What is the role of payment gateways in e-commerce? Learn quickly

By Ailsa - Mar 16,2023

The following are 5 important roles of payment gateways in electronic commerce.

Reducing distance

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.

Less hassle

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.

How is money transferred in e-commerce?

Electronic Payment Methods Prepaid cards are used by customers to use prepaid cards for a specific amount by entering unique card numbers on retailer websites, credit cards are used to verify users, and electronic cash are examples of e-payment types.

Which payment method is employed in online shopping?

Credit cards are frequently used for online purchases because of their convenience and security characteristics. Allowing credit card payments on your website might make it easier for your customers to shop without worrying about making an upfront payment.

Is Stripe suitable for online shopping?

With the help of Stripe, you can collect payments from clients all over the world both online and in person. Additionally, our platform uses machine learning to increase conversion and decrease fraud.