What is a payment gateway for eCommerce and how does it work?

We all know that payment is the critical moment in any transaction—especially in digital businesses. It’s far less common for a customer to change their mind right when they’re about to pay in a physical store, but cart abandonment is perfectly normal in online commerce. Today we’re going to explain what a payment gateway is in eCommerce and the key aspects that make users feel safe when paying in digital transactions.

Security is precisely one of the essential factors when setting up an online payment gateway. Digital transactions are highly sensitive moments in which users may feel exposed, since they are about to share their banking details with an external party. At this stage, you can’t have too much security.

What is a payment gateway for an eCommerce?‍

The best way to understand what a payment gateway is for an eCommerce is to think of the brick-and-mortar world we all know. In reality, it’s simply the online version of the usual point-of-sale terminals where we pay for the product or service we’ve chosen.

It’s a tool that decisively influences the most sensitive point in the customer’s purchase experience. Put simply, a payment gateway for an online store is the software that enables the merchant to take payment, establishing the connection between the bank that pays (the customer’s) and the one that receives the transaction (the merchant’s).

There’s a wide variety of online payment gateways, and one key factor must be present in all of them: security. Every eCommerce must ensure that the chosen gateway has anti-fraud encryption mechanisms in place and complies with PCI DSS v3.2—required of any business that stores, processes or transmits card data.

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How do payment gateways work?

Once we know what a payment gateway is, it’s time to look at how it works. It’s a complex operation that software resolves very simply in just a few seconds. Here are the steps at a glance.

• The customer selects the services or products they want to buy, adding them to the eCommerce shopping cart.
• They fill in the checkout form, including their bank details.
• The user’s data is encrypted and securely incorporated into the payment gateway.
• This is when the online payment gateway communicates with the bank and provides all the data supplied by the customer.
• The bank checks this data and approves or declines the transaction.

seQura: How do our payment gateways work?

Everything we know about payment gateways takes on a new—simpler and safer—dimension with seQura. Because if you choose seQura, everything becomes easier and more secure.

With seQura, customers buy differently, because they don’t pay until they’ve received the product they chose and confirmed it’s what they were looking for. Plus, they can split their payment into three, choose installment payments or opt for pay later to better manage expenses in those months when unavoidable outlays pile up.

And that flexibility in how to pay goes hand in hand with ease of use. As we mentioned, digital businesses using the usual gateway make customers fill in a form with all their personal and banking details. With SeQura, the process is much simpler. We offer three different solutions that work as a payment gateway for eCommerce.

• Pay later. This service lets your customers pay nothing for up to seven days after purchase. And it couldn’t be simpler. A single click is enough to activate the online payment gateway. Best of all, there’s no extra cost for the consumer. There’s no better way to increase your conversion.
• Installments. A unique solution to enhance the user’s shopping experience. It allows payment over several months with no interest, giving your eCommerce a clear competitive edge. No logins, no waiting, and in real time.
• Split into three. SeQura also offers this option, which lets customers pay in three convenient installments. A flexible alternative to traditional financing that will attract new customers and build loyalty among those who already trust your business.

Now that you’re familiar with the different payment gateways, if you have an eCommerce and need advice or have any questions, don’t hesitate to contact us and we’ll provide personalized guidance. At SeQura, we make a wide variety of payment methods available to eCommerce merchants to make it easier for your customers to pay for their purchases. Start boosting your eCommerce sales today!