Where payment systems are concerned, there are two things involved. The two things involved are what it really is and what it’s not.
First, what is a payment gateway? A payment gateway is a piece of technology that processes credit/debit card payments for online businesses including eCommerce websites, betting sites & apps, fintech apps and traditional brick and mortar stores.
There are several misconceptions about what payment systems are and what they are not. Many business owners and consumers fear that payment gateways are not very secure, are being run by the traditional banks or payment services can only be provided by the banks.
We woke up feeling generous today, so here are five realities about payment gateways to help you know what they really are.
Payment Gateways are not like banking systems
It may surprise you to know that these are two different things, especially if you are a newbie.
Payment gateways are facilitators between a merchant’s customers, and the actual payment processors, that is, the banks. Both parties offer two separate functions, and so shouldn’t be interchanged.
In simple and clear terms, payment gateways facilitate transactions.
Payment Gateways take security seriously
Contrary to widely held belief, when it comes to customer data, payment gateways take extra measures in protecting them.
Because they are responsible for facilitating transactions which involve extremely sensitive data like bank card details, it’s necessary that this is done under the most secure environment.
Payment systems are PCI-compliant. This means that they have all met a set of comprehensive requirements that all businesses that handle credit and debit payments must comply with, no matter how many transactions they process. SeerBit is PCI Compliant.
Payment Gateways do not have access to customer’s money
Let’s break it down this way, when a customer places an order on a merchant’s website and follows it up by making payments, what a payment gateway does is help process this transaction using the data provided which is then forwarded to the respective bank.
The bank confirms the payment, relays the information to the payment gateway, who in turn passes it to the merchant, then to the customer. And the cycle begins all over again.
Payment Gateway services are not cheap
I bet it’s safe to say that we all do not want to find ourselves in a ‘what I ordered vs. what I got’ type of situation.
That said, if you’re considering a payment gateway, your top priority should be the level of security being provided, for obvious reasons. There are also fund processing wait times to consider, customer service, among others. And be rest assured that these things don’t come cheap, this does not mean you should splurge unnecessarily, keyword being “unnecessarily.” However, ensure that you are getting value for your money.
Payment gateway services are not exclusive to banks
Did this one come as a shocker to you? Truth is, there definitely are banks who provide these services, but there are platforms who do this outside the banking systems, like SeerBit. And if you ask us, it’s a better option because you’ll enjoy the independence and flexibility that comes with this.
We bet you’re feeling like a genius now that you know what payment gateways really are, and what they aren’t.
If you are feeling up to it (we know you are), why not share this post with everyone.