How To Start Payment Gateway Business
Nowadays, the world has become quite technology savvy. Whether we want to eat something or have to purchase any cloth, gadgets, etc. everything has now done at just one click. But do you know how you are able to shop online so easily? Well, this is what we call Payment Gateway Service. If you have noticed, while paying the bill or making any recharges when you click on the option pay now, you are, then, direct to a new page. If you looking for a How to Start Payment Gateway Business than contact us for further process.
This page is known as the payment gateway site of that particular website on which you are going to make a transaction for any goods or services purchased. Therefore, if you find it interesting and wish to start your own payment gateway business, read the blog until the end. We have provided all the elementary details required for starting such services.
What is Payment Gateway Service?
Payment Gateway Service is a financial service that is rendered through an e-commerce platform. A payment gateway is a merchant service provided by an e-commerce application service provider that authorizes credit card or direct payments processing for e-businesses, online retailers, bricks and clicks, or traditional brick and mortar.The payment gateway acts as an intermediary between the banks as well as the website that facilitates the communication of transaction details.
Besides, it generates the details from the buyer bank and supplies the info to the receiving bank. Furthermore, it notes the feedback of the merchant bank so as to verify whether the transaction has approved or declined.
How Does a Payment Gateway Work?
Ultimately, payment gateways facilitate communication between your website or brick and mortar store, the payment processor and the bank. That issued the credit card being use to complete the purchase. Security is a major component of all payment gateways. Therefore, every transaction that occurs between the merchant and the issuing bank has encrypted to protect sensitive financial information.
Although the transaction process takes only a few seconds, several steps are accomplish during that brief window of time. Once the customer is prompt to a secure payment page and places an order. The transaction data (credit card number, CCV2 information, etc.) has encrypted and sent to your payment processor through the gateway.
The payment processor communicates with the credit card’s issuing bank and retrieves feedback in a form of an approval or a declined message. The response is then transmit to the payment gateway, which communicates it to your website. Finally, the information is interpreted and an appropriate response is generated. If the transaction was approved, the merchant fills the order.
Steps of How To Start Payment Gateway Business
Here some A Step-by-Step guide how to start payment gateway business. That you can take to help develop your business idea.
Research Your Industry and Market: Do market research, which should include an analysis of how many retail businesses are in your area. Research what competitors are offering and how much they are charging.
Create a Business Plan: Plan out how you will operate your business, what services you will offer and how much you will charge for them. Plan out how large your sales force will be and how they will be compensate.
Partner With a Bank: You must have a Visa/MasterCard bank to underwrite your transactions and handle the interbank routing. You can do this by contacting banks in your area or that serve your preferred market directly, meeting with the bank management. And showing them a business plan including how merchant payment services will help them cement relationships with the small-business community.
Hire a Sales Team: These people will be responsible for calling on business owners and soliciting their business. Most are paid on commission or on a salary base plus a commission and work as independent contractors.
First Goes Acquiring Partnership
Consequently, if you already have a signed contract with an acquiring bank (again, not an ordinary commercial bank). Then you only need to obtain the respective specification in order to start implementing a payment gateway solution. However, if you do not have an acquiring partnership yet. Then the first thing you have to do is find an acquirer.
In order to be able to work as a payment gateway provider in your own right (or introduce a new gateway service), you need to have an acquiring bank and a technical specification from this bank, indicating that you are authorized to provide your target services
How To Start Payment Gateway Business With eSecurePay
Being able to accept online payments is the only way for an eCommerce business to grow and expand its earning potential. At the same time, it’s important to understand that having the right mix of payment gateways on your store can also play a major role in generating revenue. Not having the right payment gateways available will most likely lead to cart abandonment and lost sales.
eSecurePay is a popular payment gateway that customers recognize and trust, but you should also consider adding additional gateways. That are less known internationally but are tailored to your target markets and countries.