Payment gateway for e-commerce

What is an e-commerce payment gateway?

Electronic or digital payments are almost impossible without a payment gateway. So, what is it, and why is it important for the e-commerce sector? Let’s clarify it below.

A payment gateway represents a technical solution to help those who sell products or services accept payments from their customers online. Thus, if a business doesn’t utilise any payment gateway, it can’t accept online payments by the customers.

Of course, it’s just a high-level definition. But there is good news: e-commerce business owners do not necessarily need to know the nuts and bolts of a payment gateway's performance.

How does it work?

The path of each transaction is quite simple for non-specialists. But transaction processing involves several parties and is executed in several stages. Here’s the list of the essential highlights about payment gateways’ performance:

  • Customers place orders on a website, enter the cart, and proceed to checkout or a payment page to fill out the billing details.

  • At this stage, a payment gateway becomes engaged. It accepts the payment data, encrypts it, transfers it via a secure channel to a payment processor, and redirects the customer to it.

  • The processor leads the customer through the steps needed to complete the payment and checks if the payment was successful. Then it displays a message with appropriate status to the customer.

  • The final point is when the customer is automatically returned to the online store.

Why do e-commerce businesses require a payment gateway?

So, you are the owner of an online store or service. Your main goal is not only to sell a product or service but also to make the buying process as convenient as possible for the end-user. Connecting to a gateway is a simple but very effective solution that can help you.

A payment gateway is a tool to process any type of transactions online. It also ensures the secure transfer of transaction data between a buyer, a merchant, and an acquirer.

Here are the benefits your business gets when partnering with a payment gateway:

  • Full automation and fault tolerance.

  • Working hours 24/7/365.

  • Information is transmitted securely and encrypted with different keys. Users receive a reliable service that does not transfer data to third parties.

  • Payment system consumers do not buy hardware and specialised software. Suppliers are responsible for this.

  • Payment and bank card details are provided only to the gateway, not to the merchant.

So, a payment gateway is part of the process of online payment. It is responsible for the reliability and security of data transmission between a buyer and a seller. All information is encrypted and not available to third parties.

As a business owner in the e-commerce sector, you may want to receive your payments safely and hassle-freely without any failures. And all purchasers also want to buy and pay conveniently and securely. These are the main reasons to use a payment gateway for the processing of online transactions.

What is the difference between payment gateways and payment systems?

A payment gateway is a complex of hardware and software that is responsible for payments processing. It encrypts the payment data and is responsible for the clients’ correct authorization. It provides the interconnection between the buyer and the seller.

Payment systems are responsible for accepting funds. In most cases, these are different systems, but large companies sometimes combine these two services into one. There are systems that at the same time ensure secure data transmission.

Corefy represents a reliable payment orchestration platform that ensures secure and smooth payments processing.

We provide complete fault tolerance and round-the-clock acceptance of digital payments from websites, stores, or mobile apps. We support hundreds of payment and payout methods and currencies. Corefy also meets the strictest requirements of the highest PCI DSS to ensure that your payments are highly secure.

Contact our team of specialists to find out more information on how you can benefit from partnering with our platform. We are eager to help your business grow and develop.

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