What is a Payment Gateway and how does it work?

What is a Payment Gateway and how does it work? Boost your sales with a payment gateway. In this article, you will learn what it is and how it works, quickly and easily. Ahead!

The payment gateway is a complete solution for electronic businesses that seek to boost their business with safer, faster, and simpler payment methods.

What is a Payment Gateway and how does it work
What is a Payment Gateway and how does it work?

It is likely that at some point you have experienced the process of buying from a website as a customer. Today, now that you are the owner of an e-commerce, you seek to give the best experience to your customers.

You know well that a happy and satisfied customer can return to future visits and purchases, giving your business a significant positive impact, especially if you are recommended by traditional word of mouth or through social networks.

Beyond finding easy navigation in an online store, having a nice design that does not create confusion when buying, and having a fairly efficient search bar available, we must always look at one of the most important factors: the gateway of Payments.

Your e-commerce must be a safe space, with everything mentioned above and other accessories that help your customers make the purchase decision and complete the action. Therefore, it is important that the online payment gateway works well in every way.

Payment gateway What is it?

What is a Payment Gateway and how does it work? We define the payment gateway as the route that an electronic store has so that users can have facilities when paying for a product or service.

It will depend a lot on the payment gateway you use in your online store to generate a better or worse experience when paying online.

When you own an e-commerce, your main objective is to enable your customers to browse, consult and buy quickly, safely, and easily.

It is clear that in order to close the last stage of the sales funnel, it is important to get the payment gateway to work properly. It is not much use offering an excellent web design and offering exclusive promotions if everything is complicated at the time of finalizing a purchase.

Prevent your electronic store from having the problems that others currently have. Having a good gateway that does not affect the sales funnel is essential to make your business grow.

How does a payment gateway work?

The moment a user accesses an electronic store and adds products to their shopping bag to pay online, they will enter the payment gateway.

In this tour, the user uses a debit or credit card number and enters their personal data in different fields that the platform may request according to its policies.

During this action, the browser such as Google Chrome, for example, is responsible for encrypting the information and sending it to the electronic store where the user purchased. Encryption provides layers of protection from third parties so that they reach their destination safely. Normally, to do this, the web domain must have an SSL (Secure Socket Layer) certificate.

Starting from this point, the payment platform contacts the seller’s bank platform, giving it all the details regarding the customer’s card.

The bank responds by forwarding the data to the client’s bank platform; This is how it is verified that the information is true and makes the approval.

The final step is to verify the data by the customer’s bank and send the permission to the seller’s bank with a message similar to “approved”. Otherwise, if not approved, you also get a message similar to “payment problems” or “insufficient funds”.

Although the operation can be a bit complex at a technical level, you just have to understand that the platforms have a “communication” between banks, making the payment or operation be approved or rejected.

Examples of payment gateways

1. Niubiz Scheduled Payment

This solution for e-commerce offers the possibility of receiving payments in a timely manner without complications, protecting your customers’ data and giving them the security they need thanks to the PCI DSS certificate offered by Niubiz’s Scheduled Payment.

Like the rest of the payment gateways, this alternative will help you charge your customers with Visa cards periodically and automatically.

Learn more about the Niubiz Scheduled Payment product by clicking here.

Also Read:- Jobseeker Payment

2. Niubiz Link Payment

With Pago Link, it is possible to receive payments for sales made in your business without problems. Its function is simple: the buyer can safely enter the link and make the payment without further ado. This product developed by Niubiz is an easy way to manage sales through the internet and social networks without the need for a website.

Generating a payment link is very easy, it is only necessary to download the Vendemás APP, join and wait 24 useful hours for activation.

Learn more about the benefits of Pago Link by clicking here.

3. PayPal

Obviously, the brand does not require an introduction. Over the years, it has been key in positioning itself as a reliable and secure payment gateway. It has a presence in many parts of the world and, in general, is a benchmark in the sector.

Its advantages lie in handling the main credit and debit cards. However, interest rates can be a factor that in recent years has been affecting more than one entrepreneur, especially if they are self-employed.

4. AmazonPay

It was born in the year of 2007 and has millions of users from all over the world. Its payment gateway is similar to what PayPal offers, with fast solutions for e-commerce that work with Magento, Woocommerce, Prestashop, or Shopify.

This gateway is easy to integrate and users do not need to leave a website to complete the purchase. However, it can be a bit expensive to integrate compared to other platforms.

5. Web Payment – Niubiz

Web Payment is relatively new, but one of the most powerful products that Niubiz has developed. It is a complete payment gateway integration that is easy and fast to use.

Its main features are that it accepts all cards equally, as well as having a friendly and intuitive payment gateway with which it is possible to sell in online stores 24 hours a day no matter where you are.

In addition, it offers real-time monitoring with graphs and visual reports from the same platform to keep a correct record. Do you want to boost your sales with an online payment gateway?

Also Read:- AD&D Insurance – Accidental Death And Dismemberment Insurance

What is a payment gateway and how to use it in my Tiendanube?

Payment gateways are platforms that allow a money transaction between 2 people over the Internet. They are the simplest and fastest way to collect your online sales.

The good thing about payment gateways is that they simplify the entire payment process for both the person who buys and for you. The buyer will have multiple ways to pay for the purchase (cash, card, installments, deposit, or bank transfer) and the payment gateway will notify you when you receive the money. In addition, the payment gateways guarantee the security of your transactions.

Steps to using a payment gateway

  •  1. Enter the gateway site and create an account, for example, Mercado Pago or PayU Latam. Some of them ask for documentation before opening an account.
  • 2. Integrate the account with your online store in the Tiendanube Administrator. The process varies depending on the gateway you want to activate.
  • 3. When a customer pays for an order, the gateway will send an email confirming that the payment was successfully processed and the status of the order will be updated in your Store Manager.
  • 4. The money collected will remain in the corresponding account, depending on the gateway you are using.

You can transfer this money to your bank account from the gateway administration panel or, in some cases, you can use the money to make purchases and payments directly from your virtual account on the gateway. In some, you will have to wait a few days until you can withdraw or use the money.

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