Payment gateways allow businesses to take credit and debit card payments from customers.
The gateway verifies the card details securely and passes this encrypted data between the customer, merchant and the acquiring bank.
A payment gateway also provides other services including reconciliation reports (matching settled funds), API and integrations.
Payment service provider - PSPs help businesses get paid via various services. This can include a merchant account and a payment gateway which helps you manage your payments.
Merchant account - accepted payments are held here temporarily before being deposited in your personal bank account.
Acquiring bank - the merchant's bank which allows the merchants to accept digital payments.
Issuing bank - the cardholder or consumer's bank
A payment gateway acts in a similar way to physical point-of-sale devices in stores. However there are many more risks involved in online transactions. For example, how do you know whether the customer is actually using their own card?
In order to minimise fraud and give businesses the peace of mind, a payment gateway acts as a gatekeeper of customers' payment information.
While the two may seem similar, they carry out different parts of the transaction. The payment gateway is the customer facing portion that collects the customers' payment details. The gateway then transfers this information securely to a payment processor which facilitates the movement of money.
A payment gateway collects the customer's card data and transaction details, transfers it to the payment processor and informs both you (the merchant) and the customer whether the transaction has been approved or declined.
When a customer submits their card details at the checkout on your business website or checkout provided by the payment gateway, the following steps take place:
As you can see, the payment process is highly complex with multiple parties involved. This not only increases your fees, but results in a process that is not always transparent.
On the other hand, since only Roqqett and our Open Banking provider are involved in the transaction, the fees you pay are significantly lower.
As well as that, holding times may interrupt cash flow in your business. But because Roqqett facilitates transfers directly between customers' bank to your business' bank, you receive your money instantly.
Strong Customer Authentication (SCA), which is coming into effect in March 2022 for e-commerce stores, requires that customers confirm their identity using either a pin, a mobile device or biometrics.
Roqqett is built on Open Banking so customers will already pre-authorise payments securely through their banking app with biometrics or other methods. This means that the risk of fraud is minimised, helping you, the merchant, to focus on other parts of the business.
By enabling payments through a mobile banking app, Roqqett is already SCA compliant - ensuring both you and your customers have a smooth checkout experience.