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February 24, 2022

All you need to know about Payment Gateway – A Quick Guide!

The payments industry is flourishing, and some new payment gateways are making the process of online payments more efficient. This guide will help you understand the various types of payment gateway available in the market and how to choose the best one for your business.

A payment gateway is a service provider that enables BFSIs to accept payments from customers on their websites or mobile applications by connecting them with banks and other financial institutions. Companies can use a payment gateway to process credit card transactions, debit card transactions, ACH (Automated Clearing House) transactions, wire transfers or other electronic funds transfer transactions.

Different Types of Payment Gateway

Hosted payment gateway

Payment gateway directs your customers away from your site’s checkout page using hosted payment gateways. The customer is sent to the Payment Service Provider (PSP) website after clicking the gateway link. The customer provides his or her payment information here and then the payment gateway sends customers back to the website to finish the checkout process. This process is customizable, secure & simple. But because the gateway is external, the BFSI can’t control the complete user experience.

Self-hosted payment gateway

With this type of gateway, payment details are collected from the customer within the BFSI’s website. The collected data is delivered to the payment gateway’s URL after the details are requested. Payment data must be submitted in a specified format for some gateways, while others require a hash key or secret key. While it provides a great customer experience and a customizable flow, it doesn’t have a specific technical support system.

API hosted payment gateway

With API-hosted payment gateways, customers enter their credit or debit card information directly on the BFSI’s checkout page and payment gateways process the payments using an API (Application Programming Interface) or HTTPS queries. This gateway is also customizable and as its name suggests, its capable of integration. The only con here is the security. The BFSIs need to be aware and on top of PCI DSS compliance and must purchase an SSL certificate.

Local bank integration

Customers are redirected to the payment gateway’s website (the bank’s website) by local bank integration gateways, where they enter their payment and contact information. The customer is sent back to the BFSI website after making the payment, and payment notification data is supplied with the redirection. It has a quick and easy setup process, but it only offers basic features when compared to its alternatives.

Benefits of Using an Online Payment Gateway in BFSI

Convenience

Customers can pay for their insurance/mutual funds at any time and from any location. One of the most prominent advantages of an online payment gateway is that it makes electronic payments  more convenient and simpler . Furthermore, there is no time constraint inside the day, as there is in physical businesses.

Increased consumer base

The payment platform enables retailers to connect with everyone, which would be difficult at a physical location. It enhances the BFSI’s overall collection process at any moment.

Payment confirmation

Financial Institutions have complete control over their operations since the data centre sends payment confirmations to BFSIs every time a customer completes the transaction. The BFSIs will then determine what to do next.

Security & Control

Several platforms meet PCI DSS security requirements. It leads to secure transactions, as well as customers/investors’ trust in BFSIs and their objectives.

Additionally, businesses also have complete control over all payment procedures as well as all purchase data. It enables BFSIs to respond to unexpected developments or challenges that may arise.

Recurring billing

Customer can make Payments with a single click, and BFSI customers have multiple options for recurring payments and other solutions to make payment procedures more convenient and faster. It all relies on the requirements of the shopper.

Faster transaction

The major advantages of using a payment gateway is that all transactions are faster and more convenient than manual processing. It not only saves time for both retailers and customers but also provides convenience.

Why CAMSPay?

Card-Based Transactions

CAMSPay accepts all major debit and credit cards, including RuPay, Visa, Mastercard, and American Express. Additionally, we’ve also established relationships with the major acquiring banks to conduct transactions as quickly as feasible. With our Insta Checkout, your customer won’t have to type in his credit card information every time. He can just keep the information so that we may utilize it for future transactions. We securely keep the Card information as tokens, and we’ve implemented PCI DSS-compliant multi-layer security.

UPI

UPI has several benefits, including single-click authentication and no need to store or remember any sensitive information, freedom from carrying cash, quick collection of payments from clients, real-time funds settlement, and so on, all of which reduce friction in the payment process and lead to higher success rates. We at CAMSPay make it possible for your business to accept UPI payments using popular apps such as GPay, PhonePe, BHIM, and more than 100 other UPI-enabled apps.

Net Banking Transactions

We have collaborated with more than 50+ banks which will ensure maximum coverage of transactions and hence cater to your net banking needs too. We have optimized your payment experience by making it secure and seamless.

Stay tuned for our next blog post to understand how you can easily integrate a payment gateway for your financial business.

Interested? Visit CAMSPay to know more

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