An Ultimate Guide to Payment Gateways In Pakistan!

Ultimate Guide to Payment Gateways

An online payment gateway is a process of sending transaction data from the vendor to the bank by relying on electronic means. With an increase in the amount of data being produced on a daily basis, security concerns have also been increased to a great extent. The user of a credit card would never want his details to get exposed in front of a third party. Therefore, users now prefer to depend on a payment gateway through which they can make safe transactions. Before using a payment gateway, one must find out whether or not it is a secure way of making a payment. As technology continues to grow, hackers also start to use more sophisticated and smart techniques to breach confidential data. The security standards keep on changing therefore, one has to be aware of the latest trends.

If you have no idea about payment gateways and the technicalities involved, here is a complete guide about how it works:

Merchant Account: 

The business that you are dealing with and who is willing to accept online payments is referred to as the merchant. If you want to have a transaction with your merchant, make sure you have your business account in the same bank as that of your merchant. There are certain requirements of every bank when you plan to open a business account but most of the time they will ask you for CNIC, NTN, and AOP.

Ultimate Guide to Payment Gateways

Merchant Discount Rate (MDR): 

MDR is basically the amount that is charged to a merchant by the payment gateway provider on every transaction. This is basically the amount that goes to the bank on each transaction and it is normally a certain percentage of the actual amount. For instance, if you are paying rs.100, rs.1 will be deducted by the bank and the rest of the amount will be transferred.

Settlement Period: 

The money transferred by you is not transferred at that very moment and time is taken in order to avoid any sort of fraud activity. The payment gateway provider takes time to transfer money into the merchant’s account in order to ensure that no other negative activity is a part of that process.

Benefits of payment gateway: 

The payment gateway has some important benefits which make it quite an attractive approach for customers across the world. Some important benefits of payment gateway are:

• It enables safe and secure transactions
• It is a faster technique of making payments
• It is relatively easier to use
• Payment gateways also help companies expand their client base to a great extent.

Things to consider while choosing a gateway:

Before going for a payment gateway, there are certain things that one must keep in the mind. Choosing the right payment gateway is important as it helps you achieve desired results.

• Security is an important factor to keep in mind while choosing a payment gateway. Make sure that the gateway you are choosing is quite secure.
• Compare different payment gateways and choose the one that suits your budget
• Identify the compatibility of a payment gateway with your current platform while deciding for a gateway.

What makes payment gateway important for an online business?

There is no doubt that the payment gateway is of great significance in online business. Payment gateways help the customers avoid obnoxious credit card frauds and also enable them to make payments much faster. Through payment gateways, it is ensured that the data provided by the customer is safe and is not used for any illegal activities. Payment gateways also save the time and energy of both the customers as well as vendors. Online payment gateways also enable the customer to make purchases from the website of the seller easily.

Important factors to look for in a payment gateway:

There are some important factors in a payment gateway that one must pay close attention to. Some important factors have been mentioned below.

• Modern or old:

This needs to be ensured that whether the payment gateway is modern or old. Keep your requirements in view and then decide whether you can rely on an old payment gateway or you only need a modern one.

• Encryption standards:

One should be completely aware of the encryption standards of a payment gateway so that you can feel safe while using it.

• Speed:

Speed is another important factor one should pay attention to. Again, the user has to keep his requirements under consideration to make a decision.

Characteristics of an ideal online payment gateway:

We have different payment gateways but some are definitely better than the rest. Below are the characteristics of an ideal online payment gateway:

• A good payment gateway should be easily accessible.
• A good payment gateway should be fast and should make all the payments smoothly and without any interruptions.
• Transparency is a vital characteristic of an online payment gateway.
• The data of the customer should remain safe.

Ultimate Guide to Payment Gateways