Now a day’s all E-commerce businesses are working best with the help of easy online shopping methods. Though which they can get the benefit of fast page loading and easy productivity.
Key Points:
- What is Payment Gateway and how it works?
- Best payment gateways List for ecommerce stores and its details.
- Payment gateway integration method-> hosted payment pages, mobile payment integration, and payment gateway plugins.
- Custom payment integration services are best-fit for businesses with complex payment processing flows, such as marketplaces, large enterprises, or companies with specialized domains.
What is a Payment Gateway?
A payment gateway is a platform which authorizes payment for online merchants. Its consumer-facing interface used to collect payments.
How Payment Gateway works:
The gateway is not directly involved in the money flow. It is a web server to which a merchant’s website or POS system is connected. A payment gateway often connects several acquiring banks and payment methods under one system
- On the checkout page. Once customer ready to pay for the items in cart at that time they need to enter Payment information card details and etc.…
- The Payment Gateway service receives customer’s information and encrypts it.
- After the encryption it sends information to the financial institutions though payment processor which then authorize the transaction.
- After the verification of the, the institution sends a response to the payment processor with the help of the credit card network.
- Once the payment processor get the response back then it connects to the payment gateway service on the merchant’s side. If the transaction is successful, they confirmed the customer’s order and processed to fulfillment.
- After successful transaction Payment Processor transfers the money to the merchant’s account which will take some days.
General steps to integrate Payment within API or Application?
In General the APIs enables easy integration of applications though which makes digital payment process becomes enjoyable and smoothly. A Payment gateway API integrates with existing digital processes to connect checkout system to payment network.
Mainly all Payment gateway have these FOUR types of Integration method.
| Payment Gateway Types | Description | How it Works | Pricing | Security |
|---|---|---|---|---|
| Hosted Payment Gateway | Hosted Payment Gateway redirects the customer to Payment Page. All transaction payment securely handle off of website. | 1. Customer at checkout page click on Pay button. 2. They will redirect to Secure Payment Page of Payment Gateway Provider. 3. Payment information enter by the customer and payment get process after authenticated. 4. At last customer redirect to the site with the Status. | Charges are based on per transaction. | This provide High level of security as gateway provider is strongly secure. |
| Self Hosted | Within Self Hosted Customer need to entered payment details directly on the website. These details are then encrypted and submitted to the third-party payment gateway for authorization. | 1. Customer enter the payment details directly within website. 2. Details are securely encrypted on checkout page and then send the data to payment provider for authorization. 3. Payment gateway then verify the details and payment process. 4. Customer will receive confirmation of success or reject. | This will need high initial setup cost. Expenses include software cost and other security charges. | This need security setup at own business side. Need to send secure and encrypted data that can be verify by the provider. |
| API Hosted | In this API hosted method, Customer can handle Payment detail and payment processing both the thing within their website only using API (Application Programing Interface). No any redirect or passing data to outside. | 1. Customer enter the payment detail and complete the payment within website. 2. Website will send securely data to payment gateway though the API call. 3. The API will verified the data encrypted it and sent to payment provider. 4. API will process the payment and send response back to the customer. | It is cost effective. Cost can be based on per transaction or monthly. | In this security is sharable. Data need to be secure by Website and payment gateway provides the secure endpoint though API. |
| Local Bank Integration | In this type of method payment gateway directly connect with the bank. | 1. Within checkout process, redirect happen to Bank’s Payment page. 2. Customer need to enter their bank login credentials for authentication. 3. Payment gateway securely communicate with back and process the payment. 4. At last customer redirect to the site with the Status. | Cost include setup fees, monthly service charges and transaction fees. | This also provide high level security like Hosted Gateway by providing robust security through the local banking partner. |
Best available list of Payment Gateway for the payment sites.
| Payment Gateways | Integration Type | Description |
|---|---|---|
| PayPal | Hosted | PayPal is most used and widely recognized payment gateway, it offers easy integration method, support all kind of currencies and provides best protection. |
| Stripe | Integrated | Stripe mainly used to support online payments and handles whole payment services from subscriptions to complex payment. It provides user-friendly interface and untestable documentation. |
| Square | Integrated | Square having multiple range of payment solutions for ecommerce website include API, In Person Payment and direct point of sale systems. |
| Authorize.Net | Integrated | Authorize.Net is one of the best and most used a secure payment gateway it supports easy, safe, and affordable credit card and eCheck processing. |
| 2Checkout | Hosted | 2Checkout (now Verifone) is a global payment gateway service which includes multiple payment methods like credit/debit cards and alternative payment options. |
| Worldpay | Integrated | Worldpay also offers a wide range of payment processing solutions for e-commerce website which includes online payments, in-store payments, and Omni channel payment integration. |
| Braintree | Integrated | Braintree is owned by PayPal, Braintree offers a payment SDK with support for credit/debit cards, PayPal, and other digital wallets. |
| Adyen | Integrated | Adyen is a global payment company which provides platform for accepting payments across online, mobile, and in-store channels. |
| Amazon Pay | Hosted | Amazon Pay is a payment gateway integration provided by Amazon, this allow customer to use existing Amazon account to make purchase on any website and applications. |
| Shopify Payments | Integrated | Shopify Payments method is a built-in payment gateway which Shopify users can use. Shopify provides built-in fraud detection tools, PCI compliance, and secure payment processing infrastructure. |
All the Payment Gateway are best on its place and all payment are having different level of Security, Cost, integration technic, support and business needs. So we need to choose best Payment gateway based on our need.
There are some points we need to consider while choosing the Payment Gateway for our business.
We Need to define our business model our targeting customer and determine the types of payments we will accept.
- We need to list out our features and also fix our priority based on the transaction fees, setup costs, and contract terms.
- While choosing payment gateway we need to check its compatibility without business website.
- We should also think regarding the best security.
- We must test the functionality and performance and how reliable the Payment Gateway is?
- We need to choose the payment gateway that can be easily scalable with our growing business.
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