Payment Gateways

Payment gateways platforms can also be used with conventional brick and mortar businesses because they act as an equivalent on a point of sale (POS) terminal. These gateway are designed in a scalable manner to protect credit/debit card details by encrypting sensitive card related information in such a manner that information is securely passed from the client to the merchant and to the payment processor and also vice versa.

To begin with, before accepting an online payment a business requires a merchant account which is basically a special kind of bank that handles any cash received via credit/debit cards. Businesses that are already swiping their client’s card already have merchant accounts. In case your organization would like to process credit/debit cards when the clients are not physically present then they will have to acquire an internet merchant account. There are several internet merchant accounts available online and these only require registration and information validation.

Discount rate. These tend to vary but mainly play in the region of between 2-6%. These are commissions paid to various players (credit card provider, payment gateway, merchant account provider) who are directly involved with various credit/debit card transactions. These costs largely depend with the company that you are dealing with.

Monthly fees. All gateways come with some form of monthly fees and this is largely dependent on the number of features and services provided by the gateway. For instance, there is the fraud detection feature that comes with extra charges. This particular feature is recommended when accepting payments from individuals and businesses that you do not have some long existing relationships with.

Per transaction fees. There is some flat rate charged per each and every transaction completed with a credit card