Roqqett Blog

August 9, 2021
Author: Alexandra Hurst

Online payments 101: Payment Gateway

Everything you need to know about online payments. From payment gateways, to terms and recommendations for your online business.

Quick Summary

  • Who should get one 
  • Why should my business have one?
  • How does it work?
  • The best Payment Gateway on the market. 

Online payments 101: Payment Gateway

Here’s everything you need to know about accepting online payments. 


Online payments are often done via a payment processing getaway as a large amount of work goes on ‘behind the scenes to ensure transactions go through. 


You may have heard of Online payment gateway, payment processors and payment gateway. All similar, but here’s the 101 of a Payment gateway.   


What is a payment gateway?


A payment gateway is an application that processes the transaction between the customer and the merchant. The customer is protected by the encryption of an online payment gateway, and the merchant is safe in the knowledge that the customer is able to pay for the item or service. As the payment has been authorised by the customer’s bank. Payment gateways are most commonly seen on e-commerce websites to facilitate smooth transactions.  


Who is a payment gateway for?

Any online business which accepts online payments. It doesn’t matter on the size, worth or frequency of sales. The rule of thumb is that consumers want to be able to buy your items/services easily and securely. If you have not got an online payment gateway, keep reading as this will prove beneficial for your business.  

Why should I use a payment gateway?

  • Security: Using a payment gateway ensures both you and the customers personal banking details are kept safe. 
  • Standards: Online payment gateways ensure you meet the necessary requirements for safety standards online. 
  • Options: The more payment options you use, the more likely the consumer will follow through with the purchase. As customers want a variety of options, it is argued that by providing consumers with multiple options your business may see a decrease in cart abandonment.
  • Ease: by using a payment gateway, you do not have to use multiple third parties to authenticate transitions on an individual basis. It also allows a better customer experience at the checkout, as customers now expect speedy checkouts. 

 

 

Which online payment gateway should I use?

Read our previous blog on the top three payment gateways here, by clicking here.

In short, Roqqett is recommended by various businesses, sign up to the E-checkout waitlist to experience the following benefits:

Roqqett Benefits: 

  • 93% faster than other checkout methods.
  • No chargebacks, competitors to Roqqett have chargebacks that cut into your profit margins. 
  • A seamless experience: Roqqett remembers the customer’s details, (card numbers, addresses and contact details) which leads to fewer clicks and potential basket abandonment. 
  • Secure: SCA compliant, no need to get a third party to authenticate transactions. Roqqett has bank-grade security.  With face identification to authenticate purchases.
  • Automatic reconciliation of payments and notifications, which ultimately reduces manual overhead and allows automation of back-office processes and logistics.

What are the charges you should expect from using a payment gateway?

  • Flat rate pricing: This means you pay a fixed % per item. For Paypal it’s 2.9% 
  • Interchange plus pricing: This means you pay a fixed fee per item, and an additional amount per transaction. 

Terms that can be confusing when talking about payment gateways 

Alternative Payment Methods (AMPs): mobile payments, e-wallets, ‘buy now and pay later’, bank transfers and financing. Any payment that isn’t by cash or a credit card scheme.

Chargeback: A chargeback or reversal happens when a consumer disputes a transaction. Saying that it is fraudulent or made without their knowledge. In this case the customer is refunded and the merchant loses funds.  

Cross-Border Payments: Payments made between customers and merchants in a country other than the one they are in. For example if Roqqett (Bath, UK) made a payment to Apple Inc (California, US).  

Gateway: The middle man between merchant and customer connecting, authorising and protecting payments. 

Interchange fees: A sum paid by the merchant for the bank processing a payment. 

Micropayment: A payment under £20.00 

A Payment Service provider (PSP): A third party payment system that allows a merchant to accept payments electronically. Connecting the card and financial insulation to the company that issued the card.

 

Key Takeaways 

  • We recommend Roqqett as an online payment gateway. As it is 93% faster than other checkouts.
  • A payment gateway provides a range of benefits for businesses to keep transitions safe and simple.
  • If you sell anything online, you should use a payment gateway.

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