An introduction to payment gateways.

If you’re already doing business domestically, you’re probably familiar with the concept of the payment gateway. Essentially, it is the software that acts as the intermediary between you and your buyers. Its purpose is to facilitate the payment to ensure that it is conducted securely and seamlessly for all of the parties involved.

The gateway’s processing of the customer’s payment takes place through several steps. These include the following.

• Your customer makes an order and enters their payment information into your ecommerce shopping cart.
• If you have SSL encryption — which you should — the customer’s information is encrypted and safely transferred to the gateway. Alternatively, the gateway can gather the data without it ever needing to be stored on your website, eliminating the need for you to comply with PCI DSS standards.
• The gateway converts the information and forwards it to your bank.
• The gateway contacts your customer’s credit or debit card company to ensure that there are sufficient funds in the account to make the payment.
• The customer’s bank/card company sends a response to the payment processor and gateway stating that the payment has been accepted or declined.
• Your bank makes a batch settlement request from the customer’s bank at the end of the day.
• The payment is forwarded to your bank and then deposited in your merchant account.

Although this process seems complicated, the payment usually takes place in a matter of seconds, with funds deposited into your account in just a few days. Throughout the process, the gateway should employ anti-fraud and chargeback reduction tools to safeguard the privacy and integrity of the sensitive customer payment data that is being exchanged.

Using a payment gateway for your global retail business.

Whenever you engage in online payment processing, you need a secure way to get the money from your customers’ bank accounts into yours. If you are working with buyers over the border or across the pond, this task is accomplished by an international payment gateway. Below are just some of the things an international payment gateway will do for your ecommerce operation.

• Analyze, encrypt, and transfer information from international customers.
• Validate the reliability of the international transaction and currency.
• Accept multiple forms of currency that are in line with your customers’ preferences.
• Integrate with other ecommerce systems and technologies to facilitate smooth and secure payments.

Especially because different nations have their own unique payment systems and protocols, it is essential to have a competent solution that acts as the intermediary between you and your customers. In many respects, it is your international payment gateway that provides the security, and payment, and currency flexibility that will lead to customer trust. The right gateway can provide a safe and seamless experience that will engender trust and bolster your reputation as an honest international seller.

How to choose the best international payment gateway for your business.

With global marketing at an all-time high, it probably comes as no surprise that many vendors are competing to provide you access to an international payment gateway. Not all of the available options are created equal. That’s why it would be wise to devote time and attention to the selection process to ensure that you ultimately choose the gateway partner that is best for your business — one that inspires maximum international customer confidence. Consider the following elements as you review your gateway options.

• Safety and reputation. The gateway you choose should be able to demonstrate the ways it can protect the customer information it stores and transmits, including how it complies with security standards and guidelines.
• The gateway should have connections with banks that use the international currencies you want to accept. It should also be equipped with smart routing technology that chooses the best acquirer for a particular transaction, thereby cutting down on declines and chargebacks.
• After researching your particular customer base, you’ll better understand the country-specific payment types they prefer. Only then can you choose the best gateway, one which accommodates the unique ewallet and payment preferences of your international buyers. In all cases, you should be sure that your gateway provider accepts Visa and Mastercard, the two most popular online payment methods in the world.
• Find a gateway that offers a wide variety of transaction and settlement currencies. The transaction currency is what your global customer sees. The settlement currency is the monetary denomination that you receive when your profits from sales are wired to you by the gateway provider.
• Your gateway should offer fully translated checkout pages in the languages your customers speak. If these are not available or if the wording is awkward, it will reflect on the credibility of your business and could lead to shopping cart abandonment.
• Select an option with robust fraud protection. International transactions are riskier and subject to data breach. Therefore, choose a provider that is committed to safeguarding the security of your customers’ data.

Expanding your business into the global marketplace just might be one of the most profitable and exciting moves you’ll ever make. After all, doing so can boost your customer base and diversify your buyer pool, making you less vulnerable to nation-specific economic variables. What’s more, it can enable you to diversify the types of products you offer, giving your retail operation a fresher, more cutting-edge approach.

In order to make that happen, carefully choose an international payment gateway that can flow and grow with your expanding ecommerce operation. The ideal choice will provide you with the payment security and credibility that are vital if you are to succeed in selling to customers over the border or across the world.