Introduction To Payment Gateways - ZED Network
  • Published On: October 10, 2020
  • Published By: Shovon Joarder
  • Category: Payments

Payment gateways are what keeps the online economy ticking. It ensures the digital ecosystem keeps rolling smoothly by allowing customers and businesses to make online payments. Now, if you have an online business, then odds are you are somewhat familiar with the idea of payment gateways. 

You don’t need to be an expert on payment gateways to run a successful business, but you should know the basics. Knowing the basics of how money flows from your customer into your business will ensure you provide the best service. 

Zed was founded by Alan Safahi who has 30 years of experience working with tech and financial startups and with him at the helm we’ve been able to provide comprehensive payment orchestration services. ZED Network provides simple payment gateway solutions for online businesses, which puts us in an excellent position to talk about what they are. Here today, we will give you an introduction to what payment gateways are for online businesses. 

This introductory article will find the payment gateway definition, understand what a payment gateway is, and how it works. However, there are other things you should know about before we go into the main discussion; let’s talk about the parties involved in the transactions. 

  1. The Business/Merchant: So this is who you are to your customers. Whether you provide travel, retail, eCommerce, gaming, Forex, or other services, you will be known as the business in the transaction because the money comes to you.
  1. Customer/Cardholder: Your customers are the ones who want to buy your product or take up your services and are willing to pay for them. 
  1. The Issuing Bank: This term refers to the customer’s credit or debit card issuing bank on behalf of car schemes like Mastercard, AMEX, Visa, ETC. 
  1. The Acquiring Bank: Now, this is your bank or the bank that handles your business account. This is the bank that the issuing bank with the information to complete the transaction between your customer and your business.

Now that you know all the players involved in the transaction when using a payment gateway, it’s time to get on with our discussion. So let’s start with the “What” and then slowly make our way down to the other parts.

What Is A Payment Gateway

The basic definition of a payment gateway is that it’s a technology that takes in and transfers the payment data from the customer to the acquiring bank. Once that data is transferred, the payment gateway receives information from the bank about the transaction and lets the customer know if it was accepted or declined.

What Is A Payment Gateway - ZED Network

The primary purpose of a payment gateway is to validate customer’s card details securely and ensure that they are there for the transaction to go through. So it’s the interface between the website and the acquirer. Because the payment gateways are dealing with sensitive data like credit card information, there needs to be an added security level. 

Most of the payment gateways available have top-end encryption that ensures information can pass through without any risk. Now that you know what a payment gateway is, let’s talk about whether you need a payment gateway. 

Why Do You Need A Payment Gateway?

So when you see that the payment gateway acts as a middleman, you can quickly conclude that you may not need one for your business. Since you run an operation online, most of your customers will come from different locations, unlike a brick-and-mortar shop. 

Zed Founder and entrepreneur Alan Safahi, “You can’t go providing all of your customers with a personal POS terminal now, can you? That’s the reason you need a payment gateway. Because you cannot use a POS terminal to get your client’s card information.” Now, card fraud is a considerable risk for you and your customer in “card not present” transactions, and that’s where the magic of payment gateways happens. 

As a business, you have to be ready to take in card information on the payment page and provide ample protection for your customers and protect your business from fraud. Payment gateways can offer the protection you and your customers need from fraud and chargebacks. 

These gateways also protect from fraudsters initiating illegitimate transactions that can be devastating to your business and brand’s reputation. That’s why payment gateways work as a gatekeeper to customer card data.

Along with protection from fraud, payment gateways also ensures that your business is protected from expired cards, insufficient funds, closed accounts, and exceeding credit limits. You see, these are the wonders of payment gateways, and now we will talk about how it works, so let’s begin. 

How Do Payment Gateways Work?

Now that you know what payment gateways are and why you need them, let’s talk about how they work and precisely how the transaction process is carried out. 

Knowing the process will help you understand the payment gateway solutions out globally and ensure you choose the perfect one for your website. Before we go through the process itself, let’s first discuss a few features that the best payment gateways have. 

  1. The best payment gateways usually have a hosted payment page.
  1. Best payment gateways also have a server-to-server integration, meaning more accessible and better communication and fewer red flag chances when a transaction is happening.
  1. Client-side integration is a sign of the best-in-class payment gateways. It offers encryption-at-source, meaning it encrypts sensitive information on the client-side device.

That covers the information you need to know about what makes a payment gateway best in the business. So now, let’s go through the payment process:

Find The Perfect Payment Gateway Solutions

So there you go, that’s our way to introduce you to payment gateways. Here we covered what a payment gateway is and why you need it and how it works to ensure secure payment.

Perfect Payment Gateway Solutions - ZED Network

Now you may not be able to integrate a payment gateway into your website, but that’s where we come in. We here at ZED Network help businesses with payment integration and other payment solutions to ensure our clients can take their business to the next level. 

So if you have any other questions regarding payment gateways, then feel free to contact us. We will gladly help you out. Until then, see you!

44 Responses

  1. After study just a few of the weblog posts in your web site now, and I really like your manner of blogging. I bookmarked it to my bookmark website listing and can be checking back soon. Pls take a look at my website as effectively and let me know what you think.

  2. Hmm it appears like your site ate my first comment (it was super long) so I guess I’ll just sum it up what I submitted and say, I’m thoroughly enjoying your blog. I too am an aspiring blog writer but I’m still new to the whole thing. Do you have any tips and hints for novice blog writers? I’d genuinely appreciate it.

  3. For newest information you have to go to see world wide web and on web I found this web page as a best web site for hottest updates. Alikee Tedd Halsy

  4. You made some decent points there. I looked on the internet for the subject and found most guys will go along with with your blog. Margalit Malcolm Berners

  5. Amazing blog! Is your theme custom made or did you download it from somewhere? A theme like yours with a few simple adjustements would really make my blog jump out. Please let me know where you got your design. Cheers Laney Grantley Theran

  6. Have you ever considered about including a little bit more than just your articles? I mean, what you say is fundamental and all. However think of if you added some great photos or video clips to give your posts more, “pop”! Your content is excellent but with pics and videos, this blog could certainly be one of the greatest in its niche. Excellent blog!

  7. Wow, wonderful blog layout! How long have you ever been blogging for? you make blogging glance easy. The full look of your site is wonderful, let alone the content material!

  8. Hey there would you mind stating which blog platform you’re using? I’m going to start my own blog soon but I’m having a hard time selecting between BlogEngine/Wordpress/B2evolution and Drupal. The reason I ask is because your design and style seems different then most blogs and I’m looking for something completely unique. P.S Apologies for getting off-topic but I had to ask!

  9. After checking out a handful of the articles on your web site, I honestly like your technique of blogging. I book-marked it to my bookmark webpage list and will be checking back in the near future. Please visit my website too and tell me what you think. Lee Gareth Jakoba

  10. Today, with the fast life-style that everyone leads, credit cards have a big demand in the economy. Persons coming from every area of life are using the credit card and people who not using the card have lined up to apply for one in particular. Thanks for discussing your ideas on credit cards.

  11. I blog frequently and I seriously appreciate your information. The article has really peaked my interest. I am going to book mark your site and keep checking for new information about once per week. I subscribed to your RSS feed too. Jan Glen Fallon

  12. I have been exploring for a little bit for any high quality articles or blog posts on this sort of area . Exploring in Yahoo I finally stumbled upon this web site. Studying this information So i am glad to exhibit that I have an incredibly good uncanny feeling I came upon exactly what I needed. I such a lot indisputably will make sure to do not disregard this site and provides it a look regularly. Ayn Sanson Dwan

  13. Hello there, I discovered your blog by the use of Google at the same time as searching for a similar matter, your web site came up, it seems great. I have bookmarked it in my google bookmarks. Guinevere Newton Elsy

  14. Thank you for sharing your info. I really appreciate your efforts and I am
    waiting for your next write ups thank you once again.

  15. Pretty great post. I simply stumbled upon your weblog and wished
    to say that I’ve truly loved browsing your weblog
    posts. After all I’ll be subscribing to your feed and I’m hoping you write again very soon!

  16. I think the admin of this website is truly working hard for
    his web page, because here every stuff is quality based data.

  17. I am often to blogging and i really appreciate your content. The article has really peaks my interest. I am going to bookmark your site and keep checking for new information.

  18. There is certainly a great deal to find out about this subject. I like all the points you have made.

  19. I quite like reading an article that will make people think. Also, thank you for permitting me to comment!

Leave a Reply

Your email address will not be published. Required fields are marked *