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Writer's pictureRam Sekhar Repaka

Payment Gateway Integration: All You Need to Know



Introduction


An #eCommerce website should provide a number of payment options for the desired goods. The availability of preferred payment methods can occasionally become a significant component in making a purchase decision for your already sophisticated audience. This article describes how to include a payment gateway into an eCommerce website.


What is a Payment Gateway?


Payment gateways in physical stores are point of sale (#POS) devices that receive credit card information through a card or #smartphone. An online payment gateway uses technology to manage electronic payment methods. It serves the same purpose as a physical point-of-sale (#POS) device in that it authorizes a customer transaction.


Payment Gateway vs. Payment Processor


Do you understand the distinction between a payment gateway and a payment processor? The #paymentgateway is responsible for gathering card information from the customer and sending it to the payment processor. It takes place at the beginning of the transaction cycle and its end.


The #paymentprocessor securely transfers information and pertinent buyer data from the purchaser's bank to the merchant's bank and back again.


When the transaction is completed, the payment gateway shares its results with

a buyer: approval or rejection statuses.



Payment Gateway Integration Methods


Payment gateway integration with an #eCommerce site can be accomplished in four ways: hosted, self-hosted, #API or non-hosted methods, and local bank integration.


  1. Hosted Payment Gateways - A hosted solution for processing the fee from the buyer to the merchant directs the consumer to an externally hosted payment page (that still belongs to the gateway). A buyer returns to the web store as soon as the confirmation is received. The checkout is then completed. PayPal, Stripe, and AmazonPay are popular examples of such solutions.

  2. APIs or Non-Hosted Payment Gateways - A non-hosted payment gateway enables payment completion directly on a #ecommerce site using #APIs (Application Programming Interface). Using this connectivity approach, merchants may easily manage the checkout page's interface from start to finish. For many firms, this is the most flexible and convenient method of integration.

  3. Self-hosted Gateways - If you want complete control over all of your clients' payments, this option is definitely the best fit. The self-hosted integration method allows for all transactions to be accommodated on a website before being transferred to the gateway via end-to-end encryption. QuickBooks Commerce's B2B Payments or Shopify Payments powered by Stripe are two examples.

  4. Local Bank Integration - This form of integration allows vendors to transfer funds locally to the buyer's bank. Following payment, the buyer is directed to a landing page indicating a successful money transfer.


How To Integrate a Payment Gateway for eCommerce?


When contemplating hosted solutions, you could look into ready-to-use plugins on the market. Such gateway providers cover the fundamentals. Typically, it is simply a piece of code to be added to your site, along with the addition of a new payment option to your list.


Here are a few examples:



Conclusion


Using an inappropriate or ineffective payment system may turn off your customers. Consider what your competitors are using and how effective they are. In terms of integration methods, if you have a small business, it would be best to use a third-party system. However, for more major market players, a customized version is recommended.


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