business payment gateway tips guidesSome years ago, a successful entrepreneurial magazine had an article about successful entrepreneurs. Tenacity, passion, and ambiguity tolerance topped the list of common traits. Understanding vital company systems like payment software and merchant services didn’t get included.

From the list, it seems that highly productive startups don’t have a deep understanding of each single facet of managing an enterprise. What they do have is the knowledge of how to obtain the information needed, and the funds to get that information.

When discussing and exploring payment software, entrepreneurs should stay informed of alternatives spanning payment gateways. Here are some frequent questions asked by entrepreneurs about the ins and outs of payment software and gateways:

What Is a Payment Gateway?

A gateway allows for each payment processing for a company to accept “plastic” in addition to ACH. A gateway is a 3rd party sponsored payment software answer connecting a merchant to the bank’s platform. At the most fundamental level, a payment gateway is a port to a payment processing vendor.

What Other Options Are There?

A disbursing app or direct interface are two options for using a gateway. With a straightforward interface, card transactions are transferred straight from the point-of-sale system to the processor.

What Are the Advantages?

Gateways make it viable to manage payments and not have to fire up all the necessary hardware and security procedures. As a gateway eradicates the requirement to incorporate a processing platform, payment gateways increase convenience to merchants that desire a turn-key answer.

Are There More Options If a Payment Gateway is Used?

Yes, but it varies. Payment gateways give merchants an easier option for connecting to the selected coprocessor without having to come up with their own code. Not every gateway is a fit with every processor — something to consider when finding an answer.

How Does a Direct Port Differ From a Gateway?

A direct interface usually provides a range of built-in and value-added selections, including reporting and buyer services. Direct processing offers more flexibility and features that can be customized. While attractive to many vendors who have complex requirements, it isn’t needed by all vendors. Often, the one-size-fits-all answer is sufficient.

How Do I Know If I Require a Payment Gateway Provider?

It depends on the payment software you use. The software vendor can fill you in on the options, but it’s critical to note that if you are currently utilizing an integrated solution, you may already have a gateway and not know it.

Are Payment Gateways Useful for Online and In-store Transactions?

Yes. Often payment gateways are used for card processing, or used as a virtual terminal with a card reader as well as for card-not-present processing.

The Takeaway

With a full understanding of payment gateways, it’s time to evaluate your choices. Be sure to learn about secure payment technology as well as checkout features, fees, and customer support.

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