As we know, a payment gateway is a payment service that allows businesses to provide various transactions. Not surprisingly, this one service is often used in physical stores. Not only that, payment gateway services can also be used by online shop owners.

When a buyer has selected a product and placed an order online, the customer can use the payment gateway service for face-to-face transactions using various types of payment methods. So, how do payment gateway services provide convenience for online payments? Check out the following explanation!

[Read also: Manual Sales Report or Automatic Sales Report, What Will You Choose?]

 

The components needed in the payment gateway

 

To process online transactions, payment gateway services will involve 2 components.

 

1. Merchant Accounts

 

A merchant account is a bank account account that is specifically intended so that businesses can receive payments. So, when there is a payment, the funds will be transferred to the merchant account belonging to the business actor. Later, these funds will also be transferred to the account number that you listed. Therefore, for online payment recipients, you need a payment gateway service and a merchant account.

 

2. Payment Processor

 

Apart from merchant accounts, payment gateway services also require a payment processor. The goal is to authorize card information details. In addition, the payment processor also plays a role in ensuring that the funds in the account are sufficient to be used for transactions. If the payment processor has authorized it, the payment will be sent to the business account. However, the transaction will be rejected if the authorization process fails.

[Read also: 7 Types of Security Measurement on Payment Gateway Services]

 

Online transaction flow using a payment gateway

 

To transact online, business actors need to provide payment gateway services, for example, such as using the Cashlez Payment Gateway Application or integrating these services into their e-commerce website. After that, the payment process can be continued until successful.

 

  1. If there is an order, the business actor can send a payment link that has been made in the payment gateway application. However, if the payment gateway service has been integrated into the website, the customer can process the transaction immediately.
  2. The customer will enter the information on their debit or credit card.
  3. Orders and card details are sent securely to the payment gateway. Only the customer and the relevant bank can access the card details.
  4. Then, the payment gateway service will verify customer details and ensure that the funds stored are sufficient for transactions. In addition, the payment gateway service will anticipate the risk of fraud.
  5. The payment gateway will send a request to the customer’s card issuing bank to initiate the transaction. After the issuing bank sends the funds, the funds will be processed and stored in the merchant’s account.
  6. After the transfer of funds is carried out, the merchant will be notified of the status of the transaction. Payment gateway services can process payments in real-time. So, once the payment has been made, the business actor can see the transaction report directly through the sales dashboard.

 

How to integrate payment gateways

 

Basically, there are several ways you can do to integrate payment gateway services. Of course, the method will depend on how the business owner wants to receive payments.

 

1. Redirections

 

This method will direct customers from your business website to make transactions. Then, on the payment processor page, they can enter data regarding card information and process payments.

 

2. Jump on the website

 

Different from the previous service, this payment gateway service actually allows customers to remain on the website until the transaction process is complete. This service is suitable for businesses whose income is mostly obtained from online orders.

 

3. Application Programming Interface (API)

 

In this type of service, the customer will fill in their card details directly on the online business payment page. However, the payment will be processed using an API and can be set using the business name and logo.

 

The presence of a payment gateway service helps customers and businesses to carry out online transactions in a practical, easy and safe manner. So, if you want to improve the quality of payment services and customer satisfaction, be sure to use the Cashlez Payment gateway! Register your business via https://merchant.cashlez.com/!

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