The method of payment in E-Commerce websites

In any business, the flow of cash is its most important aspect. In E-Commerce websites, this flow of virtual money takes place via payment gateways. These gateways are generally embedded in the website architecture. Customers pay for goods delivered and services rendered by credit card. Online bank transfer is also a common method of payment. Payment is done through a payment gateway.

The payment gateway is a link that hooks up the client’s E-Commerce website to the client’s merchant account. It is installed to ensure that the connection between the secure order form and the particular merchant account at a processing bank is maintained. The form data is submitted to the gateway and then it is presented to the processing bank. After the bank responds, the data that is returned is offered to the original site for a correct response. Keep in mind that the gateway generally has no provisions for shopping carts. Some larger payment gateway providers, however, offer extra services.

We can consider three factors when we compare gateways. These three factors are the features available in a particular gateway, its reliability of handling transactions and the consequent cost. Other than these three factors, security of transactions is a very important consideration. This is crucial-as personal information of clients is transmitted through the gateway every day. Financial information, if it falls into the wrong hands, can cause a great deal of damage. This also negatively affects the trust and reputation of the website. As a client, security should be your major point to consider when selecting a particular gateway provider. Almost all gateways are compliant with security protocols maintained by important credit card providers. This includes the MasterCard Site Data Protection (SDP), Discover Information Security and Compliance (DISC) and Visa Cardholder Information Security Program (CISP). Non-compliance may lead to your business account being closed.

Payment gateways can offer more than just payment. Many gateways provide frills that may make conducting business easier for the client. A virtual terminal is such a one. You can manually enter credit card payments. It is used when a potential client phones you about your product or service. It is then possible to process the client’s credit card over the spot by using the virtual terminal. Another useful service is the prevention of recurring billing. You key in the amount to be paid by the customer- and the extra work is done by the gateway. This feature is preferred by membership based businesses. Deterrence of fraud is also a major concern. Charge backs are minimized. Other fraud deterrence tools include Address Verification (AVS) and CVV2. The CVV2 is a security number of three digits that is visible on the back of MasterCard, VISA and American Express.

The E-Commerce website and subsequent E-Commerce development comes with standard expenses. Costs include the initial set-up fees, monthly fees and transaction fees. Extra features if any in the payment gateway is usually accompanied by extra charges.