How To Create a Payment Gateway for Your Online Store

payment gateway words in tab concept with money coins

Did you know that online stores in 2019 beat general merchandise stores in sales for the first time in history? Online stores are now the fourth largest retail sector in the country.

Shopping online isn't a fad going away anytime soon. If you want to open an online business, you'll need to know how to create a payment gateway. 

Keep reading our guide below to find out what that is and how to add one to your website.

Understanding Payment Gateways for Online Stores

What's the difference between a payment gateway and a payment processor?

A payment gateway facilitates credit card payments by creating a secure, encrypted connection between your website and a credit processing company. 

The company actually handling the transactions for your online store is called the payment processors. 

Having a payment processor is enough to simply process payments online, but you'll need a payment gateway if you want to accept cards at a point-of-sale or virtual terminal.

Need To Learn How To Create a Payment Gateway?

Your first step in setting up a payment gateway is to decide what kind of transactions you'll want:

  • Authorization: Determining if the customer has enough money in their account
  • Capture: Capture the authorized money and transfer after shipping
  • Sale: The authorization and capture happens immediately
  • Refund: Giving your customers their money back 
  • Void: When a transaction is canceled for whatever reason

You can select specific types or incorporate them all. Next, you'll want to decide on a hosted platform like PayPal or a non-hosted one that can be integrated onto your site. 

Using a non-hosted one is more difficult because you're in charge of security, compliance, and storing your customers' credit card numbers. 

Businesses do have the option of building a custom system but it could cost $150,000 or more to start.

Tips for Payment Gateway Integration

If you're ready to set up a payment gateway for eCommerce on your website, read up on some of the latest approaches to integrated payments.

In general, you'll need to check on what's available in your region when adding your online store payment gateway. You don't want to be stuck with something that isn't supported.

Be sure to ask about transaction fees because this could affect your bottom line. And double-check that potential gateways accept multiple forms of payment. 

Are you interested in offering subscription-based services? Ask vendors about the options available for recurring payments.

Most important is security. Find out if the gateway has a Payment Card Industry Data Security Standard (PCI DSS) system. This is one of the most trusted worldwide.

Complete Your Online Store Now

Online shopping is more popular than ever and running a successful business means you need to know how to create a payment gateway. 

Use some of the tips and information we provided above to set up the right payment gateway for your business. 

And check out the rest of our website for some of the best advice on how to do everything. From repairing cars to managing a business, we cover it all. 

 

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