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
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
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
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
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.