Payment gateways play an important role in making online payments on any e-commerce platform, by making a channel between receiving and making payments. A normal payment gateway has a procedure for receiving and making payments. The customer has to fill in some of the details like credit/debit card number, CVV and the expiry date.
The total payment happens with payment gateway and payment processor. A payment gateway is a tool that securely makes all the transactions with the online payments data and then transmits it to the payment processor to continue the transaction.
The main role of payment gateway is to communicate the approval or decline the transactions between you and your customer whereas the payment processor facilitates the transactions.
Payment gateways have a crucial role in online payment processing, which is discussed below.
Reduces Physical, Social or Temporal Distance
Just think of Uber or eBay, they solely exist to bridge the passenger with the taxi and the seller with the buyer. In the same way, irrespective of the physical, social or temporal distance, a payment gateway bounces in between the online payment processing system and directly connects the buyer’s bank, the acquiring bank, issuing bank and of course with the seller’s bank.
Improves the Connection between Two Parties
Think of a sophisticated billing logic with an impeccable checkout experience in place for your customers. After that, you’ll reach a point where you want to bring a payment gateway between you and your customer to make a smooth transaction. You have to think of it as a way to do an easy transaction with your customer by bringing a gateway that will securely handle them.
They make all the online payments or transactions like a breeze for both the seller and the buyer. Irrespective of the place where they are in the world, it reduces the security risks and all the manual intervention. In a few seconds, it makes the transaction online. It’s a boon for all the business owners or sellers making their online transactions securely and without any hindrance.
Minimizes the Risk or Uncertainties
With the use of HTTPS protocol, different payment gateways make everything in encrypted form with tokenized sensitive information to maintain the component of security. They easily comply with all the security standards like payment card data security standard.