A Beginners Guide to Credit Card Gateway

October 26, 2021

Do you know what a credit card gateway is? If not, don't worry. The article will provide an overview of this essential and often-overlooked component of the eCommerce process.

What Is a Credit Card Gateway? 

A credit card gateway is an online service that allows your customers to pay you via their credit cards. Gateways connect businesses to payment processors, major credit and debit card networks, and the issuing banks of your customers. It's frequently an unnoticed connection point working behind the scenes. 

Merchants of all sizes and industries use credit card processing gateways to process online, in-store, or both. Gateways offer simple integration and setup options, as well as access to powerful payment processing platforms. 

Benefits of Using a Payment Gateway 

Minimize Risk: Credit card gateways protect both you and your customer by reducing the risk of fraud. They are also PCI compliant for security purposes, making them a great choice if you're worried about stolen or misused credit card information. 

No Chargebacks: Customers can't contest payments made through credit cards because they have already been charged! This means fewer disputes with clients, less wasted time, and more revenue. 

Easy Integration: With the right payment gateway, you'll be set up in minutes! All of your credit card information will be stored securely so that it won't need to be re-entered every time a customer makes a purchase. This means fewer lost customers because they can check out faster than ever before. 

Variety of Payment Methods: Credit card gateways allow you to accept cashless transactions and payments in person with debit cards. This is beneficial if your business depends on face-to-face interactions. Still, it's also useful for online companies that have clients all over the world. 

Disadvantages of Using Credit Card Gateways 

Credit card gateways can't be used everywhere. Some payment processors don't accept them, so you'll have to check with your preferred option before getting started. Suppose they do support credit card processing through a gateway. In that case, it may take longer or cost more than using another method of collecting payments. 

The best choice for a merchant depends on the size and needs of their business. For some companies, cashless transactions are essential, while others rely on face-to-face interactions. No matter what you're selling online or in-person, though, there is likely a solution that meets your requirements. 

What Else Do I Need? 

In addition to choosing a credit card gateway, you'll also need: 

A merchant account: This is the actual bank account that processes your transactions, and your credit card gateway provides it. You'll typically need to have a registered business, an EIN, and a sales history before being accepted for one of these accounts. A shopping cart or website platform - You can't process payments without having some way for customers to buy from you, so make sure you select a helpful eCommerce service, whether it's Shopify, Woocommerce, Magento, etc. 

Marketing channels: Customers won't purchase anything if they don't know about your store! Spend time creating compelling product descriptions with engaging copywriting techniques to attract new leads. Use social media marketing or search engine optimization (SEO) to get your business ahead of more buyers. 

Credit card gateways are the best way to accept credit cards online. They're a fantastic option if you don't want to deal with high fees, chargebacks, and other problems that come with accepting cash. If you've never used one before, then start researching your options today. 

Contact BNG Payments to learn more.


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