How to Know About a Payment Gateway

You surely must have heard of payment gateways by now! As complicated as the term may sound as a part of the financial jargon understood only by financial gurus, you no longer have to remain in the dark. In fact, it’s of paramount importance that you learn what a payment gateway is and what is its functionality or role in the process of accepting credit card payments for your products or services.

Following are some important things about payment gateway.


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    Know what a payment gateway is. A Payment gateway is a computer program that works for online businessmen. If you plan to sell your goods online, then you need to have a Payment Gateway.
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    Learn how to use it. A Payment Gateway works in conjunction with a shopping cart software.
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    Using an online shopping cart, customers browsing through the products that you have showcased online, can select whatever they would like to purchase including its color, size, quantity, etc. After the decision to buy all the items has been made, the customer is allowed to proceed to the virtual checkout counter where the shopping cart software not only adds up all the cost of the items chosen, but also adds the necessary shipping tax and other charges to finally compute the total payment due. The shopping cart itself contains an online form where customers enter their credit card numbers and other pertinent customers' information.
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    Examine how it works. The card information entered is encrypted by the shopping cart software. Once the online form is complete, the customer clicks “SEND”. Then, the payment gateway software encrypts the information and submits the data to the credit card processing company. The gateway then informs the customer whether his/her credit card transaction is accepted or denied with the appropriate return message. The entire process is carried out under extreme security measures!
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    A payment Gateway offers Merchant Batch Processing. At the end of every business day, the payment gateway gathers all the transactions that occurred on your site and then sends them all in one batch to your bank. The bank then collects payments from customers and deposits them in your account.
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    A Payment Gateway includes a reporting tool. The payment gateway software includes a reporting tool where you can view all your online shop's transactions. You can then review these transactions, correct them, or store them in your PC. This way you stay up-to-date with your online site.
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    A payment gateway screens all transactions to check for fraud. With payment gateway, you need not worry about dishonest customers using fake, cloned, or stolen credit cards. It contains highly-effective screening tools that screens out these fraudulent transactions.
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    Use the Virtual terminal facility. With payment gateway virtual terminal, you can manually enter this information into the payment gateway software.
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    To get a payment gateway for your online business, you can either just buy it, or you can subscribe to a company that offers a payment gateway program. There are many firms that offer this service. Choose one that meets your business style, needs and budget.

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Categories: Online and Home Businesses