Why Do Merchants Need Payment Gateways?
If you’re a small business owner that is just getting started, you may be unfamiliar with much of the terminology surround sales transaction processing. To begin processing customer payments, there are a number of investments that you must make in hardware and software to support processing services. Today, most consumers use credit or debit cards when making purchases online in or in stores. In order to be able to process credit and debit card payments, merchants must purchase a payment gateway.
Payment gateways are secure channels through which confidential card information can be safely transmitted. When a customer makes a purchase online using their credit card, their personal information is encrypted by the web browser and forwarded to the merchant. The merchant then automatically transfers that information through a payment gateway to their banks payment processor. The processor receives a response from the card issuer’s bank and an authorization of funds is sent back to the merchant through the payment gateway. This entire process happens very quickly and can be completed in 2-3 seconds.
Although there can be a sizeable investment and recurring fees associated with accepting credit and debit card payments, it’s essential for most businesses. Most people simply prefer to use payment cards and businesses that refuse to accept payment cards may lose business from willing customers that don’t carry cash.
Vision Payment Solutions supports merchants through a variety of transaction processing solutions designed to reduce your processing overhead and help you process transactions as quickly as possible. One of our top payment gateway solutions is Authorize.net.
Authorize.net is a payment gateway with unique solutions to help make your operations easier and decrease your overhead. More than 35,000 merchants trust Authorize.net to help them with payment card processing and fraud prevention. This payment gateway also includes virtual terminal and batch upload features. The virtual terminal allows merchants to be able to accept credit card information over the phone or manually enter credit card information for a card that will not swipe correctly. The batch upload allows multiple transactions to be consolidated into one file for submission.
To learn more about payment gateways and other payment solutions, contact VPS today at (877) 674-2286!