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Online shopping has become more common as Internet security improved and more customers have access to a broadband connection. Payment gateways evolved from the need for greater security for online shopping and lots of merchants are turning to these third parties to help manage the financial side of their online shopping sites. Payment gateways are simple, fast and secure ways to help clients pay for their purchases online.

Payment gateways are electronic commerce interfaces that provide a secure way to transmit information between customers, merchants and their banks. The service is usually offered by a third party company that acts as the liaison. After the client’s information has been submitted on the online shopping site, the payment gateway encrypts it and it is sent to the bank. The bank verifies the credit card information before encrypting the data again and sending back the approval. This information is then stored by the merchant that can send a batch of transactions to their bank at the end of the business day.

PayPal is one of the largest payment gateways on the Internet but their services do not, as yet, extend into South Africa. There are many other payment gateway services available, but amongst the good there are always the bad so you need to be alert when choosing a payment gateway for your online store.

The first consideration when considering a payment gateway is to make sure that it has been accredited by the Payment Card Industry (PCI) and that it is up to standard. Services that are not accredited should preferably be avoided at all costs to ensure the safety of you and your client’s finances and personal details. Another important consideration is the level of customer support offered by the payment gateway as both you and you clients may need assistance in using the service or support if something goes wrong.

It is also important to make sure that the payment gateway is compatible and can integrate with your site’s shopping cart and your bank. Often the programmers of your site’s shopping cart will suggest a number of payment gateways that their software is compatible with. Banks will also offer a number of gateways that they are happy working with.

Payment gateways are a service offered by one company to another so chances are that you will have to pay something for the services offered. It is important that you know how a payment gateway service provide expects to be paid. Some simply require a monthly fee for their services while others will charge a percentage of every transaction that they perform.

Payment gateways have become an indelible part of online shopping. It adds an extra layer of security and ensures that clients do not have to worry about sending their credit card details over the Internet. No online shopping site should be without a payment gateway that is fast, secure and reliable.

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