A payment gateway is a software system that acts as a channel between an e-commerce merchant’s website and the bank that processes a buyer’s credit card payment. A payment gateway can also process transactions using methods such as eCheck (ACH) payments and debit cards. The main purpose of the payment gateway is to securely transmit the customer’s private credit/debit card and bank account information to the issuing bank and other parties involved in the transaction.
Payment gateways transmit transaction information to acquiring banks and replies from issuing banks about whether a transaction is approved or declined. In short, payment gateways assist communication between banks.
Security is a main element of all payment gateways as private information such as credit card details need to be sheltered from fraudulent parties. The card associations have stipulated security regulations that must be followed by all entities with access to card information including gateways.
The first and most important thing is to make certain the software is right for your company’s needs. Do not worry about the delivery method and pricing model and concentrate on getting the right solution. Second, you should invest some time to do proper homework on the background of the provider and the features of the product. Otherwise, you may end up paying a high cost if the software proves to be a bad fit.
Another important thing is you should always browse the contract and understand the terms and conditions. SaaS contracts are known for clever phrasing, so make sure you know what you are getting into. Do not get suckered into an evergreen contract. Be certain about the renewal terms as well as the notice time required to cancel the renewal.
You will be surprised to learn the gains you can earn by negotiating intelligently. SaaS software is a competitive market and vendors will be willing to give you a price reduction to earn your business and continue it. Make use of this chance to save some money. Realize that the teaser rate is presented only for a short period. Learn about the total price you need to pay after the initial discount ends. Also, calculate the long-term fee to know what you are getting into.