Online transactions are fast and convenient, and thanks to the Internet’s global reach, you can just as easily sell to customers down the street as you can to shoppers on the other side of the world.
Yet, online transactions are also mostly anonymous, making it very difficult to verify if buyers are who they say they are.
This is why e-commerce payment security is so important. To reduce fraud within your online store, you need to take proactive steps to prevent criminals from accessing or abusing sensitive credit card data. One of the best tools at your disposal is the online payment gateway.
What Is a Payment Gateway and How Does It Work?
Essentially, a payment gateway is a conduit that seamlessly and securely connects your e-commerce application or in-house payment application to the credit card processing networks.
A payment gateway is to e-commerce stores what a point-of-sale (POS) terminal is to brick-and-mortar shops.
However, because online shopping involves distance and anonymity, payment gateways use special encryption and verification technologies to ensure that legitimate transactions are securely transmitted.
Having the right payment gateway provider can help dramatically reduce both the frequency and severity of credit card fraud within your e-commerce business — but the benefits don't stop there. Below are some additional advantages of having a secure payment gateway:
1. Ease of Use
If you already have a merchant account and website, setting up a payment gateway is incredibly easy and there is very little maintenance required. Moreover, most online shoppers are already familiar with payment gateways since the majority of e-commerce sites come equipped with this technology.
2. Branding and Control
Some online payment solutions redirect users to a third-party site to complete their transaction. But a payment gateway allows you to keep customers on your site — from start to finish. In addition, you can easily brand your checkout page to make it look and feel like the rest of your site.
As a result, you’re able to control every aspect of the user experience. Equally important, you can reduce cart abandonment rates by removing interruptions and confusing redirects.
3. Faster Settlements
When using third-party payment methods, you may have to wait several days for a transaction to completely go through. You might even need a few additional days for that money to arrive in your account.
By contrast, payment gateways offer much faster settlements, which can be a major bonus if cash flow is a concern.
The reverse is also true — when necessary, you can quickly refund purchases so that customers don't have to wait a long time to get their money back.
Getting the Most Out of Your Website Payment Gateway Solution
The above benefits of credit card payment gateways are very real. However, it's important to take additional steps to ensure your customers enjoy the safest shopping experience possible. Many payment gateways automatically come with varying levels of data protection, and you should only consider payment gateway services that adhere to the latest PCI compliance standards.
Nonetheless, PCI compliance represents the bare minimum you should accept when it comes to online payment security. This is because cyber criminals continue to improve their tactics as they look for vulnerabilities within e-commerce stores.
At BluePay, our PCI-compliant payment gateway comes with extra security protection to make your online business as unattractive as possible to potential cyber criminals.
Some of our most popular data security solutions include:
- Credit card tokenization — your customers’ account information is automatically substituted with one-time tokens that only our secure payment processing technology can read. These tokens expire after the transaction goes through, making them useless to anyone else — including thieves and criminals.
- Fraud management filters — we provide different filters to automatically flag suspicious transactions within your payment environment. These filters allow you to block transactions from certain countries or IP addresses. You can also put restrictions on purchase amounts (min and max) and on how frequently new transactions can take place.
- CAPTCHA – used with hosted payment pages, this security method asks the customer to identify a combination of distorted letters of numbers, or identify pictures, to distinguish a human user from a robot during checkout.
The primary benefit of hosted payment pages is that you don't capture any credit card data directly on your site. The transaction takes place on our secure servers, allowing you to reduce your PCI scope. Yet, thanks to advanced customization options, you never have to sacrifice control over your store's branding.
To learn more about our secure online payment services, contact us today for a free consultation.