Why Use a Payment Gateway

August 9, 2022

Why Use a Payment Gateway

An online payment gateway is an E-commerce service that processes, verifies, and accepts payments for Merchants using a secure internet connection.

Any business that accepts online and card payments require the services of a payment gateway. Payment Gateway technology safely transfers financial information between the transactional participants involved in order to authorise an online payment.

The Benefits of a Payment Gateway

  1. Reduces fraudulent transactions. Using a payment gateway will allow Merchants to reduce the frequency and severity of fraudulent transactions. Using a tool such as Kount will provide a further layer of fraud protection.
  2. Acts as a go-between for all parties involved. A payment gateway will transfer payment information between every participant, such as consumer; merchant; fraud mitigator; issuing bank; acquiring bank; and card scheme. Encrypting the data further protects against fraud attacks.
  3. Smooths checkout process. Consumers are less likely to abandon their carts when the checkout process is slick. Using a payment gateway helps reduce friction when it comes to processing a transaction.
  4. Increases brand credibility. A payment gateway can allow the checkout page to appear on the Merchants’ website as opposed to redirecting the consumer. This gives the Merchant more brand credibility as their payment process presents more professionally.

Stay PCI DSS Compliant

The major card schemes have instigated a set of rules that anyone who has access to card details must follow. These standards are known as the Payment Card Industry Data Security Standard (PCI DSS).

Using a white label payment gateway such as Cardstream allows Merchants to comply with the PCI DSS standards without having to do all the hard work. Cardstream is a Level 1 PCI DSS accredited company, so Merchants can rest easy knowing all payment information is secure.

Payment gateways act as the protector of payment data by encrypting all sensitive information. Payment gateways can also help manage chargebacks and fraud.

To take your payments to the next level, contact Cardstream and learn how we can help.

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