How Payment Gateways Assist Merchants

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In today’s payments landscape, one concept reigns supreme: customers demand the option of paying in the way that suits them best. For most consumers, that means allowing them to pay for goods and services online. To meet these customer needs, merchants can employ a payment gateway to accomplish this goal.

What is a Payment Gateway?

By definition, a payment gateway is a combination of hardware and software that provides merchants with the ability to perform real-time credit card authorizations from a website over the internet. This transaction-processing technology captures, stores, and transmits card information from the customer to the acquirer (aka the financial institution that processes card payments on behalf of merchants while maintaining the merchant account). It then shares the payment acceptance or decline notification back to the customer.

Essentially, the payment gateway works as a middleman between the customer and the merchant acting as an interface between a merchant’s website and their acquirer. Payment gateways process online payments, authenticating and safely passing cardholder data among the parties within the transaction flow.

Advantages to Using This Technology

Payment gateways streamline payment acceptance and overall operations that can improve cash flow and save time and money. Here are other key advantages:

  • Fast set-up time that allows merchants to process payments quickly
  • Accepts multiple payment types such as credit, debit & gift cards, as well as ACH
  • Runs online and supports many payment terminal devices
  • Provides one-time or recurring payment options for its users
  • Secures customer data through PCI-compliance, tokenization, and encryption

Learn More About Our Payment Gateway Solution:

Contact us online or call 1-800-621-8931.

Check out i3 Commerce Technology’ newsroom.

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