Technology
How to Integrate a Payment Gateway Into a Website Share:
As of 2024, the global number of online buyers has reached 2.71 billion, and this is not the limit. This figure is expected to rise to 3 billion online shoppers by the end of 2025. This statistic motivates businesses to make payments even faster, easier, and safer.
An online retailer should integrate a payment gateway into a website to accept transactions from bank cards, e-wallets, and other sources. When searching for the right solution, it is important to consider factors such as possible commissions, supported currencies, processing times, etc. When looking for the right software, you should focus on your business needs. In this article, we will explain how a payment gateway works and why your commercial website needs it.
A payment gateway has been developed as an online alternative to a physical card reader. This technology allows your customers’ information to be securely transmitted between the merchant and the acquiring bank. Once the bank authorizes the transfer of funds from their account into your merchant account, the transaction can be completed. In this way, payment gateways like Google Checkout, Avangate, or PayPal help online buyers pay for goods and services anytime and from any convenient location.
Businesses consider different types of online payment gateways, each offering specific functionality and unique integration. Customers should be able to choose the most convenient option. Here are the main types of gateways:
A hosted payment gateway is a third-party checkout system that redirects the user from the retailer’s checkout page to the service provider’s page. The user leaves your website to make the payment and then returns to complete the checkout process. There’s no need to store sensitive data, which speeds up digital transactions. However, limited control over the gateway increases operational and security risks.
A direct post payment gateway allows users to complete the payment without leaving the retailer’s checkout page. When purchasing a product or service, sensitive data is transferred from the website’s back end to the provider’s server for further processing. To ensure fast and convenient checkout, the retailer must meet high-security standards.
Your business can’t accept money directly through your website or mobile app without online payment gateway integration. Thus, your customers won’t have to leave your platform to complete their purchases. Select a provider that offers multiple payment options and keeps the checkout process both quick and simple.
To integrate a hosted payment gateway, you need to follow the detailed instructions on the service providers’ websites. The gateway can be linked via the API. Let’s say you use PayPal Checkout. Then, the integration looks like the Smart Payment Button, which happens to be a piece of HTML code. This type of gateway is suitable for small businesses or online retailers operating in specific regions.
To integrate a direct post payment gateway, the service provider needs to establish an API connection between the ecommerce website’s shopping cart and the provider. The owner’s involvement is minimal. This type of gateway is ideal for both small and large businesses.
The online payment gateway integration involves a series of complex processes. Let’s see how this technology functions:
Customer makes a purchase: When a customer wants to buy a product or service on your platform, they provide their credit or debit card (Visa or MasterCard) details on the checkout page.
Data encryption mechanism: The payment details are encrypted and securely transferred from your platform to the gateway.
Transaction transmission: The provider transmits the encrypted data to the processor for further handling.
Interaction with the card issuer: The processor sends the payment details to the customer’s card issuer or bank for verification.
Transaction authorization: The issuing bank reviews the transaction and either approves or declines it based on available funds and security checks.
Response to the payment gateway: The payment approval or denial is sent back to the provider through the processor.
Transaction completion: If the transaction is approved, the customer receives confirmation. If declined, the customer is notified about it.
Funds settlement: The payment provider sends approved transactions to your acquiring bank for settlement. The funds are then deposited into your business account according to the bank agreement.
The gateway ensures online transactions are managed securely. The whole process is automated and usually takes little time.
When you integrate a payment gateway into a website, you can expect certain benefits. Let’s see some of them:
Improved customer experience. Gateways provide quick and easy purchases, enabling high customer satisfaction.
Boosted operational efficiency. Businesses can accept any type of payment automatically, minimizing administrative overhead.
Rare transaction errors. Thanks to automation, gateways minimize human errors, such as the incorrect entry of transaction data.
Enhanced transaction security. Gateways incorporate payment data security standards (PDI-DSS) to safeguard both customers and businesses from possible fraudulent activities.
Effective cash flow management. Gateways enable automatic transactions, allowing you to receive payments quickly and enhance your cash flow.
Global expansion. Many payment gateways accept different currencies, enabling you business to approach customers across the world.
The cost of payment gateway integration varies depending on the country, the provider, and the level of customization required. It usually includes setup charges ranging from $0 to $500 and per-transaction fees up to 3.5%. Additional costs may include subscription fees, cross-border charges, chargeback penalties, maintenance expenses, and API integration fees.
Now that you are ready to implement payment gateway in website, you should pick the right provider. When searching, you should consider more than just the basic features.
Make sure the gateway complies with strong security regulations. The appropriate certification proves the provider protects financial data from possible threats. When working with a secure payment gateway, you protect your business from money losses and avoid damage to your reputation.
Choose a payment gateway with maximum uptime to ensure smooth transactions without interruptions. A reliable provider should offer 99.9% uptime or higher, minimizing downtime and technical issues. This way, you guarantee a smooth experience for your recurring customers while preventing lost sales and maintaining your platform’s reputation.
Select a payment gateway that is easy to embed into your website and all necessary tools. Look for ready-made plugins or a straightforward API guide to speed up the process. This ensures compatibility, saves time and enhances efficiency. For example, convenient integration with accounting or billing software automates account balancing, reduces errors, and provides real-time insights into your cash flow.
Look for a gateway that accepts multiple payment methods and currencies to expand your customer base. This should include major credit and debit cards, digital wallets, and local payment options. If selling internationally, ensure the gateway offers competitive currency conversion rates and transparent pricing for international transactions. Multiple options to make the purchase contribute to customers’ experience.
Make sure the provider supports currency conversion and offers payment methods for various regions and countries. This feature enables international transactions, allowing customers to pay in their local currency. With a smooth checkout experience, you can enhance customer satisfaction and expand your global reach effectively.
The gateway module should make a customer’s journey, from the shopping cart to payment approval, simple and clear. The visual design should create a smooth checkout experience. When it comes to data processing and contact with the payment gateway, the backend should contribute to the overall usability.
Conduct research to assess the reputation of various providers. Look for reviews on reliability, customer service, and ease of integration. This information can provide valuable insights and help you make an informed decision. Ensure you choose a reputable gateway that meets your business needs and enhances customer satisfaction.
Once you’ve set up your commercial account, you’re ready to add payment gateway in website. Check what the selected provider offers and decide which applications meet your needs. Then, proceed with the integration:
Make sure you know your customers’ expectations before adding a special code to your website. To get started, ask these questions:
Analyze your project goals alongside your integration financial plan. The e-commerce payment gateway integration varies for each project. This is why you should take the time to create a plan that outlines your core business needs and expectations.
Identify the tools and other resources required to integrate the gateway with your website. When making the decision, consider your platform’s architecture, content management system, and current tech stack. Discuss these details with your tech team and/or web developer to make everything right.
The complexity of your business site has a direct impact on the integration process. Your specialists will incorporate payment APIs and develop custom APIs to connect the systems. They will also develop a payment button for the checkout page. After implementing your gateway, you should monitor the system to ensure it functions properly. Eventually, you may add new or delete old functionalities to meet the changing customers’ needs.
Your business may partner with specialized companies that provide monitoring of the integrated system. They may also facilitate horizontal and vertical scaling to handle larger transaction volumes and enhance the provider’s functionality to meet fast-changing business needs.
In modern realities, your online business can hardly exist without online payment gateway integration. When looking for the right provider, you should consider your sales volume and target audience. Your choice can increase the cash flow, enhance customer satisfaction, and minimize cart abandonment on your website. It’s not hard to make the right decision as long as you prioritize your options carefully. You have a real chance to enhance your company’s success.
