The Top 7 Benefits of Using a Payment Gateway

iStock_000018119226Small

It seems like everywhere you look a major company’s security is being breached. Just in the last 24 months, we’ve seen serious and surprisingly large comprehensive security breaches at billion dollar corporations such as Target, Home Depot, and more. Are security breaches becoming the norm?

 

In September 2014, Home Depot confirmed that their security systems had been breached, impacting customers throughout North America and all 2,200 stores in the US. Countless customer data was compromised and left Home Depot scrambling to stay ahead of the story. This recent Home Depot breach issue is similar to what happened at Target in 2013, where the company spent $146 million to resolve issues related to their own data breach. Summed up another way, security breaches are immensely expensive, especially for large corporations,

 

To date, the largest known data breach is still TJX Cos Inc, the company that owns TJ Maxx and Marshalls. In just about a year and a half, more than 90 million credit cards were stolen.

 

Based upon what we’ve seen, it seems evident that companies need to address their payment systems and methods when storing customer data. Several businesses use software connecting directly to the acquirer to get the lowest possible fees, but a safer approach needs to be adopted. For example, payment gateways offer a range of benefits and can help companies avoid costly and problematic security breaches. There are steps that can be taken where security breaches are concerned. Utilizing payment gateway sits at the top of the list.

 

What is a Payment Gateway?

 

A payment gateway links together websites with banks so that transactions via credit card take place in real time. The gateway is a secure integral link; this approach is nothing short of a game changer.

 

Companies should not overlook the benefits of using a gateway for credit card processing for e-commerce, point of sale, and back office transactions. After all, a payment gateway adds a new layer of protection and is, of course, infinitely cheaper than even a “minor” security breach. Forward thinking corporations and enterprises should be looking to payment gateways as a significant cost-saving tool in both the short term and long term.

 

7 Key Benefits of Opting for a Payment Gateway

 

1) The most valuable aspect concerning a gateway is that the gateway company does all the heavy lifting. The credit card information stays off all the sellers’ servers, meaning that a third party cannot breach it in the first place.

 

2) Customers are free to choose the bank processor of their choice. In making your decision, you can consider various factors including ease of setup, rates, and fees. Also, be sure to find a provider that holds your merchant account and has a good reputation.

 

3) When you institute a payment gateway, PCI compliance is no longer confusing and cumbersome. Currently, the PCI standards security council requires all businesses that accept credit cards to maintain compliance in an ongoing manner and that work includes constantly issuing reports to banks and properly updating vulnerabilities.

 

4) Some payment gateways include fraud management services with a dedicated fraud risk analyst to minimize duplicitous buying behavior.

 

5) Payment gateways can be integrated into your various channels of your business with a single gateway such as e-commerce, point of sale, back office, and third party commerce, which makes for a streamlined accounting process.

 

6) Some payment gateways include PayPal and PayPal Credit integration as well.

 

7) Some payment gateways provide an open technology platform that empowers merchants to grow their business globally in a seamless fashion. The payment gateway enables merchants to leverage the payments gateway existing processing worldwide to avoid the cost and complexity of setting up their own relationship around the globe.

 

Ultimately, the benefits of a payment gateway are nothing short of tremendous. If you are looking for a way to boost security while saving money at the exact same time, then it is impossible to ignore what a payment gateway can offer.

 

It is vital to keep in mind that one security breach can cost thousands if not even millions. Of course, there is also the problematic issue of dealing with nervous customers if and when a breach becomes a matter of public record. If you are looking for a way to avoid the problems that come along with security breaches and boost overall security at the same time, then you definitely have to consider what a payment gateway has to offer.

 

Sources:

http://www.reuters.com/article/2014/09/09/us-usa-home-depot-databreach-idUSKBN0H327E20140909

http://www.digitalbusiness.gov.au/e-commerce/setting-up-an-online-store/online-payment-gateways/

https://www.pcisecuritystandards.org/merchants/index.php