| consumer, when you check out of your local | | | | They actually work in conjunction to get your profits |
| convenience store, you swipe your credit card through | | | | into your account; but they play separate roles in your |
| a point-of-sale device, and your gas, coffee, and donut | | | | online payment solution. |
| are paid. But what if you are the retailer and your | | | | Your payment gateway and your business bank |
| business is online? It’s not like you have a | | | | account aren't linked directly; your merchant account |
| card-swiping device at every customer’s PC | | | | services act, for the most part, as a liaison. When a |
| — there has to be a way for you to process | | | | customer orders a product from your online business, |
| that information. Essentially, that's the job a payment | | | | their card is processed via your payment gateway. |
| gateway does for online retailers. Roy Banks, | | | | The money is moved over to the merchant account |
| president of a leader in the payment gateway industry, | | | | service, who then transfers those newly captured |
| explains, "We basically function as the digital version of | | | | funds into your business bank account. |
| a hardware point-of-sale terminal.” | | | | 3 Tips for choosing a Payment Gateway: |
| What a Payment Gateway Does | | | | 1.Is it PCI-compliant? That means that the |
| They allow online merchants, like eStore owners and | | | | company’s security has been audited by a third |
| auction sellers, to accept credit card payments over | | | | party and found to be up to industry standards. Since |
| the Internet by taking steps to ensure the transactions | | | | payment gateways store all your customers’ |
| are legitimate: | | | | credit card information (sparing you the stress), it also |
| 1.They authorize the cardholder’s credit | | | | means you can sleep better at night, knowing your |
| — that is, they check to ensure that the | | | | customers’ valuable info is safe and sound. |
| customer has enough money on their credit card to | | | | 2.Good customer support. ‘Nuff said. |
| cover the charges. | | | | 3. Lastly, it's important that the payment gateway you |
| 2.They place a hold on that amount, so the buyer | | | | choose be integrated to the third-party solutions you're |
| can’t turn around and spend that same money | | | | planning to use. You want your storefront platforms |
| elsewhere before it gets transferred to the | | | | and shopping carts to be compatible with your |
| retailer’s merchant account. | | | | gateway. |
| Says Banks, "A payment gateway is just the | | | | Payment gateways not only allow you to collect the |
| technology necessary to consummate a payment | | | | monies from your sales, many also offer an array of |
| transaction.” | | | | security features, to help you avoid becoming a victim |
| A Payment Gateway's Role in Your Total Payment | | | | of fraudulent orders. In the end, they make your |
| Solution | | | | eCommerce business a less-stressful, more pleasant |
| Many people confuse payment gateways with | | | | experience — for both you and your customers. |
| merchant accounts, but they're two different things. | | | | |