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What is a Payment Gateway?

With online purchases being as simple as visiting an eCommerce site, adding items to a shopping cart, and then completing the purchase via a checkout page within seconds, all while lounging around at home- it’s easy to understand why most cardholders now prefer internet shopping. This convenience, and the components that make it possible, is something many consumers will never think about… but for business owners it becomes a required part of your online site. Payment gateways are what make all of this possible- so let’s break down what they are/ how they work, the biggest benefit of using a gateway, and the costs associated with utilizing it.

What is a payment gateway and how does it work?

Simply, a payment gateway is the software that approves purchase transactions by encrypting card data (which is keyed in digitally by either the cardholder or the merchant). More technically, after a cardholder makes a purchase from your website, the payment gateway connects the customer’s credit card with the issuing bank to authorize the authenticity of the purchase and ensure that proper funds are available. If the transaction is approved, funds will be settled and later deposited in batches to your merchant account by the acquiring bank.

Most payment gateways will be able to integrate with your eCommerce website’s checkout page and any CRM technology you might already have. Plus, if you have a recurring payment business model, a payment gateway can help keep track of upcoming payments and subscriptions. And in case you’re wondering, navigating through most gateways will be pretty simple (even if you’re not tech savvy), making it easy for business owners to complete all desired transactions.

While there are many payment gateway service provides out there, not all of them are the same. Align eCommerce can streamline your search by offering your business access to our incredible payment gateway when you choose to process credit cards with us.

What is the benefit?

The biggest advantage of having a payment gateway is that it provides recorded transaction data that can be accessed in the future. These valuable purchase logs and recorded cardholder information includes details like date and time of purchases, cardholder names, and delivery addresses- which can help mitigate a lot of the headaches associated with potential refunds and chargebacks. Having this information can also help merchants defend their case when disputing an accidental chargeback initiated by the cardholder.

What are the costs associated with payment gateways?

Nothing in life is free (sadly), including the ability to utilize a payment gateway. Even though there is a wide range of transaction costs charged by other payment processors, Align eCommerce will work to provide you with a fair, low rate. In fact, we offer one of the lowest costs of $10 monthly while still maintaining a competitive per transaction fee based on your type of business.

Signing up for our gateway service is a quick and easy choice- it’s as simple as contacting us and receiving a link to create your login credentials. We will handle the rest! Here are some related articles that might help you in your journey.

7. How to Start Accepting Mobile Payments for Your Business in 3 Easy Steps Feel free to explore these articles to gain a clearer understanding of what a payment gateway is and how it plays a fundamental role in facilitating secure and seamless online transactions for your business!

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