A brief overview on the various types of Payment Gateways

A brief overview on the various types of Payment Gateways

Since different customers and buyers have different needs, it is not surprising that there are many different types of payment gateways. Depending on you and your customers’ needs, you may find that one type serves its purpose better than the other. 

However, when we talk about the types of payment gateways, we usually distinguish between these three:

1. Manual Payment System

The manual payment system is the oldest system in the entire block. It’s a good option if you’re doing business with people from countries where manual payment is a common payment method and where they may be reluctant to deal with credit cards and/or online payments in general. The manual payment system is normal: Cash on delivery (cash on delivery) Bank Transfers / Direct Deposits Orders by mail. You will receive the information as an encrypted PDF and you can process it on your website. Many systems now support manual payments, although this seems counterintuitive for e-commerce.

2. Non-seamless Payment Gateways

A seamless payment gateway is a form of payment gateway integration where the payment gateway manages all the financial details. The gateway offers payment options and customers are then redirected to their bank’s secure page (if applicable). It’s a good choice if you don’t want to follow any other regulations regarding the retention of financial information, as the payment gateway will handle all of these cases.

3. Seamless Payment Gateways

Unlike non-seamless payment gateway integration, seamless integration means that your customers choose a payment option on your (merchant) page. Good examples of seamless payment gateways include PayPal’s Payflow and SecurePay. PayPal and SecurePay (as well as other lesser-known options) will process payments on your site without taking the customer to another site. This means that payment is faster than non-seamless payment gateways. However, you should check that you have to follow the rules. 

Basic features of payment gateway software 

Here are the key features to consider when choosing payment gateway software for your store:

1. Seamless or non-seamless 

Traditional portals redirect your customer to another website, which can reduce conversions. Modern ones keep the customer on your website, which can be more beneficial for your business.

2. Encryption standards 

Pay special attention to the provided encryption patterns and combinations. You want to minimise all possible risks and ensure that your payment gateway complies with current data encryption standards.

3. Accuracy and speed 

If you are using an e-commerce platform, make sure your payment gateway is compatible. In addition, speed is a big factor, as a slow payment process can lead to customers becoming confused and hesitant to buy from you.

4. Review and report 

Choose the payment gateway that fits your scoring and reporting needs. Each port charges a fee (which depends on multiple transactions, it can be a flat fee or commission per sale) and it’s a good idea to keep an eye on it. In addition, you can also check the number of failed payments. A good payment gateway will help you understand how you can pay for your business at a glance.

5. Protection against fraud 

Other fraud protection protocols are the industry standard, but a good choice is a payment gateway like OnionPay that offers more tools to protect you and your customers, especially if you have a high volume of sales. 

6. Card-not-present transactions

Transactions that are not currently on the card are a major security risk, especially when it comes to online payment processing. In these transactions, neither the credit card nor the person buying the card is physically present, opening up the possibility of fraud. The latest trends in payment gateway software primarily focus on security and convenience aspects, especially with the rise of DDoS attacks and online payments. 

Final Words

If you want to receive online payments seamlessly, payment gateways are the perfect tool for you. With security and speed in mind, more payment gateways means less time spent processing payments and more time, increasing your competitive advantage in an oversaturated market. Payment gateways are beneficial for customers and shoppers because they open up new possibilities for shopping online – securely.

Get more income with OnionPay

If you are looking for the most reliable Indian payment aggregator, OnionPay is the best choice for you. Owned by Zhudao Infotech Private Limited, OnionPay is a PCI DSS Level 1 certified digital payment gateway that offers an excellent payment experience as well as multiple payment options.