This is the era of online businesses. We buy and sell all kinds of good online. In fact today we all have access, and that too instant access, to a vast online marketplace; this has revolutionized the way business is done. It benefits both buyers as well as sellers. Businesses find it easy to reach across to a wide range of customers spread out in different places.
Doing businesses online is convenient. At the same time, it has its own risks as well. There are all kinds of scams and frauds; cybercriminals are on the prowl and try to steal personal data of customers as well as money from their bank accounts or credit cards. It’s in this context that an online payment gateway or virtual terminal gains relevance. This helps minimize risks and carry out transactions and business activities very safely.
Online Payment Gateway/Virtual Terminal- An Introduction
An Online Payment Gateway or Virtual Terminal is used to process transactions- card based ones and ACH (Automated Clearing House) transactions- online, from any computer that has internet access. Thus the merchant is able to securely handle the different aspects of transactions- verification, reporting and processing.
Benefits of Having an Online Payment Gateway
There are many benefits of having an online payment gateway. Let’s examine the prominent benefits-
- The biggest benefit is that it ensures proper encryption of customers’ personal data- his credit card information or bank account related information.
- Another major advantage is that having the online payment gateway ensures automatic PCI compliance. (Today almost all online business prefer PCI compliance and going for PCI SAQ, as security is of paramount importance for entrepreneurs as well as customers)
- Processing payment over an online payment gateway helps business owners reach their target market in a better way.
Using online payment gateway helps businesses keep track of all their activities and also of their regular customers.
- A great advantage of going for online payment gateway is that there are lesser charge backs as all transactions are being verified.