In today’s digital-first, fast-paced world, the form that payment methods can take is becoming increasingly malleable with the rapid pace of technological development. Gaining a thorough understanding of the different payment services available to businesses, and which one is best for your needs, can feel confusing sometimes. In this post, we’ll take a deeper dive into the subject of payment gateways, and some of the most common ways to accept payments online.
What is a payment gateway?
In short, a payment gateway is a secure tool that allows you to validate a customer’s credit and debit card details, and ensure that there are available funds for you to get paid.
You can essentially think of payment gateways as the online equivalent of a physical point of sale device in a brick-and-mortar business. They allow a customer to submit their card details over a secure, PCI DSS compliant channel to the merchant, then communicate them between the merchant and their bank accounts.
Your payment gateway will let you know whether any given charge has been approved or not by a customer’s bank, and will then process the charges for settlement with your business bank account.
Methods of accepting payments online
Ecommerce
Ecommerce platforms often provide their own method of processing payments wrapped up in their standard monthly fee. These suites come ready for integration with many of the more popular virtual wallet services, such as Google Pay, Apple Pay, PayPal, and Samsung Pay. With the ability to save your details and pay for an order with one click of a button, this is the preferred method among large swathes of the public.
The second most popular eCommerce payment method is a credit or debit card payment processed by an acquiring bank. While there isn’t much difference in the way these are used by the customer vs digital wallet services, it can mean a host of new challenges for a small business, including extra bookkeeping responsibilities and more transaction fees for processing the payments.
BNPL (buy now, pay later) payment processors are another common method for accepting eCommerce payments. This credit payment option allows customers to split their whole payments into instalments, usually without interest. In the past, these were typically reserved for big-ticket items, but today more and more retailers are accepting them for small, common purchases.
Virtual terminal
Virtual terminals are web-based apps that will allow you to accept card payments through any computer with an internet connection. Similar to the card terminals you’ll see in a brick-and-mortar business, this software can accept both keyed-in and swiped transactions, though the latter will require a terminal that’s compatible with a physical reader that plugs into a computer USB port.
These are an attractive option for many businesses as they can be accessed from anywhere and from any device. They also cut out the need for equipment leases, and give you access to real-time transaction tracking and recording.
Pay by link
Pay by Link payment options stand out for their user-friendliness and simplicity, allowing your customers to make online card payments via a secure link. Relatively unheard of in the online store sphere, this is a more popular method of payment processing with small service-based businesses and B2B merchants.
With a pay-by-link system in place, you’ll be able to send a payment link invoice via email, letting your customers pay with one or two clicks, thereby cutting down on time spent chasing late invoices and bills.
Many pay-by-link service providers pride themselves on simplicity and will set up any new merchant account with an interface that allows them to create functional payment links after entering a few details. Their universal ability to be used by customers and clients all over the world is also an attractive trait.
Payment gateway
As we explained earlier in this post, payment gateways are tools that allow you to securely and reliably validate a customer’s payment details, and run a quick check that the funds for the transaction are available.
The way that payment gateways guarantee secure transactions through high-standard encryption software, hiding sensitive data and protecting both parties from the risk of fraud, makes them essential for many online businesses.
Leading payment gateway providers also bundle eCom shopping cart software with the actual payment software, allowing you to optimise the customer journey on your site while smoothing out the payment process at the end. These software suites will often calculate shipping charges, tax, and so on, feeding into your bookkeeping and freeing up time that would usually be spent on gruelling admin.
Like pay by link and virtual wallets, payment gateways also help to expand your customer base by making your business accessible to customers based all over the world.
If you’re looking for a way to make any online payment quick, secure and effortless, check out the MultiPay payment portal and get a quote today!
