Even in the simplest of forms, a payment gateway will allow any business to process and accept payments from customers easily and quickly at any point in time. A payment gateway will need to ensure that there is smooth processing which ensures that customer information and funds are secured.
There are multiple types of companies that could benefit from establishing a payment gateway for their customers:
- Better front-end technology for acquiring banks
- Software businesses that want to expand their company by becoming a payment service provider
- Payment service providers need more robust and full-featured payment processing solutions
- Firms looking to replace aging and difficult-to-maintain legacy billing solutions
A business would be able to do the following with a dedicated payment gateway:
- Provide others with services. When you create your payment gateway, you can offer payment processing services to other companies. Your license does not restrict you from serving anyone.
- Save money on fees. Fees for transactions and signup costs associated with outside gateways take away a portion of your potential profit. The transaction processing cost may be reduced if you have your gateway.
- You can choose the features you want. There are limitations to every piece of gateway software created by someone else. It is possible that the gateway you like cannot handle multi-currency transactions or recurring payments. You might need add-on modules to get the features you need. You can create the features you need when you build your payment gateway.
When it comes to building a custom payment gateway solution, instead of using one that has been developed by another company, there may be some downsides that are not excepted which could include but are not limited to:
- The process of integrating and certifying is complicated. Along with the high costs associated with integration and certification, the process is time-consuming and complex. You pay a licensing fee for the convenience and speed of using an existing payment gateway, but it eliminates many complexities and costs.
- There are substantial costs associated with building. Up-front costs are involved with building a gateway and regular maintenance fees. The initial costs associated with setting up your payment gateway are much higher than those associated with choosing an external payment gateway that meets your needs.
- The process of building takes time. Choosing a white-label payment gateway or open-source payment gateway software is the fastest way to set up a solution in weeks rather than months or years.
What Are The Steps That Need To Be Taken To Set Up A Dedicated Payment Gateway Solution?
When the terms payment gateway and payment gateway software are used, then it can be done interchangeably throughout this post. When it comes to developing a dedicated payment gateway solution, it is more than just purchasing payment gateway software to create a payment gateway solution. The only way that it can be ensured to be successful is to have all of the pieces in the right place at the right time.
If a business wants to have a payment gateway service to be successful or to be a successful payment service provider, then there are seven pieces to the payment gateway solution that must be in place:
- Acquirer contracts. Suppose you choose not to use an existing gateway. In that case, you will also need to provide proof of financial liability, financial statements, and other documents, which can take months or years.
- Compliant with PCI standards. Payment facilitators must undergo a rigorous and expensive PCI compliance audit to comply with Payment Card Industry standards. It is essential to have a secure server.
- Fraud protection for consumers and merchants. Fraud prevention involves more than just PCI compliance, ensuring your business’s security, and maintaining relationships with consumers and merchants.
- Funding strategy for merchants. Your merchants receive the money you collected for them minus fees through your payment gateway in most cases.
- The actual process of processing transactions. Transactions are handled through your preferred gateway. Look for payment gateway software that integrates with the acquirers that matter most to you.
- Management of customer relationships. To keep your complicated business under control, you’ll need a CRM system for managing client information. In addition to establishing procedures for new clients, you will also need to establish procedures for existing clients.
- Verification of merchant background. Your company must check the merchant’s credit history and perform additional verifications to ensure the merchant will not bring with it an undesirable level of risk and will have enough transactions to be profitable.
If more information is needed, then on our blog are multiple detailed explanations of concepts for payment gateway solutions and processing industry concepts, which also include building a dedicated payment gateway solution for businesses.
If you are interested in even more technology-related articles and information from us here at Bit Rebels, then we have a lot to choose from.