For businesses that are looking to accept credit card payments online, security is always an issue. You want to be able to reassure your clients that their important financial numbers are not going to be misused, but if you have the numbers stored on a computer, they are vulnerable to a hacker attack. The solution? A payment gateway company.



What It Is

These companies provide a method of verifying credit cards in real time by sending the information immediately to a bank. There is no information stored anywhere since it is simply transferred. If the card is not reported stolen or wanted for fraud, then the transaction will be continued.

There are numerous benefits to using this technology. For one, no stored credit information means that the client's payments are as secure as they can be, something the business can promote when encouraging sales. Many people are wary of paying online and the assurance of secure processing tends to help them make a decision to buy.

Another advantage to the business is a large reduction in the number of stolen or fraudulent card numbers being used, which protects the business from monetary loss, as well. While it isn't possible to completely eliminate the use of invalid card numbers, using a system like this will definitely keep the problems to a minimum.

How to Choose a Payment Gateway Company

Not all companies are the same. While all process the information in a similar manner, online businesses need to ensure that they are choosing the right payment gateway company for their business. It's a good idea to check out several companies and read reviews if possible so you can get a better idea of what to expect from each one.

One of the most important areas to look at when choosing a payment company is which shopping carts they support. For companies that are just getting started, this isn't a big problem because they can set up a shopping cart that can be easily integrated with the payment service of their choice. However, if the business already has a shopping cart and has set it up with their products, chances are, they will want to find a company that will work with the cart the business is already using.

It's important to check the rates and fees, as well. Some companies charge a fixed rate per transaction, others will charge a percentage. Compare prices to be sure your business is getting the best deal for the number and type of payments that your company will be receiving. For example, if the majority of a business' products are under $10, a fixed fee of $1 per transaction will be more than a percentage of 2.5% per transaction, but if the majority of the sales are over $50, the fixed fee is far more economical.

Payment gateway companies are not required in order to do business online, but they should certainly be considered. Choosing the right one is very important, since it can affect the future of your business.