Imagine you're just finishing a purchase in your favorite online store. You choose a payment method, enter your details and within seconds, your order is confirmed. The entire process is smooth, but what’s happening behind the scenes? That’s where the payment gateway comes in - the technology that ensures secure and fast processing of online payments. How does it actually work and why is it essential for modern e-commerce?
Payment gateway
A payment gateway is a technology that enables secure and fast processing of online payments.
It is used by e-shops, service providers and other merchants in the online environment to receive payments from customers.
Payments can be accepted through various payment methods – credit and debit cards, digital wallets and others.
How it works
- Payment initiation. The customer selects a product or service in the e-shop and proceeds to the payment page. The customer fills in his card details or chooses an alternative payment method (e.g., Apple Pay, Google Pay, bank transfer).
- Data encryption. The payment gateway encrypts sensitive information and securely sends it for processing. This step protects the customer from data misuse.
- Payment authorization. The payment gateway sends the data to the customer's bank, which verifies if there are sufficient funds in the account. If everything is in order, the transaction is approved.
- Payment confirmation. After successful authorization, the merchant is notified of the payment. The customer is then redirected back to the e-shop and sees the payment confirmation.
- Funds credited to the merchant's account. The customer's bank transfers the funds to the payment gateway's account, which then sends them to the merchant's bank account within the agreed timeframe.
What payment methods does the 24pay payment gateway support?
Card payment
Card payment is one of the fastest and easiest ways to make payments worldwide. The customer enters the card details on the online page, where the system verifies the card's validity and authorizes the payment. Encryption and security protocols, such as 3D Secure, ensure a high level of protection. For card payments on the e-shop, the system may require additional verification (e.g., via SMS code or biometrics).
Apple Pay
This method allows you to pay with a card stored in your smartphone without manually entering your details. It works on Apple devices and, thanks to verification through Face ID, Touch ID, or device passcode, provides a high level of security.
Google Pay
A payment system for Android devices with the same principle as Apple Pay.
Click to Pay
A technology similar to Apple Pay and Google Pay, but not tied to a specific device or operating system. This allows a wide range of users to take advantage of this method.
Bank transfers
This method transfers money directly from the sender's account to the recipient's account via the banking system. Banks verify transactions and protect account data, ensuring a high level of security.
Instant bank transfers or instant payments
They work the same way as traditional bank transfers, but their processing takes only a few seconds. To protect data, they use encryption and other security measures. More information about instant payments can be found in the blog post Instant payments and open banking.
Installment payments
This option allows customers to split the purchase price into several installments, making more expensive products more accessible. You can read more about this new service in the article Installment payments: Increase your revenue with the latest 24pay offering.
Payments via QR code or payment link
The option to send the customer a payment link or QR code for payment, that allows payment without the need of integration into the e-shop. This payment method offers several advantages and is especially useful in various situations, such as:
- If the payment does not go through – for example, due to a low card limit. In this case, the customer will be given the option to repeat the transaction without needing to re-enter the details.
- For quick check-outs – in hotels, accommodation facilities or other services where it is important for the payment to be processed immediately and without unnecessary delay. This service can now be used at the Hotel Dubná Skala**** in Žilina.
- For receiving voluntary donations – for foundations, charitable organizations or e-donations to churches. This donation method makes contributing easier, as it allows people to support a good cause quickly and without complications, even if they do not have cash with them.
SMS payments
A simple payment method where the amount for goods or services is deducted from the credit or added to the mobile operator's invoice after sending an SMS message.
Why is a payment gateway essential for your e-shop?
It offers key benefits that help increase conversions and improve the way your customers shop:
- Security: it protects sensitive data using advanced encryption and security protocols.
- Trustworthiness and professionalism: an e-shop with modern payment methods appears more trustworthy and professional.
- Automation of processes: the payment gateway enables automatic payment processing, saving time and eliminating manual errors.
- Fast and convenient order processing: the payment gateway processes payments instantly, speeding up the purchasing process.
Cashless payments play a key role in modern e-commerce.
A payment gateway ensures secure and efficient processing of online payments. If you operate in the online environment, the right payment gateway will help increase customer satisfaction and support the growth of your business.
Contact us, and we will be happy to assist you with selecting and implementing the payment gateway.