A payment gateway is a merchant-used software that serves as a portal for transactions made via credit card payments. Payment gateways help to enable smooth online sales and purchases. When a consumer clicks the purchase button on an e-commerce or merchant page, the payment gateway must store all details relevant to the transaction as mentioned above. From there, the request for payment would then be checked and submitted to the bank offering the credit card of the customer. The bank determines if there is credit available and then approves or rejects the request.
There are several payment gateways in the market. Researching and selecting the suitable onetakes time. In this article, we have busted the myths that may be confusing you. These are the myths that we want to debunk, and you can grasp exactly what you’re struggling with and how things are heading.
- Payment Gateways and Banking Are Identical
While facilitating the processing of online transactions, especially for e-commerce sites, is the bank’s responsibility; the function of payment gateways is much different from that of the bank. Payment gateways act as a mediator between the seller or buyer and the bank in charge of the payment process. You can’t exchange or interchange the responsibilities of payment gateways and banks. At almost the same time, payment gateways can not presume the facilities that people will get via banks, or provide them.
- Security Risks Remain High
The truth is that security features on many of the modern financial platforms have never been more secure. Both national and foreign regulatory bodies mandate all companies to use electronic systems to protect their clients from data breaches. Such protections now include tamper-proof microchips that encrypt each transaction’s details, including both routing and account number verifications, rendering it almost impossible for cybercriminals to decrypt and reveal the information.
- All Payment Gateway Offerings Are Similar
It’s true there are several payment gateways on the market provide more than one service, which is to process over-the-web transactions. Some payment gateways offer Digital Terminal Account functionality that enables web providers to swipe virtual cards, whereas other payment gateways do not have the function in their list of services. Businesses and online merchants can select a payment portal that is actively compliant with their goals, sales demands and the needs of consumers.
- Online Payments and Banking Charge More Fees
Today’s delivery of online debit and credit card transactions progresses quickly, which costs companies less to implement and handle. Since automated electronic systems can manage specific components of each operation, there is no longer a need for humans to process or enter the information.
- Inexpensive Rates Are Always A Perfect Option
While low-cost services can, at first sight, seem realistic and extremely appealing, the fact is that affordable prices do not always mean reliable service. Payment gateway prices are often low since the specifications are not in line with the rising demands and expectations on the market. And apart from low-cost deals and fixed rates, there are many other significant considerations to remember when selecting a gateway.