What is a payment gateway?
An online payment gateway is an e-commerce application service provider that authorizes payments for online businesses and retailers. It acts as a mediator between the merchant’s website, the customer, and the acquiring bank, which receives customer payment. For example, payment gateways facilitate secure credit card payments by encrypting sensitive information, such as credit card numbers, to ensure that information passes securely between a merchant and their customers.
For online businesses and merchants, payment gateway India provides convenient methods of collecting payments online from customers in real-time. This makes it easier for them to accept payments through websites or mobile applications without processing them manually or signing up with traditional banks.
The ten most important steps to setting up your payment gateway:
Do you have any particular currencies of countries in mind that you would like to support? The process becomes more complicated if you wish to offer more than one currency. The involvement of other banks, known as correspondent banks, in cross-border processing transactions also makes such transactions more expensive.
Decide with whom you would prefer to work. This will enable you to identify which payment gateways should be enabled and which MCC codes should be targeted.
Your acquiring partner should be comfortable working with an online payment gateway or payment processing solution tailored to the industry in which you operate. Currently, payment platforms strive to provide high flexibility and robustness. Therefore, choose a platform that can be customized according to any challenges or requirements you may encounter.
Are there any potential acquirers you are considering? Of course, the most crucial step would be acquiring an acquirer partner. Further, it facilitates access to the banking system and serves as your backbone.
Whether you develop your solution or use a payment gateway India provider, integration specifications should be provided to the internal development team.
There should be an open dialogue with the gateway service owners regarding any technical limitations, timelines, and costs associated with future service provision.
Discuss your integration process with your acquisition partner. Find out how to connect your payment gateway by receiving the bank or switch’s specifications.
Ensure that agreements are entered into with your acquiring bank, PCI assessor, and payment gateway service provider, as needed. Make sure you remain alert and take the time to review, debate, and assess the information presented. This will help you avoid misunderstandings and costly pitfalls in the future.
Strategy for forming partnerships-
For future merchants and partners, ensure an effective integration strategy. Identify your existing customer base and develop a migration strategy. Depending on your new partners’ MCC code support, some merchants may have to be “dropped”.
Consider bringing in a PCI assessor if such an evaluation is valuable.
Setting up an online payment gateway can be daunting, but following the ten steps above will make the process much easier. It is important to take the time to research and consider what options are suitable for your business. Review all the regulations, terms, and conditions associated with setting up a payment gateway and ensure that you understand them before moving forward. Taking these steps into consideration will help ensure a successful outcome in establishing a payment gateway for your business.