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Payment gateways are a great solution for businesses that are looking to accept credit card payments online. It is important to reassure your clients that their financial numbers are not going to be abused, but if these numbers stored on a computer, they may be vulnerable to hacker attack. The solution? Use a reputable payment gateway company.

 

What is a Payment Gateway?

 

Payment gateways provide a method to verify credit cards in real time by sending information directly to the bank. No is information stored anywhere as it is simply transferred. If the card was not reported stolen or wanted for fraud, then the transaction will be made.

 

There are advantages to using this technology. For one, no stored credit information ensures that the client's payments are secure, a fact that a business can promote when encouraging sales. A lot of people are wary of paying online and the assurance of secure processing tends to help them make the decision to buy.

 

Another advantage of payment gateways is the reduction in the number of stolen or fraudulent card numbers being used. This protects the business from losing money. While it is impossible to eliminate the use of invalid card numbers completely, using a payment gateway system will help keep the problems to a minimum.

 

How to Choose a Payment Gateway Service

 

Not all the companies are the same. While all process the information in a similar manner, online businesses need to ensure that they are choosing the right payment gateway company for their needs. It's a good idea to check with several payment gateway services and read reviews, if possible, so you can get an idea of what each one has to offer.

 

One of the most important aspects to keep in mind when choosing a payment gateway is the shopping carts it can support. Most starter companies can set up a shopping cart that can be integrated with the payment service of their choice. If the business already has an established shopping cart with their products set up they will have to find a payment gateway compatibel with the current shopping cart.

 

It’s also important to check the payment gateway’s rates. Some charge a fixed rate per transaction while others charge a percentage of the transaction. Compare prices to ensure your business is getting the best deal for the number and type of payments you’ll be receiving. For example, if the majority of a business' products are under R10, a fixed fee of R1 per transaction will be more than a percentage of 2.5% per transaction. But, if the majority of the sales are over R50, the fixed fee will be far more economical.

 

Payment gateway companies are not required in order to do business online, but they do make things simpler, safer and easier. Choosing the right one is very important, since it can affect the future of your business and the safety of your clients' information.

 

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