment. While it may appear to be a simple process, it actually entails a number of significant steps:
- The buyer enters the personal details of the card he intends to use to make the payment.
- The data is transmitted to the user's financial institution for indication and approval.
- Data encryption protocols (SSL, or now TLS) are used to guarantee the secure transmission of the data over the internet.
- Then, once the data is accepted, the institution sends it back to the shop to proceed with the purchase.
- The bank then finally authorizes the collection.
- The amount is transferred from the customer's account to the shop through the payment gateway.
The payment gateway performs different types of transactions such as:
- authorization (when the payment is authorized, it verifies that the cardholder has sufficient funds to make the payment)
- payment processing (this process happens when the payment is authorized and the funds are sent to the bank account)
- sale (this is the process of combination of authorization and fixing of transactions)
- refund (in case of payment cancellation or for example, return of a paid coin)
- payment processing (this is the stage where funds are sent to the bank account)
- sale (it is a combination of authorization and fixing of transactions)
- refund (a refund is given when the payment is canceled)
What should I pay attention to when opting for the best payment gateway?
As previously stated, a payment gateway is a service that acts as a conduit between you and your customers. As a result, you must consider some of the factors that influence your decision.
Security. Always ensure that the payment gateway has the necessary security certificates, notifies the user that they are about to be redirected to another page, and has an easy-to-use interface.
A variety of payment methods. In addition to accepting credit cards, there can be a variety of other payment methods. For example, the bitcoin payment method. CoinPaid is a bitcoin payment gateway and business cryptocurrency wallet.
How to accept bitcoin payments? This is very easy to do with bitcoin credit card processing and credit card to bitcoin payment gateway.
Fraud protection system. An effective fraud protection processor is fundamental to online payments (especially when it comes down to crypto payments).
When offering CoinsPaid crypto payment processor we are getting entirely responsible for quality and security for your business. A reliable crypto payment processor helps any type of online business accept crypto payments and instantly receive an equal amount in local currency of their choice, or hold it and pay in cryptocurrency to their partners and affiliates. This is a cost-effective opportunity for businesses to start their own digital crypto payments business and become a coin payment gateway or bitcoin merchant service. Сypto pays using Bitcoin, Ethereum, USDT, and other digital currencies with a leading crypto payment gateway. We popularise new financial instruments - blockchain payment processing, but you can also buy bitcoin anonymously with a credit card.