We all know at least one person who is really afraid of shopping online—has a phobia for it. They find it hard to believe that one can actually get through an entire online shopping experience without any glitches without stepping out of their study. They assume the worst every time they even think of purchasing something online. When you dig into the fears these people have to shop online, it becomes evident that they have major concerns regarding payment security. It is a big deal for many to reveal credit/debit card information on the internet and make it vulnerable. It appears as if they are being asked to leap into the dark.
These fears may be allayed sooner or later, but as an entrepreneur, you will find numerous writers that talk about all the traits a successful e-commerce (and fearless) entrepreneur must possess. From resilience and flexibility to vision and passion, they are all listed down time and again but a knowledge of some fundamental systems like payment gateway services do not make the list. When it comes to e-commerce businesses, a mere attractive display of products is not the end of the story with everybody living happily ever after. You must have an in depth knowledge of all the facets of running a business. You need to invest ample amounts of time in studying your demographic, understand what they want, what you can change to increase the traffic tod your site, and most importantly how to provide security and comfort so they keep coming back.
So what can you, as an E-commerce store, do to help these sceptics and phobics feel less hesitant to shop on your website? You make the payment process work seamlessly just like the rest of your website so that your customers repose in you complete faith and go so far as to hand over personal information. An integrated payment gateway will help you gain that trust with your potential customers.
What exactly is a payment gateway?
A payment gateway enables online payment functionality for a business, allowing the business to accept payments in the form of credit cards, debit cards, net banking. and other payment types. It is a service that sends all user payment transactions to the bank/payment processor, and settles the funds to owed and by your business.
Basically, payment gateways ensure that the customer’s personal information such as credit card data, which is entered on e-commerce websites, are passed safely from the user to the merchant (you) and from you to the payment processor (bank) with a highly secured encryption.
Let us try and break down how the working of payment gateways:
Step1: Customer adds products to their cart and proceeds to checkout. Here they select a mode of payment and enter their credit card details. This is redirected to your payment gateway.
Step2: The credit card data is then sent to the bank processor for approval via your payment gateway.
Step3: Now the credit card issuer (bank) can accept or decline the transaction depending on the funds available in the buyer’s account.
Step4: Once the transaction is approved, the bank sends the authorization receipt to you and the customer.
Step5: Your product is sold and the payment is successful. It takes about 48 hours for you to receive that money.
All this can take place in a matter of seconds and hence it is imperative that you have a good payment gateway integrated into your e-commerce website.
It is not as complex as it sounds, like some kind of rocket science, but as an E-commerce website, you really are left with no other option. There is no way to process payments online other than using a payment gateway.
Traditionally, payment processors and payment gateways operated as separate entities but lately, a large number of processors have emerged to provide one-stop solutions.
What are the many benefits of integrating a payment gateway?
The growth of merchant account providers collaborating with payment gateway businesses has been quite simply exponential because of the numerous benefits for e-commerce merchants. Read on to know what they are:
Many people will continue to be frightened to hand over their credit/debit card information online, just as many people are afraid of flying. You cannot remove or exorcise everybody’s fears and phobias or cater to the whims and fancies of every one with a psychological hangover, but you can do what is within your power to mitigate the fears of your customers and make them feel at home. Choosing the right payment gateway and integrating it into your website will make for a great user experience. Not to say profits. Yes, your bank accounts will be swelling night and day, with business pouring from your neighbour to international clients.