What is a Payment Gateway
A payment gateway is a messenger – the transmitter of the communication between a purchaser’s payment method, and the merchant account.
The payment gateway is a software solution that transfers pertinent transaction information in order to facilitate purchases. The software also contains encryption technology, which obscures this sensitive information and keeps buyer and merchant data safe and secure.
Payment gateways also often offer fraud prevention and protection, reconciliation, and reporting services to merchants.
Role of Payment Gateways in eCommerce
Online stores aren’t the only ones receiving payments through web portals – these days, businesses like restaurants, cinemas, and service providers are taking online pre- and post-payments, requiring credit card processing and the ability to receive payments via services such as eWallets.
Payment gateways enable merchants of all types to receive payments from their customers. Restaurants who offer curbside pickup or takeaways, cinemas who give people an opportunity to book their seat in advance, and utility companies who send electronic invoices to their customers are all using payment gateways.
Integrations (what they mean, common integrations)
There are a couple of different types of payment gateway integrations you should know about:
This is an integration which sends your customer to a third party web page to complete their transaction. This is an easy integration option which doesn’t require PCI compliance, and relies upon the third party to externally store and transmit customer data. Some customers may not trust a third party site and in some cases, this may cost you some business.
Non-hosted (Integrated) Gateway
This type of payment gateway is integrated using API’s directly onto your website. You will have full control over all stages of this interaction with the client, and can customize the payment system to suit your business needs. This option has the best user experience, but requires a technical person to integrate. Businesses must also obtain PCI compliance before using this type of integration method.
When to Choose a PSP and when a PG
Generally speaking, businesses with a higher sales volume and larger infrastructure choose a payment gateway to suit their needs.
Small to medium businesses who wish to have their payment processing, security, reporting, and settlement services handled in one place will prefer the ease and support of a PSP (payment service provider).
DPO & DPO Paygate
DPO is the leading provider of payment processing services in Africa.
As a PSP, DPO is used by merchants throughout the continent, providing a full service solution for payment processing, reporting, fraud detection and protection, and more.
DPO is also a leading payment gateway provider. Through DPO Paygate, payment gateway services are available throughout the southern part of the continent.