What Is a Secure Payment Gateway and Why Do I Need One?

You hear a lot of new buzzwords thrown around these days. Phrases like “secure payment gateway” are passed around, and it is simply assumed that you should know what it means and know why it’s important. But the average internet user doesn’t necessarily know what it is, even though they may know that, for whatever reason, it’s a good thing for the seller and merchant.

In these high and heady days of free access to all the information in the world, everybody takes shortcuts. People have come to terms with the fact that they must specialize; anyone who tries to know everything is going to burn themselves out in the process of trying, so people pick their specialties and, for everything else, rely on the expertise of others. But when it comes to secure payment gateways, it’s not that hard to grasp the basics, and it’s in everybody’s best interest to understand why they are important.

Two heads are better than one. Secure payment gateways have a big job ahead of them; they’re trying to make the internet a safe place to do business, and they need your help. That’s why it’s important for you to understand why methods to accept online payments need to be used safely and responsibly.

1. What is a secure payment gateway? You use payment gateways for websites to allow you to send and receive payments. They provide a secure relationship between the business, your card providers and banks.

2. Why do I need one? A payment gateway ensures that your financial information is transmitted securely to online merchants. When you use a secure payment gateway, the people you do business with don’t have direct access to your banking details, so you are at no risk of being defrauded.

3. Why does my business need one? Payment gateways allow you to receive payments under an extremely secure channel with compliant to the PCI DSS protocol. They reduce the business risk for you and give your potential customers the peace of mind to do business with you.

4. What is PCI DSS? PCI stands for Payment Card Industry, but when you hear the term “PCI compliance,” it refers to compliance with PCI DSS (Data Security Standard). PCI compliant payment gateways are ones that maintain a set of data controls and security measures designed to prevent credit card fraud.

5. Are payment gateways for websites easy to use? Payment gateways aren’t just about security. They allow you to save your payment information for quick and easy repeat checkouts, offer the ability to set up subscription payments at no extra cost and are designed to work with a wide range of third-party online shopping carts.

6. How much does it cost? Payment gateways are usually free to open an account, with only small fees for certain types of transactions. Many also include a robust resolution center that facilitates handling disputes with customers to minimize the potential for chargebacks.

For Businesses: Using payment gateways to accept online payments removes barriers and gives your clients a smooth the path towards the final sale. Providing your customers with the most convenient payment options can have a dramatic effect on the rate of completed online transactions and the growth of your online business.