There aren't many successful ecommerce websites who only accept checks. Businesses need to be able to process payments through the Internet in order to earn as much revenue as possible. It is important to find solutions that will make payments fast and easy for your customers while ensuring that you have the ability to accept their payment.
US Merchant Systems provides payment processing solutions to small ecommerce businesses that enable them to handle any kind of transaction. Being able to accept credit or debit card payments online is incredibly important for ecommerce. Learn about ecommerce payment gateways and how they improve online transactions.
How Payment Gateways Work
A payment gateway provides ecommerce businesses with a method of transferring funds from the customer to the seller. A customer is able to place an order online and the payment gets sent to the seller while the gateway performs several tasks:
- Encryption: One of the most important points of the process is to encrypt the information being transferred between each party. Sensitive information, such as payment data, is crucial to protect to keep your business reputation. The web browser will encrypt the data being sent to the vendor's web server. It is then sent to the payment processor utilized by the vendor's bank.
- Authorization Request: The transaction data will also be sent to the card association, or whatever entity is in charge of the customer's credit card usage. When it reaches the credit card's issuing bank, they view the authorization request and approve or deny the request.
- Filling the Order: Once the payment is authorized, the processor forwards the message to the payment gateway. The gateway receives the response and transmits it to the website to process the payment. This is where the information is interpreted and the response is generated to the parties involved. The process is typically completed within seconds.
- Cleared Transactions: Finally, the transaction is finally cleared once the order has shipped. Until that happens, the transaction is changed from an "auth-hold" to a debit. The payment is then settled and the transaction is cleared.
How Businesses Benefit From Payment Gateways
Ecommerce businesses benefit from payment gateways because it provides them with the fastest and safest solution to receiving money from their customers. It is a much better alternative to waiting on customers to send in checks or money orders. Those methods are inefficient and risky because of the time between a sale and payment.
It is important for businesses to have a convenient and safe way to process payments because it promotes repeat business. Customers are more likely to return to the merchant if they found it easy to buy the products or services they were looking for. On top of the ease of use, customers also appreciate having a safe way to enter their payment information and keep their private data safe.
Take Advantage of USMS Payment Services!
If you are an ecommerce business looking for the best solution to processing payments on your site, US Merchant Services is your answer. We provide a wide variety of services that allow vendors to accept any form of payment. If you want to get started and have access to great resources for ecommerce businesses, give us a call at 1.800.655.8767 or contact us here!