eCommerce Payment Gateways

Online Payment Gateway resources and references

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How to integrate payment gateways

Payment Gateway Integration

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A payment gateway is a part of the website that you enter your payment details and the website itself credits the amount entered to your account that you created with the website. The advantage of such a payment gateway is that ii enables you to purchase goods and services online at the click of a button. Issues such as revealing your credit card information online which leads to fraud are those avoided by the website acting as a middleman. Payment gateways have been integrated in most e-commerce websites such as PayPal, money bookers and many more.

Electronic commerce also known as e-commerce is the purchase or sale of goods and services over electronic media which include the web and computer networks. E-commerce generally involves exchange of information regarding payment details and that is where payment gateways come in as a platform where the buyers can enter their payment details and thus be credited the amount in the payment details. Payment gateways have made e-commerce be more secure and it have been integrated in all the major e-commerce websites such as PayPal, EBay.

The following are integration of payment gateway in e-commerce systems:

WorldPay which offers the WorldPay gateway which you can access on their website. WorldPay is renowned as the being in the fore front in the credit/debit processing facilities. The company is owned by Royal Bank of Scotland and thus one is guaranteed of the authenticity of the website, as it is backed by a bank. A plus for the WorldPay system is that it offers highly competitive rates on accounts offered by the bank of Scotland.

SecPay is also another large provider of payment gateway functionalities. The system feature negotiable rates for monthly payments and varied option are offered for percentage deductions on all transactions. This means that you can save a lot of money. The downside to the system offered by SecPay is that you have to open an internet merchant account.

PayPal which was founded by EBay Inc. is the preferred choice for many customers the apparent success of the company has stemmed from their application of gateway facilities. This has made transactions secure and fast even from e-mail to PayPal money transactions! Opening an account is also fast and easy. The downside to PayPal is that if you wish to transact using PayPal you must have an account.

Nochex is another e-commerce system that has integrated payment gateway facilities. Nochex operates in the United Kingdom and operates like PayPal with the added advantage of that the users do not have to register. The only drawback is that it only operates in the United Kingdom and it is not as flexible as PayPal.

Payment processors are another important integration area of payment gateways. A payment processor is usually a third party company that handles all the credit card transactions on behalf of the merchant to the merchant acquiring banks. Payment processors are usually categorized into front-end processors and back-end processors.

Front –end processors usually have links with the many credit card associations and provide approval services to merchant banks’ merchants. Back-end processors receive settlements from front-end processors and through The Federal Reserve Bank, wire money from issuing bank to the merchant bank.

The operation of payment processors lasts for a short time typically a few seconds. The payment processors checks the actual details received by sending the particulars to the various credit card’s bank issuing bank and it also carries out a sequence of anti-fraud procedures against the transactions. Some optional parameters include deciphering the credit card’s country of origin and the payment history and the payment processor can also gauge the probability of the transaction being approved.

Once the payment processor receives confirmation that the credit card details have been ascertained to be true, the information of the verification is relayed back to the merchant via a payment gateway so as that the merchant can complete the transaction. In the case of denial of verification the payment processor still relays this information to the merchant for decision making.

Payment gateway is integrated into internet banking by the use of Merchant account. A merchant account is a bank account that is there specifically to handle only credit and debit card transactions. For online trading you will require both merchant and business account. The process is as follows payments are paid to a merchant account and then transferred to a business account.

A business account is the normal account that is maintained in the bank. The role of the business account in internet banking is that it references the credit card number. The payment gateway through the merchant account sends a request to the merchant’s bank to be allowed access to the business account. The bank liaises with the merchant account and accredits the request sending money to the merchant account. Hence access to the business account is strictly limited to the bank only, making online banking highly secure.

Payment gateways sometimes may provide their own merchant accounts as a one stop solution although merchant accounts are still provided by financial institutions. You should first check the rates provided by the institution before you subscribe to a certain merchant account as rates vary.

Payment gateways can be integrated with user interfaces. A user interface enables individuals to enter details with ease and thus very much user friendly. An added feature to most websites that support a payment gateway is the CMS (Content Management System) interface. CMS interface allows the developer of a payment gateway to create link that linkup with other e-commerce websites like PayPal.

Payment gateway integration is highly dependent on the host website. Most host websites require an individual to register before they can access the payment gateway. Security being a major concern when online money transactions are concerned, individuals have to be registered.

Also worth mentioning is that when selecting an appropriate host website for your payment gateway of choice, consider the options they offer. It is better to go for a one-stop solution than other options. A one stop solution means that a merchant account is integrated into your payment gateway. This move leads to faster transactions and a more secure payment gateway.