The following are 5 important roles of payment gateways in electronic commerce.
Payment gateways act as an intermediary, connecting buyers, payment gateway for ecommerce sellers and banks so that online transactions can take place.
Ensure the process is seamless
When a customer enters their leasing portal debit/credit card information, the payment gateway verifies the card information to ensure there is no redundancy before approval. This is a great way to prevent fraudulent activity.
Ensure transaction quality
The payment gateway assumes that the payment information entered by the customer is valid, that the issuing bank authorized the transaction, and that the receiving bank sent the correct amount to your merchant account.
The payment gateway ensures that the seller receives the correct amount at the correct time.
Ensure transaction security
It encrypts sensitive information, uses the HTTPS protocol as a secure way to communicate data, and complies with security education standards such as the Payment Card Data Network Security Management Standard.
Payment portals make it easier for buyers and sellers to conduct transactions from the other side of the world. It can reduce, if not eliminate, security risks and the need for manual intervention.