The technology that effortlessly connects the merchant and the customer with the payment network is known as a payment gateway.
What it’s work?
The payment gateway fetches the information of the client and sends it to the bank for the approval of the purchase. Once the bank sends the response message back, payment is sent to the website. The merchant and the customer’s sensitive information gets encrypted. The data is transferred securely from one portal to a related bank.
For increasing the sales you can have local bank integration with your payment gateway.
Do I face any difficulty in the payment gateway? Yes, we have thrown light on some of the challenges in a payment gateway like any other technology.
For card security, the business or merchant accepting the credit or debit cards needs to have PCI DSS (Payment Card Industry Data Security Standards) certification. PCI DSS certification meets the security requirements like cardholder data, secure network and system, maintaining security policy of information, monitors the network, and much more.
Cross Border Challenges
When using payment gateway the cross-border payments might be slow and ineffective but they are important in global trade. The cross-border payments can’t be handled by the national banking infrastructure, resulting in the development of independent software that complicates the cross-border transaction.
If a merchant or business deals in an international market, there would be a variety of currencies and payment methods for the transaction. For competing in the international market, they must allow their customers to pay in their native currencies.
Payment methods like e-wallet, mobile payments, and credit/debit cards can help the merchant in this case.
They will require a new bank account, new business entities, and regulatory hurdles in each national market for international or cross border payment. By choosing the payment service provider all these issues can be taken care of by offering an immediate and effective solution
As the business expands the threat of fraud arises in online payment. Even after security measures are provided to keep the data safe, fraudsters are eagerly looking for the loopholes for a security breach. Most of the common frauds are chargeback, data theft, and fishing.
Technical Knowledge is required to integrate the payment gateway to the website which lacks in most of the business owners. Hence integration is time-consuming and is a painful challenge for the store owners. Integration must be simple and accepts all kinds of information.
The usage of online payment is increasing day by day and lots of payment methods are available in the market. The business or the merchant must ensure the security of the payment gateway for the secured transactions.