After all, they are convenient, prompt and do not require bulk sms customers to wait in long queues to make their payments for a specific service or product. When dealing with payment gateway providers, however, you need to be careful and pick the one that understands your needs and offers solutions that provide the best financing savings and time.

Understand the various types of payment gateways that existUsually, there are two types of payment gateways. One is the integrated payment gateway and the other is the hosted payment gateway. While the integrated payment gateway connects your eCommerce store to the gateway services via an API, a hosted payment gateway redirects the customer to the platform of the payment service provider to put in the payment information.

Know the various steps in a payment gateway transactionA majority of payment gateways perform the following steps in a few seconds. The first is encryption. Here, the payment gateway encrypts data that can only be sued by the buyer and seller between the user’s browser and the retailer’s server. Then comes the authorization request, where the process obtains an approval from the financial institution to move ahead with the transaction. Lastly, the payment processor obtains the authorization to carry on with the next action.

Understand the limitations the platform comes withWhen you are checking out various payment gateway providers along with the steps involved in processing a payment, you also need to get acquainted with any kind of drawbacks that exist. For instance: