You don’t want your customers to feel confused while paying online with their credit or debit cards. To do that, you need a secure and user-friendly payment gateway on your website that simplifies the payment process for them.
But how to integrate a payment gateway into a website? That’s what this article will throw light on. Let’s start.
Flow of payment processing
Understanding the behind-the-scenes mechanics of online payment processing can give you a clearer picture of how transactions are handled securely and efficiently. The payment processing flow consists of various steps.
Step 1: Customer initiation and data encryption.
When a customer makes the purchase on your website and enters their payment details (card number, expiration date and CVV), the data is encrypted and forwarded to the merchant’s web server via a secure SSL connection.
Step 2: Merchant and payment gateway.
The merchant forwards it to the payment gateway through another secure channel. The payment gateway stores this transaction information in a tokenised form. That means the actual credit card numbers are converted into other numbers.
Step 3: Payment processor and card network.
The payment gateway directs the transaction towards the payment processor. Payment processor is a third-party company that handles payment processing services. It transfers the data to the respective card network which verifies the data.
Step 4: Issuer bank and authorisation.
The issuer bank, which holds the customer’s account, receives the authorisation request. It either approves or denies the transaction based on the available funds, account status and other security checks. It sends the respective response to the payment processor.
Step 5: Customer notification.
The payment gateway receives the code and displays the information on the website in the form of success or failure.
Step 6: Fund transfer.
Within a couple of days, the issuer bank transfers the funds to the acquiring bank, completing the transaction.
All this process occurs within seconds.
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Types of payment gateways available for integration
A payment gateway is a software application that facilitates the transfer of payment information from a customer to a merchant account’s bank account. It acts like a digital equivalent of a point-of-sale (POS) terminal found in physical stores, encrypting and transmitting the payment details of your customers.
There are 3 main types of payment gateways that can be integrated into your website.
- Offsite or hosted gateway: This gateway redirects customers to a third-party payment processor’s website to complete the transaction process. The payment processor handles the entire translation process.
- On-site gateway: This payment gateway keeps the entire transaction process on the merchant’s/business’s website. This allows for a seamless experience.
- Integrated gateway: This gateway involves directly integrating the payment processing functionality into the merchant’s/business’s website via APIs. Itprovides full control over the payment process and is highly customisable.
How to integrate payment gateway in a website
Let’s look at the payment gateway integration methods in detail.
For a hosted gateway:
- Choose a payment gateway provider: Start by selecting a provider that suits your needs. Consider factors such as fees, support and security features.
- Obtain API credentials: Sign up for an account after which you’ll receive API credentials, including a public key, private key or client ID.
- Install necessary plugins: Most providers provide plugins that simplify the integration process. Install them into your platform, be it a WordPress or a WooCommerce website.
- Redirect to hosted payment page: Modify your website’s checkout process to redirect the customers to the hosted payment page. This involves updating the checkout button to send transaction details to the payment gateway’s URL.
- Test the integration: Carry out dummy tests to check the security and functioning of the integration.
Example of a hosted gateway used in the UK: Stripe
For an on-site gateway:
- Choose a payment gateway provider: This is the same as above.
- Integrate API credentials: The provider will link an API connection between your checkout page and its payment gateway. Integrate that properly (using a public key and secret key).
- Integrate payment form: Design a payment form. This form will collect payment details from your customers such as credit card number and CVV.
- Test the integration: Carry out dummy tests to check the security and functioning of the integration.
Example of an on-site gateway used in the UK: Shopify Payments
For an integrated gateway:
- Choose a provider: It’s the same as above.
- Integrate API credentials: The provider will have extensive API references and integration guides. Using them, integrate the APIs into your payment system. This would require a professional team of developers.
- Ensure PCI DSS compliance: Your website must be PCI DSS compliant. This includes securing your server, encrypting payment data and implementing robust security measures.
- Test the integration: Carry out dummy tests to check the security and functioning of the integration.
Example of an integrated gateway used in the UK: PayXpert
Find Reliable Payment Gateway Options In The UK
Want to set up a secure and reliable payment gateway on your website? ComparedBusiness streamlines this process for your business by connecting you with reliable payment gateway providers in the UK. Just submit your requirements in under 2 minutes and we will get back to you with quotes from them. This will cost you nothing.
