In This Episode: What, Why and How
Online Payment Gateway
First, we need to make clear what an online payment gateway is. In simple terms, an online payment gateway is a secure environment connected to a store that allows it to accept cashless payments.
An online payment gateway does more than provide a technically secure way to process payments. These systems are also audited by independent parties to confirm that servers are secure, access permissions are controlled, and other safeguards are in place.
Implementing this can cost thousands or even millions of dollars, before considering additional obligations. In other words, independently managing payment security as a small business owner is practically impossible.
This is exactly why companies such as EVO Payments offer the relevant services. You have probably also heard of Stripe, which operates in the same field. The question then becomes how to add e-commerce payments to your online store. The complexity depends on which platform and payment gateway you use.
PayPal, for example, is a relatively simple option and supports features such as automatic subscription payments. However, your account may need to be verified by a PayPal employee, which is not always convenient.
For that reason, it is better to choose carefully. The right option depends on the scale and type of your business, whether you need individualized links, and whether you also need in-store payment services.
After choosing a provider, it must be integrated with your platform. Some store systems, or e-commerce software, include preinstalled payment gateways or offer simple integration. EVO Payments, for example, is integrated into the Plesk e-commerce toolkit, so no separate installation is needed; you simply activate it, and there is no monthly fee.
Key Insights
- Online payment gateways allow stores to accept cashless payments, whether in-store or online. They are especially important for e-commerce stores because this is the primary way such businesses receive payments.
- People usually associate cashless payments with credit cards, but they can also include account-based payments such as ACH/direct deposits and digital wallets such as Apple Pay and Google Pay.
- Online payment gateways provide a secure environment for e-commerce stores to receive payments. Payment and customer information is stored within this protected environment so orders and transactions can be processed and managed.
- This helps prevent attacks such as the theft of credit-card information during a transaction.
- These gateways are governed by strict guidelines and standards, including PCI compliance, to ensure information security and integrity. They are audited not only for technical implementation; access to the underlying servers is also limited to authorized personnel. Maintaining this level of control requires significant resources.
- An SSL certificate should also be installed on your website. It is not enough for the payment gateway alone to secure payment methods; the rest of your website and information should be protected as well.
- In this episode, Dirk discusses several types of payment participants and systems: payment service providers (PSPs), payment methods, acquirers and wallets.
- PSPs are leading companies that take on risk and work with different payment methods. These methods usually work with an acquirer, typically a bank that works with credit-card companies. A wallet is a special payment method that holds funds, unlike a traditional credit card.
- Offering customers several payment options is useful, but it is also possible to offer too many. In general, a credit-card form and a digital wallet are a good starting point.
- When choosing a PSP, you need to determine which payment methods you require. This may depend on the country where you operate as well as many other variables.
- For example, if you need to accept payments directly in a physical store, a PSP that offers only online services will not be sufficient. Likewise, if PayPal does not operate in your country, you should not offer it to customers.
- EVO Payments is a global company operating in several countries and offering customers a broad selection of payment methods. It is integrated with the Plesk e-commerce toolkit so Plesk customers running e-commerce stores can begin accepting payments quickly, regardless of where they are located.
- A major advantage of EVO Payments on Plesk is the price: it is considerably cheaper than some other gateways, such as PayPal, and Plesk users do not have to pay a monthly fee to use it.