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Payment Gateway Integration Methods

Payment Gateway is one of the important service features in e-commerce business sites. a payment gateway is a channel between an e-commerce website and the bank through which the credit payments is carried out.  It’s basically like a cashier’s desk. But instead of you being physically present to handle the transaction, your website does the job for you. Payment Gateway Integration has many methods we will discuss.

Payment Gateway Integration Methods

Direct Integration

it means that your customers enter their credit card information and delivery/billing address on your website and this information is sent to the payment gateway through a hidden background process via HTTP post or similar method.

Pros

  • Branding is maintained.
  • You do not need a PCI compliant website.

Cons

  • The transaction is not completely secure and could be compromised.

Hosted Payment Form

Payment form is located on the gateway provider’s server and you can customize some parameters to your design needs. In order to successfully complete each transaction, online shoppers temporarily leave your site, key in their credit card information, and then return to your e-commerce store.

Pros

  • Your website does not need to be PCI compliant.
  • You do not need to maintain the payment gateway.
  • There are no security concerns.

Cons

  • A customer has to leave your site to make the payment.
  • Sometimes due to a network error, a customer might not be redirected to your site after the payment.
  • Such a method is prone to a man-in-the-middle attack.

Virtual Terminal (VPOS)

it is basically the web version of a physical credit card terminal or Point-of-Sale (POS) machine. A virtual terminal will allow you to input your customer’s credit card information directly into a web-based payment form, which you can then use to process an electronic transaction. 

Pros 

  • you can take payments quickly and easily without your customer being present. 
  • You don’t need to invest in expensive point-of-sale software or traditionally expensive credit card machines. 
  • There are more freedom and flexibility transactions can be carried out anywhere, from any device and at any time, as long as you have an internet connection.

Cons

  • You need extra security measures in place to take card-not-present payments to avoid chargeback fees.
  • Keyed-in payments require more effort than a card machine transaction that automatically processes a contactless or chip and PIN card.
  • Fees are typically higher for transactions where the card/customer is not present than for card machine payments.

Server Integration 

it provides you with the option to handle transactions on your site, even though a payment gateway service provider will handle the actual processing. This allows a merchant like you, to style the look and feel of the payment form and the receipt page.

Pros

  • Improves Branding.
  • You can maintain customer sensitive data.

Cons

  • You need to be PCI Compliant or have an SSL certificate.
  • You need to improve security on your website since you will be maintaining customer details.

Advanced Integration

it is a customizable payment processing solution that gives the merchant control over all of the steps in processing a transaction. a merchant has full control over all the phases of a customer’s online transaction experience.

Pros

  • Full control over the transaction.
  • Connection to Payment Gateway needs to be made only once.

Cons

  • You will need an SSL certificate.

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