E-commerce Payment Gateway Integration is a software application which helps in online transaction between the seller and buyer where the buyer makes payment through online payment facilities. This service is not restricted only for E-commerce shopping applications but also for many other websites which provides various services online and allows the customers to pay online for their work. Even the NGO and other organizations use this software application for collection of donations or funds. Many platform are available to support E-commerce payment gateway to name few; Authorize.net, Google pay, Stripe, PayPal, Paytm and direct MasterCard/Visa payments.
Regardless of the work, business or services offered by the merchant E-Commerce website should offer online payments modes to the customers to develop their business in smoother manner without disturbing the customer’s preferences. The seller should add some payment gateways to their website to increase the sales by allowing the customer to pay directly to the merchant through their convenient mode or location.
Major options in payment gateways
There are different options in payment methods, integrated and hosted payment gateways are the two major options which can be selected for the easy payments.
Integrated Payment Gateway
The web owners use integrated options for the payments directly made by the buyers. In this they allow the customers to get connected to them through the API they provide for their E-Commerce website. The customers can directly make the payments on the website or the application for every purchase they make in the particular website without selecting any other platform for making the payment.
In this kind of payment the merchant or the web owner will be more responsible towards the security of the data provided by the customers on their website. The web owners will need experts to handle the programming for better development of website.
Hosted Payment Gateways
In this payment method the customer will directed outside the website for the payment through other online payment applications. In this the customer will have to pay outside the website for the products and services offered, the payment has to be done through various payment applications like PayPal, Paytm or Google pay. This will help the merchant or the web owner to feel stress-free without worrying about the sensitive data provided by the customers on their website.
In other hand not all customers will be comfortable with such options as it might take longer time or make them feel distracted. In most cases the customers will not trust the third parties if they are not aware of the platforms or if they are not interested in the services provided by the third parties. It will also lower the conversion rate; therefore most of the e-stores do not prefer this type of integration method.
How E-commerce Payment Gateway Integration works
Payment Via phone and website
As E-commerce Payment Gateway Integration is all about the transaction happening online, here the customers pay the merchant, seller or the dealer online through mobile applications or websites. The customer or the buyer selects the products or the services, then he/she makes the checkout by making payments through online payment apps or through the website itself. The website will provide different mode of payments which will include credit and debit card payments, transactions through net banking and other E-commerce supportive payment gateway.
The payment details received by the seller
The payment details and the mode which the customer has paid will be sent to the seller or the merchant through payment gateway. The personal and sensitive data registered by the customer will be securely saved and it will be protected by the authorized websites.
Merchant account process payment details
All the details regarding the product or service purchased will be registered in the seller’s record to send updates regarding the payment or to refund the amount to the customers in the case of return request or unsatisfactory service offered. This happens only when the seller provides such option to the buyer during the time of purchase. This information is also recorded to update the growth of the business and for maintaining financial records for the governmental purpose.
Notification regarding the payment
The customer will receive a notification through SMS or mail regarding the payment; whether it was successful or declined. This message will be received by the customer from the bank or online payment app or from the website through the merchant made the payment. This notification is sent to the customer to indicate them about the payment they have made for a product or a service.
The amount collected by the merchant
Finally the merchant will receive the payment through online payment service or through bank accounts. The processing fee will deducted while sending the amount to the service provider or the merchant.
With growing technology the people tend to use online platforms for every other need, from buying to selling all the activities happens online. The online payment methods are also growing tremendously as not everyone will be interested to spend time and energy to make payments in person. It is also believed to be safe at some occasions as the bank maintains the record of the transactions done. In some cases it has also proven to be dangerous as most of the unauthorized websites fails to maintain the sensitive data provided by the customers or they misuse it for theit own benefit. So, choosing the right website and making the payment with complete transaction details is necessary.