A payment gateway is a service that authorizes and processes debit/credit cards for online traders and standard retail, and offline traders. It facilitates the flow of transactions by confidently encrypting data and replacing it between the website and the bank. Let’s talk more in detail.
A payment gateway can be also called a gateway that allows your customers to transfer funds securely and efficiently from their credit cards or bank accounts in a variety of currencies. It also helps them make both one-time and subscription-based, and offers many other value-added services including billing, invoicing, and sales tax automation.
Gateways are very convenient. They provide a simple and convenient connection, as well as a high level of transaction security. It is not without reason that experts themselves prefer to use modern gateways. The maximum level of security is achieved by coding. It is a matter of transactions being protected.
The amazing thing is that it takes a couple of seconds to make a financial transaction, although in this minimal amount of time you can see that there is more than one process going on. It includes:
- Switching the user to a page that is protected;
- Placing an order;
- Transmission of classified data to the gateway (this includes not only the number of the card with which the transaction takes place and CVV2 but also the date on which it occurs).
Contacting the bank that issued your card.
If no problems were found, the transaction is confirmed, otherwise, denial occurs. The response is then sent to the unified payment platform, which passes it on to your site. The final step is to create a response. If it is positive, the counterparty proceeds to fulfill the order. You can read more on Corefy`s site.
How the unified payments platform works
The main thing in the gateway is to take the money, to transfer the records from one plate to the same plate with a “minus” sign. That doesn’t sound very complicated until the lawyers came along. All over the world are subject to a huge amount of all sorts of burdens and guidelines. So in the development of a payment system, we have to keep balancing between a heavy enterprise and a quite normal scalable web application.
A unified payment interface takes care of all the tedious and arduous work of processing payment systems by providing a robust technical infrastructure through a single, developer-friendly API. In addition, the API is easy to integrate and comes with various libraries or documentation that can be integrated into your e-commerce website. In addition, APIs set clear expectations about what is possible and how to do it. So instead of learning complex rules about banking, accounting, and the credit card industry (PCI), developers do only what they do best: write code
If your business needs to make online transactions (via credit or debit cards and mobile wallets), you can choose the unified payment interface, as it becomes the backbone of online business today. By making the process of moving money simple, limitless, and programmable, the payment system has become very much in demand.
Some of the world’s largest companies, such as Amazon or Shopify, use the payment system as a reliable gateway because of its reliable security and availability of the best development tools.
When searching for a convenient payment system for cooperation, it is necessary to pay attention to the following aspects:
- orientation — individuals, large/small businesses, specific activities;
- understandable charging system (no hidden fees);
- usability — a simple interface in an understandable language (preferably Russian), wide functionality, easy-to-use analytics;
- adequate Russian-speaking support;
- availability in any region;
- gateway works with a large number of currencies;
- license availability and its expiration date;
- availability of mobile applications;
- high-level security (availability of security certificates, two-factor identification, modern encryption standards);
- reputation (presence of negative references);
- availability of a wide range of financial services: cross-border transfers, international payment cards, personal and corporate accounts, deposits, and currency exchange.
Let’s look at some examples of such a unified payment interface:
Any Facebook user can use Facebook Pay while on Facebook, Instagram, or the website. As long as users keep their debit card, credit card, or another payment gateway in their Facebook account, the process is simple.
Customers place an order, select Facebook Pay and enter their PIN to complete the transaction. In addition to PINs, users can decide on biometric identification methods. Customers don’t have to enter their payment card number for every transaction when using
Facebook Pay also works well for small business owners. However, it works well with most payment processing and e-commerce platforms. Customers can use Facebook Pay without logging into their Facebook profiles, making online payments much more efficient. No more entering information or addresses; just a click or two is enough. Customers can use Facebook Pay to buy almost any product or service.
Apple Pay is a simple, secure, and confidential way to the gateway for purchases in stores, programs, and online. You can also use Apple Pay to exchange money with friends and family directly in messages (the U.S. only). And contactless rewards cards in Wallet allow you to receive and redeem rewards when you pay with Apple Pay. Apple Pay is designed with security and user privacy in mind, making it easier and safer to make payments than using physical credit, debit, and prepaid cards.
Transactions with Apple Pay are protected by security features built into your device’s hardware and software. In addition, to use Apple Pay on your device, you must set a password and, optionally, configure Face ID or Touch ID. You can use a simple password or a more complex password for even more security.
Apple Pay is also designed to protect the user’s personal information. Apple does not retain the original credit, debit, or prepaid, card numbers added to Apple Pay and have no access to them. When you use a credit, debit, or prepaid card with Apple Pay, Apple does not collect any transaction information that could identify you: all transactions are between you, the merchant or developer, and the bank or card issuer.
Contactless payment service from Samsung, as well as its counterparts Apple Pay, and Google Pay, supports NFC contactless technology. The gateway makes the payment using a secure protocol, which prevents the leakage of card data. To pay is enough to bring the device to the reader.
But Samsung has decided not to stop there and has added a payment function MST, imitating the magnetic stripe of plastic cards. That is, the smartphone can be used to pay for a purchase even if the terminal does not support contactless. The device broadcasts a virtual magnetic stripe within a radius of 7-8 centimeters.
The manufacturer has also provided additional protection for the personal data and bank details of the smartphone owner. In addition to the standard security measures provided by NFC technology, a dynamic code system is used.
The undisputed leader in the industry, which has been on the market for more than 20 years. The service allows merchants to easily accept payments system, and buyers to make purchases quickly and securely. Payment by PayPal method anywhere in the world, on any site in itself, is a guarantee that the user’s payment data and funds will remain intact, and the seller will fulfill his obligations.
As already mentioned, PayPal is known almost everywhere in the world. Because of its popularity and high level of trust in the payment gateway, buyers make orders without any doubts. Increased conversions. As a consequence of widespread distribution and worldwide recognition.
Recently a company conducted a study among 28,000 thousand people from 32 countries, the results are striking:
- 59% of users abandoned the transaction because of the lack of payment through PayPal;
- 51% of consumers trust companies more if the site has the ability to pay through PayPal;
- 37% of consumers are more likely to make purchases where PayPal payment system is available.
Despite the fact that when clicking on the payment button, a person is redirected to the PayPal site, the process of placing an order is quite simple and convenient. PayPal Express Checkout, when integrated with Shopify and other platforms, allows the client to pay for the order in one click, with all the contact information and shipping data being pulled up automatically (if the person is logged into the account on the device from which they are visiting the site).
Stripe is one of the most popular gateways for accepting bank cards in the world. The system is distinguished by its high speed of unified payment interface and security, and from the business point of view — very convenient integration with websites and online stores. Stripe meets international security standards, with PCI Level 1 certification. This is the highest level of certification available in the payments industry. The payment processing fee is 2, 9% + 30¢.
It accepts any bank card. Based on this, you can work with a wide variety of GEOs and not have to worry about visitors not having their payments processed.
Quick Payment. Stripe allows you to quickly place and pay for orders right on the product page using Google Pay and Apple Pay. To do this, you need to enable the Dynamic checkout button in the theme settings if you are using Shopify. Next, a convenient payment form right in the checkout without redirecting to a third-party site. During the checkout process, the visitor stays on the site, which definitely increases the conversion rate.
Advanced Anti-Fraud System. Stripe Radar determines the risk level of the unified payment platform, and 3D Secure technology reduces the likelihood of checkout fraud. Read more on Corefy`s site!