Integrating a Payment Gateway into Your Website – A Guide

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Customers are the life and blood of businesses. No matter what you sell, your customers need a few common things: security, quality, and safe payment options. You might be surprised to know that 18% of the customers abandon their cart because they don’t trust the website with their credit card information, and 9% because of a lack of payment options.

Which is why, payment integration in a website is crucial to your business. Therefore, it is necessary to choose a payment gateway that helps you retain your customers by avoiding the above-listed problems. Your payment gateway should both satisfy your and your customers’ needs. Now, before you dive into how to add payment gateway to a website, find out what a gateway is.

What is a payment gateway?

A payment gateway allows authorisation and processing of payments by transferring data. With the world going digital, payment gateways have become a part of almost all online and offline stores. One of the reasons why they are so popular is that they ensure the safety and security of data while ensuring speedy transactions. A website with a payment gateway typically has a higher chance of sales and profits.

How does it work?

Just like a point-of-sales terminal, a payment gateway ensures quick and smooth transactions. To ensure the safety of the data processed and transferred, payment gateway providers use encryption and security protocols.

A payment gateway follows these steps:

1. The customer clicks on the “pay now” button during checkout.
2. They select the payment method and enter the required card details.
3. The details added are shared with the payment gateway.
4. The payment gateway encrypts the data and shares the details with the payment processor.
5. The bank gets the authorisation request and responds to the payment processor with approval or rejection.
6. The merchant bank receives money from the customer’s bank.
7. The website displays the confirmation/rejection accordingly.

Types of payment gateways

There are two types of payment gateways for a website.

· Hosted

Hosted payment gateways involve redirecting your customers to the website with payment gateway for the payment process. It is a third party where customers complete payment and are redirected back to your website. This type of gateway does not require PCI compliance and the customer data is stored by the vendor. Since they require you to redirect your customers, this type doesn’t help in promoting your business. It is considered best for small businesses, which do not receive high traffic as well.

· Integrated

These types of payment gateways are also called non-hosted payment gateways. Integrated payment gateways help your customer to stay on your website and pay from there only. The best part of these gateways is that you can customise them to match your brand and promote your business. Customers also get a smooth payment process since they are not redirected anywhere. However, since they are integrated into your website, you need to obtain PCI DSS compliance, and the payment gateway integration requires a development team.

Transaction types

One of the reasons why payment gateways are so popular is that they support a variety of transactions. Some of them are:

· Payment/sale

Immediate payment happens under this transaction. It is a combination of authorisation and capture transactions that helps you fulfil instant orders and payments.

· Authorisation

Authorisation is used to check whether the customer can pay the requested amount or not. Funds are not transferred in this transaction, but the availability of funds for future payment is verified. This type of transaction takes a while to complete.

· Capture

This type of transaction allows you to capture the authorised money for settlement. When it takes time for you to ship the product, the payment is first authorised and then captured once the product is shipped.

· Refund

When the customer cancels an order for some reason, the refund transaction is initiated. It happens only for sales and capture transactions.

· Void

This happens between the authorisation and capture transactions. Void transactions are cheaper than refunds and can happen when a payment has been authorised but not captured by the merchant.

Integrating a payment gateway into your website

Before you make a payment gateway integration into your website, you should understand the working and benefits of payment gateways. There are a lot of gateways available in the market. Explore your options and check which ones are compatible with your website.

The steps of integrating a payment gateway into your website will depend on your business needs, the customisation required, and the payment gateway you have chosen. However, the general flow of the steps remains the same.

· For hosted gateways

Hosted gateways are available on the provider’s website. All you need to do is add a payment button on your website and the connection is made through API. Hosted gateways are highly secure and can be easily integrated.

· For non-hosted gateways

Non-hosted gateways require a little more effort to integrate. Since you need to add it to your server, you need a technical team to handle the integration. This method also uses APIs to make the connection with your server.

· Direct post methods

This method ensures you don’t need to get PCI DSS compliance since the data doesn’t get stored on your servers. A vendor can easily set up an API connection between your website and the payment gateway.

Some things to keep in mind while integrating:

• If you choose a hosted payment gateway, you will require an SSL certificate, merchant’s ID, MWS access key, and secret key.
• If you choose an integrated gateway, pay special attention to security and safety measures. You might also require PCI DSS compliance.

Benefits of payment gateways

A payment gateway has several benefits that make them perfect for your website. Some of them include:

• Quick transactions: Payments through payment gateways take mere seconds to process.
• Security: A secure payment method is a key to customer loyalty. Payment gateways use several security protocols and encryption to ensure a safe and secure transaction.
• Wider reach: Due to their availability in all corners of the world, payment gateways increase your customer base and sales.
• Costs: Apart from the initial set-up cost, most payment gateways charge an affordable transaction and chargeback fee.
• Saves time: Since the payment takes only seconds to process, payment gateways save both your and your customers’ time.
• Improves customer experience: A smooth payment process and availability of multiple payment options offer a superior customer experience and enhance customer loyalty.
• Promotes business: This happens in case of a non-hosted payment gateway that allows you to customise it as per your requirements.
• Availability: Your customers can pay anytime and from anywhere in the world using a payment gateway.

Choosing a payment gateway provider

Consider the following factors while choosing a payment gateway provider:

· Pricing

Pricing is one of the most important factors when it comes to choosing a payment gateway provider. All providers typically charge setup fees, monthly fees, merchant account setup fees, and transaction fees. Read the pricing requirements cautiously and check if there are any hidden costs. Choose an affordable payment gateway that also ensures long-term quality.

· Ease of integration

After pricing, it is crucial to check the process of payment integration in website. A simple and inexpensive integration process should be the preference. However, that also depends on the type of gateway you choose. Hosted gateways have a simpler integration process than non-hosted ones.

· Settlement

Check the settlement cycle your gateway offers. A quick settlement cycle is crucial for the smooth functioning of your business. Choose a payment gateway provider that suits your needs the best.

· Number of payment methods

A gateway that offers the maximum payment methods is the most preferable one. More options will ensure that you can reach a wider customer base and reduce the cart abandonment rate.

Begin by listing your requirements before choosing a payment gateway. Consider and compare different options and check their suitability for your business. A gateway is a crucial part of the website and your business. Integrating one into your website is not a lengthy process. Keep the above-listed things in mind before integration.

Or, to be on the safe side, simply choose PayTabs as your payment gateway provider as it comes with excellent customer support and avant-garde technologies to quickly and conveniently integrate into your website or e-store.