If you are an online business owner looking to accept digital payments using buy now pay later, UPI apps, credit cards, debit cards, or net banking, you’ll require a payment gateway or a checkout solution which is a layer on top of payment gateways. Several business owners are mixed up about what explicitly this technology is. So, here’s everything you need to know about one click checkout, and how to set up one for your business.
What Is One Click Checkout?
A one click checkout shows the utmost ease, where customers don’t have to do additional clicks or steps to pay. They only need to click only once to pick up an item, put it in their shopping cart, and finally check out with a single click.
What Is a Payment Gateway System?
A payment gateway is a method that refers to and sends payment data from a client to the bank account of the merchant. Its work is to catch data, ensure funds are open and complete the payment.
It is a cloud-based software that links a client to the merchant. All the same, it’s the software developed into a POS (point-of-sale) system or card reader that moves a transaction when the cardholder employs their card to create a payment.
How Does a Payment Gateway Work?
Payment gateways constitute these key participants:
Merchant: The trade or any individual performing the sale.
Cardholder: This is the client who makes the purchase.
Issuing Organization or Bank: The financial organization that possesses the customer’s account, each of two, a credit card account or a verifying account linked to a debit card.
Card Schemes: These are credit card organizations that handle the card.
Receiving Bank: The financial company that supports the merchant’s account.
Working Process of a Payment Gateway
1. The cardholder starts the buying process.
2. The payment gateway starts the process and makes sure transactions don’t go beyond credit limit or account balance.
3. The payment gateway sends encoded card data to the card organizations for processing transactions.
4. The card companies authorize the transactions. The payment gateway sends the data again to the merchant site to finish transactions.
5. The payment gateway sends the data to the receiving bank to transfer money from the customer’s account into the merchant’s bank account.
Overall, the complete process takes only a few seconds—and it keeps getting quicker as technology grows.
Different Types of Payment Gateways
Three main types of payment gateways are:
Redirect Gateway: This payment gateway sends a customer to a payment processor in order to process the transaction.
Hosted or Off-site Payment Gateway: The customer goes ahead with a purchase on your site or at your retail place, and the payment detail reaches the server of the payment provider for processing. This is how POS (point-of-sale) systems run.
Self-hosted or On-site Payment Gateways: Full transaction takes place on your servers.
What’s The Need for Payment Gateway?
Payment gateways are imperative for any business that needs to accept money online using a credit card, debit card, or net banking. Technology spreads financial data all over crucial entities to enable payments and sends money from a client to a merchant.
Selecting a Payment Gateway
Whenever you select a payment gateway or payment service provider, ask these questions:
1. Is it accessible in your country and for your customers?
2. Does it keep financial data safe via encryption and different methods?
- Is it PCI compliant for digital payments?
4. Do you choose a self-hosted or hosted payment gateway?
5. Which payment method does it follow? Does it include your customers’ requirements?
6. Does it simply mix with your website, software, and point-of-sale?
7. Does it provide features your business looks for?
Starting A Payment Gateway for Your Business
Once you find out the usefulness of a payment gateway and its effect on your security and sales, it is time to consider these steps:
- Keep key preferences in mind. Verify the PCI consent of your prospective payment solution to make sure its security, and consistently search for per-transaction costs to get a view of how a gateway will affect your baseline.
- Know what your clients want. Whether you do not hold a payment gateway, there is a perception you may have that you require leveraging. Which payment solutions do your clients choose, and what is the most useful method to ease these choices?
- Pile up various gateways to fill voids. You do not need to pull off a single gateway for your remaining days. You can even bank up countless gateways at once to get the highest coverage for most clients’ needs.
With adequate knowledge of the cost, function, and security of the gateway, your business will be in the state to get the correct option for your business necessities and add a further level of security plus comfort that customers expect when buying something online.
If you own an ecommerce website, the easiest alternative is to go with a payment provider like Nimbbl and give your customers a one click checkout experience. They deal with the process all over, thus, you don’t need to think about fixing a further bank account or software.