Once you come up with an app idea, you need to set up a payment gateway for online purchases, especially when using eCommerce and websites. There is a plethora of online payment gateways, which may place you in a dilemma. That is why in this blog post, we have listed shining examples in the Canada payment gateway system. As a business owner, you do not need to know all the ins and outs of a payment processing system, but it is important to know what is happening so that you can deal with trouble, if it comes. Moreover, users’ financial information, such as their credit card numbers is very sensitive, so be quite cautious while managing the data on users’ accounts. Stay with Twelfthdream in this article to find out more about this subject.
What is a payment gateway?
A payment gateway is a way of connecting customers and an acquirer’s payment data. Payment processors have paved the way for building a solid relationship between buyers’ and sellers’ credit cards in order to exchange transaction data. If a card’s information is accurate and has the right amount of cash on hand, then the financial transaction is accepted. The big question though, is why do we need a payment gateway?
Swiping a credit card on a Point Of Sell (POS) terminal, is a normal thing to do when going shopping in person. The system validates the card information and takes the cash necessary. But in online stores, all you need to do is enter the credit cards’ information on the payment page. The payment gateway uses its particular encryption technology and verifies whether the customers are using their cards or not to avoid fraud. To clarify, implementing and maintaining a gateway is a straightforward task to do on a website.
How does it work?
Collection: When customers go to the checkout page to enter their credit or debit card information, the payment gateway will either present them with a payment page or securely transfer the information to IT.
Transfer: It then continues by transferring the customers’ credit card information and the details about the transaction.
Authorization: If both steps above are completed, you and your customer will be notified whether or not the transaction has been accepted.
The 3 types of payment gateways
Hosted payment gateways
Hosted payment gateways direct customers away from the checkout page. The customer is redirected to the PSP page after clicking the gateway link. The buyer then fills out the payment information. They are redirected to complete the check-out process once the payment has been completed. A well-known example of a hosted payment gateway is PayPal, a popular eCommerce platform.
Self-hosted payment gateways
Customers’ payment information is collected directly on the merchant’s website in this type of gateway. Afterwards, the data is sent in hash key or secret key format to the payment gateway’s URL. The check-out process for the self-hosted payment gateway system is quick. In addition, the user experience makes the process simple for customers to complete.
API-hosted payment gateways
Customers enter their credit card information directly on the merchant check-out page, using an API.
Canadas top payment processors
Moneris is a giant payment processor in Canada, with almost 3 billion annual financial transactions. Previously known as Moneris Solutions, the company was founded on December 2000 in Toronto. Moneris is well-suited to businesses of all scopes. It is a forerunner in the adoption of the EMV chip and the PIN technology. The company has partnered with BMO, RBC, and Sage accounting, since it ensures accountability and provide services in a secure environment. When it comes to accessibility, Moneris offers 24 hour support every day, however, it is a little bit weak in customer service interaction.
On the flip side, Moneris’ POS software and hardware, only work together, which is a limit. Despite the fact that it provides a variety of services, technical difficulties have plagued Moneris. Furthermore, the yearly subscription fee is $250, which is a bit pricey.
Elavon is a payment processing system founded in 1991 in Atlanta, USA. The company ranked as the USA’s number 1 merchant account provider, in more than thirty countries. Elavon offers an array of products and services, such as payment optimization, security and PCI compliance, and payments in person, with multiple pricing plans starting from a monthly fee of 10 dollars. It accepts credit cards and currencies from all over the world. Elavon’s website has fruitful articles to help startups all sizes with payment processing integration from A to Z.
PayPal, based in San Jose, California, was launched in 1998 and has since dominated the payment processing industry. Because it makes virtual financial transactions with credit cards simple and convenient, small businesses prefer to use PayPal as their preferred payment gateway system. Most importantly, PayPal is a safe and secure payment method with a low risk of fraud. In Canada, PayPal has over 6 million users, so if you have any issues, you can fix them with minimal effort thanks to the community. Papal uses social media platforms such as Twitter and Facebook to share excellent customer service.
How to choose a payment gateway for a business?
When choosing a payment gateway to act as a middleman between you and your customers, keep the following factors in mind:
- Scam and fraud: Online fraud is a common term in the Internet era. That is to say, credit card fraud accounts for 40% of all financial crimes. Tokenization is a cutting-edge technology that encrypts credit card data and replaces it with a new token that cannot be decoded.
- PCI compliance: PCI is a tool that lets the payment gateway system understand the source of the credit card information to elevate the security level. It is usually accomplished by filling out a self-assessment questionnaire.
- Quality of customer service: Customers are the most invaluable assets in all kinds of business. Therefore, they should be behaved in a responsible way, 24/7.
- Adaptability: It’s critical that your payment processor is compatible with the eCommerce software you’re currently using, to avoid problems.
To wrap up
Running a successful eCommerce website or a mobile app is a daunting task. You should have an eye for detail to reach the maximum audience. You can seek professional assistance at this time. Twelfthdream is a mobile app development company in Vancouver. We focus on the needs of our clients. Twelfth Dream Team As A Service (TAAS) resolutely builds an eminent IT solution for you. We develop outstanding Android and iOS apps by choosing the right payment gateway partner that matches your business’ size. Feel free to ask any questions in the comment section below. We will respond ASAP.
Frequently Asked Questions
What is POS? Point Of Sale (POS for short) is a system in which businesses manage customers’ transactions. So, when buyers buy products online or offline, owners can follow and take advantage of the information via POS.
Does PayPal support all currencies? Not all. But the platform gives services in 26 countries excluded Antarctica, Afghanistan, Cuba, Haiti, Heard Island And McDonald Islands, Iran, Iraq, North Korea, Lao, Lebanon, Liberia, Libya, Pakistan, Serbia and Montenegro, Sudan, and more.
What does PSP stand for? Payment Service provider.