Question about payment gateway services

Discussion in 'Website Development & Design' started by AverageJoe, Feb 12, 2010.

  1. AverageJoe

    AverageJoe
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    I just want to know how they work and what exactly do I do on my end whenever someone buys something from my site.
     
  2. Fergal

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    A payment gateway service is a service that authorises payments made on online stores. You can view a good article that describes payment gateway services here on Wikipedia.

    If you are just starting an e-commerce store you probably don't need to worry about the technicalities of a payment gateway just yet. You could start with something like http://2co.com/, Google Checkout or even start selling through eBay, Amazon or Yahoo Merchant Services.

    Does that answer your question or do you require something more specific? Are you planning on launching an online store?
     
  3. DEADMAN

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    I believe it's a software that you'll be using for your ebusiness. You'll be informed about the purchased made to your site products by customers. Then you need to send them products after you get money in your paypal or respective place.
     
  4. AverageJoe

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    Thanks for the info guys. I really just wanted to know if I'd have to enter credit card numbers/other costumer info in addition to shipping etc.

    @ Fergal - I usually do check with Wikipedia first but when I'm looking for something really important I'm a bit cautious of them.
     
  5. Fergal

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    I share your caution, and usually double check anything I find on Wikipedia, I use it more as a guide than as a source of facts. I didn't mean to suggest that you should have checked with Wikipedia before posting your question, it was just that in this instance I felt that Wikipedia described it better than I could.
     
  6. ecommerce

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    A payment gateway is a combination of software and hardware that provides a secure interface to the bank card processing network. Payment gateways vary in functionality.

    Payment gateway’s typically support card present transactions for the retail environment and card not present transactions for the ecommerce environment. Some require a separate account for each environment and some bundle both card present and card not present into a single account.

    When signing up for a payment gateway you will also need a merchant account to accept payments. An Internet merchant account is a merchant account specifically designed to handle online payment processing of credit cards. The PayLeap payment gateway has the ability to bundle both your merchant account and payment gateway account which saves you time and money. This type of bundling is also extremely beneficial for support purposes. Rather than dealing with many companies you only need to work with a single company.

    Now that you are familiar with a payment gateway you need to determine your needs. Every merchant is different in terms of needs but below are some basic guidelines to follow when choosing your payment gateway.

    Does the payment gateway allow me to accept all types of transactions including retail, MOTO, mobile, and ecommerce?

    What transactions types can I accept? Are credit card, debit card, gift card, EBT card, and electronic check processing available?

    What countries does the payment gateway support?

    What type of fraud protection does the payment gateway offer? Is address verification, CVV security code verification, transaction threshold options, ip specific, and country blocking fraud protection available? Most importantly, are they PCI compliant?

    Does the payment gateway offer additional services such as subscription based transactions, secure customer information storage, and what fees are involved for these additional services?

    How is customer support? Try calling a payment gateways customer support line or sending an email. Were you on hold for a long time? Was the response to your email prompt? Do they offer high level support for developers?

    Compare costs! Many payment gateways show you the cost of their service but do not include the costs involved with the merchant account. Is there a setup fee? How much is the monthly payment gateway service fee? How much are the transaction fees including the merchant account fees? Will I be charged a cancellation fee? What fees are involved with additional services?

    If you are considering becoming an ecommerce merchant choose your payment gateway and merchant service provider before you choose your shopping cart or other ecommerce application so you do not have compatibility issues. If you are a retail merchant investigate the hardware available and costs involved before signing up for a payment gateway. If you plan on processing mobile transactions beware of application compatibility limitations. A secure mobile website will work on all mobile devices with internet capabilities.

    Once you have all of the technicalities out of the way the flow process is fairly simple. If you are a retail merchant the transaction is swiped, sent through the payment gateway to the card processing network for authorization which the payment gateway then sends the response back to your terminal.

    If you are a MOTO merchant the transaction is generally entered in the payment gateway merchant interface virtual terminal. Once submitted the transaction is sent through the payment gateway to the card processing network for authorization which the payment gateway handles and then sends the response back to your virtual terminal interface.

    If you are an ecommerce or mobile merchant the transaction is sent from your website, shopping cart, or application through the payment gateway to the card processing network for authorization which the payment gateway then sends the response back to your website, shopping cart, or application. Most shopping carts notify the merchant of a transaction being processed. There are many ways you can handle the response being sent back from the payment gateway.

    This whole process happens in about 3 seconds.

    There are certainly more topics that could be entertained here but this covers some of the basics.
     
  7. bbtl2009

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    #7 bbtl2009, Feb 17, 2010
    Last edited by a moderator: Feb 17, 2010
  8. AverageJoe

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    Thank you to everyone in this thread for your replies. I now have a much better idea of what to do.

    Sorry for the double post but ecommerce (the member) mentioned there being compatibility issues with payment gateways and shopping carts. How do I find out what is compatible with what?
     
  9. Fergal

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    AverageJoe, the best way might be to check the websites and ask the providers concerned. For example, if you look at this page on osCommerce, you will see that it contains download links for add on modules that make it compatible with various payment gateways.

    Perhaps ecommerce or another member with more experience of this area than me, will reply with more detailed info than what I can give you.
     
  10. AverageJoe

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    Lol. I had just found that page and was on my way to let everyone know but you beat me to the punch. At first I kept clicking the Partners links and I just wouldn't go to About Us section but then I finally realized that something there may help.
     
  11. nancy406

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  12. timpane

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    You'll be acquainted about the bought made to your location goods by customers. Then you require to drive them goods after you get cash in your pay pal or respective place.
     
  13. InterchangePlus

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    We use an online gateway payment solution that we can integrate to your website. The monthly cost for this is $10/month and there are NO set up charges.
    You can set it up to have the customer input the credit card information and do other things like recurring billing for a current customer. Also, you can accept payments for customers in other countries if you like.

    rdavidson(at)bettermerchantrates(dot)(com)
     
  14. deltahost

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    You forwarding customer to payment GW, customer pay, GW send you confirmation. That's all.
     
  15. SebastianBerm

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    Many payment gateways provide tools to automatically screen orders for fraud and calculate tax in real time prior to the authorization request being sent to the processor.
     
  16. sujeetets

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    payment get-way is a process by which you can sell and purchase any thing through the internet.
     
  17. ChrisDouthit

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    A merchant account is an account that allows businesses or individuals to accept payments by payment cards, typically debit or credit cards. The merchant account will transfer the funds from the buyer's card to your bank account. It is cheaper, faster, and the most efficient means to collect payments online.

    The payment gateways is the application between your order form and the merchant account that will authorize each payment. Your gateway will encrypt the credit card number to ensure that information passes securely and eliminates the possibility of fraud while adding additional security to the transaction process.
     
  18. elina

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    eCommerce websites are built differently, but they all use the same basic functions. The ability to accept credit cards is very important. The credit does not actually process through your website, for security reasons, but processes through a payment gateway. A payment gateway is a company that works with the credit card companies to be sure that all credit card transactions are processed securely. You must have an account with a payment gateway (we'll show you how to do this) accept credit card on your website. Although your transactions will process through a gateway, the viewer will never know or be directed away from your website. Your website will be guarded with 128-bit encryption, making fraud nearly impossible. When a purchase is made the money will be transferred directly into your businesses' bank account.


    Source : Nichesuite
     

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