What is a payment gate? In simple terms, it is a digital system that securely transfers your money to a company or store owner. Most small-time physical stores may use the Square attachment for their phone or tablet. This is a form of a payment gate since as soon as it scans a credit card it starts encrypting the data. PayPal is the digital version of this, where it’s connected to your credit or debit card digitally then encrypts it and transfers the money
Which begs the question how does PayPal transfer money? Well, the most generic form of money transfer for smaller businesses using a payment gate is a redirect. A redirect is when you use a system like PayPal to pay for something. Instead of typing in your credit card information, the payment option redirects you to a sign-in page to pay using the payment gate. Another form of money transfer is when you checkout and leave a sight, then on a different site pay for the items you may have purchased. The last that I am aware of is on sight payments, this is exactly what it sounds like you pay on-site. This form of payment gate is used by bigger companies that have the server space to allow for encrypted purchases.
You may be thinking wow, this is a great form of payment. Well not exactly, just because payment gates are good doesn’t mean they have limitations. Such as a lack of payment options, some payment gates won’t have an option for the type of credit/debit card that you hold. Other problems with payment gates are that they aren’t global. As closed off as china is, they might not allow for your type of payment gate. Also, some payment gates aren’t as protected against data breaches or malware that may read people’s passwords.
These flaws are why as a business owner you should allow for a variety of payment gates, as the diversity of payment gates can allow for a larger group of potential customers and buyers. However, don’t just choose just any payment gate. This is a given, but choose payment gates that are secure and researched. Make sure you are certain that the payment gate that you have chosen for your business is safe for your future customers.
Some examples of trusted and secured payment gates are apple pay, beforementioned PayPal and Square, amazon pay, etc. Now, just like paying gas with a credit card, there will be a small fee that certain payment gates use. For insistence, PayPal takes a 2.9% plus a 30 cent fee for every purchase. Square takes 2.75% of sipe-based payments, a 3.5% along with a 15 cent fee when manually entering in a card. Apple takes a 3% out of payments with no based transaction fee. This means that apple pay may take 30 cents out of 10 dollars, while 100 dollars is 3 dollars, you can see how that may stack up over time.
Things to keep in mind when using a payment gate as a customer or business owner. You need to, as a business owner, look at the most commonly used payment gate, whether that be PayPal or apple pay. What is the fee from your payment gate, which could be what the payment gate may take out of transactions, or how much it costs to maintain an account? How secure the encryption is, and the reputation that particular payment gate may have. For business owners you must find the best payment gate for your business, however, don’t just choose one payment gate option find multiple.
Hopefully, this article has activated your awareness of payment gates and how they will be and can be used for future business transactions. Most importantly, research whatever payment gate you may use or start to use. You don’t need me to tell you that someone unwantedly using your money to buy whatever they want is bad.