In the realm of online transactions and online shopping, some functions can seem a little bit magical without prior knowledge. Everyone knows how a store works. You have a shop stocked with an inventory of items, and a systematic, organized delivery flow of more items to keep stock fresh and meet customer demand with adequate and appropriate supply.
In turn, customers come in and purchase the items they so choose to bring with them, in exchange for cash, which is entered into the registrar by the cashier for simple bookkeeping purposes and to keep the money safe.
In recent years, electronic advancements and networking inventions have led to the creation of an ultra-secure banking system that works wirelessly. This allows financial institutions to facilitate transactions through officially-issued and certified/accepted credit and debit cards, which are validated and authorized through simple card reading devices that utilize a swipe of a card’s unique magnetic strip and a PIN code as identifiers of the card’s owner and status.
When e-commerce came around and truly began to flourish, things got even more complicated. Now, the exchange of cash was impossible. Likewise, you couldn’t swipe cards anymore. Businesses needed a way to facilitate and validate online business transactions and purchases in a simple, fast and efficient way.
Where Payment Gateways Come In
In comes the payment gateway, which offers the solution. All gateways – no matter whether it’s a premium service or a free online payment gateway – work the same way, by networking with several banks and utilizing the existing banking networks, payment gateways connect their customers – businesses and e-commerce platforms – to several payment solutions including banks and online transaction services. They use encrypted communication and a vast variety of data packaging options to send information from the business to a bank, to kick start a transaction.
Choosing a quality payment gateway, and finding the best payment gateway in India requires an understanding of how they function. Gateways like PayUMoney promise businesses ease-of-use and security, and to remain competitive, these services need to deliver on such promises.
This is especially important in the face of growing cybercrime threats as per We Live Security, making it more important for e-commerce businesses – large and small – to protect their customers’ data with quality and effective gateway solutions.