A payment gateway collects payment data from the customer and sends it to the provider of a product or service, then sends the acceptance or rejection back to the customer. A payment gateway india service provider securely validates credit or debit card data, ensures creditworthiness, and finally allows payment.
The Importance of a Payment Gateway
The subscription business, in particular, has witnessed a surge in online buying in recent years, so a sophisticated, secure payment system is required. The payment gateway is the key to a simple and successful online payment transaction, particularly for recurring payments. Gateways play an important role in e-commerce and subscription business thanks to the high number and diversity of gateways. Gateways are an essential part for any online purchase, as transactions they play a critical role in the entire process. Because of the automated process, payment gateways are especially important in subscription business.
The choice of payment gateway
Since banking information and financial details are delivered by users here, security is crucial. A payment gateway must have a high level of security to protect the users' information. The PCI-DSS or PCI Data Security Standard (DSS) is a set of rules and security standards which payment gateways have to adhere always. A website may increase customer friendliness and sales performance by offering a variety of payment options. To allow the customer to complete the purchase, some providers offer the option to complete the purchase directly on the server side or to third-party websites. The location of the transaction should also be considered.
The impact on the churn rate
The decision to use the correct payment gateway also has a significant effect on customer satisfaction and, consequently, on the churn rate of a subscription organisation. Subscriber churn refers to customers that terminate their connection to a company, product, or service. Customers frequently drop out when the transaction process is erroneous. Companies with high churn rates (may) analyse the error types in the (recurring) payment process. Credit card errors are frequently responsible for a failed transaction process, but these can be remedied quickly by the provider, resulting in lower churn rates.
The Payment Gateway transaction process
Having a payment gateway in place provides the highest level of security when processing transactions. A payment gateway handles many tasks to execute the transaction after a customer orders a product from a vendor. When the customer makes a purchase, the payment process begins on a payment page on either the company's web site or that of a payment provider. The sensitive payment data is encrypted and sent to the bank via a payment gateway token. The requesting bank then sends the information to the card schemes or payment provider for a second level of fraud checking, which in turn passes the payment details to the issuing bank. After this a fraud check is done by the issuing bank following which the transaction is authorized. The authorised or declined payment message is then returned to the buyer. The acquiring bank sends the authorised or rejected payment message to the payment gateway, which in turn forwards it to the merchant. The buyer will receive the payment amount if the payment is approved. The funds are deposited into the merchant's account based on the agreement between the merchant and the payment gateway provider.
What additional measures do payment gateways india offer?
Most of the time, payment gateways offer various additional tools to better cover different industries and payment methods.
- Fraud prevention measures - To ensure the integrity of online transactions, fraud prevention procedures must be implemented. Fraud has become a routine aspect of e-commerce, particularly credit card fraud. AVS (Address Verification System) and CVV (Card Verification Value) are two examples of fraud mitigation procedures provided by payment gateways..
- Address Verification System The Address Verification System verifies the identity of credit card holders. The billing address on the credit card is checked and compared with the information on the billing address.
- Recurring payments Subscriptions are an important aspect of e-commerce. Because of this, payment gateways frequently offer recurring payments that are scheduled on a regular basis.
- Payment history All payments are recorded and can therefore be used for future reference.
Summary - The Nimbbl payment gateway india is a cost-effective and user-friendly payment checkout solution that provides multiple payment gateway providers in one integration. It provides a fast checkout experience for your customers leading to higher conversions. It is designed to be simple to use while providing a high level of protection against fraud. You can easily integrate your ecommerce store with Nimbbl payment gateway and accept payments from your customers within no time. The integrated technology within Nimbbl helps you manage risk and increase revenue. You can also expand your business without worrying about the high costs associated with fraud or chargebacks. Affiliated merchants can easily integrate their ecommerce website using this payment gateway solution.
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