Regulating the Payment Gateway Market

Technology has taken the world by storm. Many people are spending time on their mobile gadgets and PCs than anywhere else. The internet has become the place where a great majority of today’s population does almost everything: entertainment, information, and even shopping! Yes, many people are doing window and actual shopping online for pretty much everything including services. But how safe are the online transactions?

The Payment Gateway

Online transactions are mostly about making and processing orders as well as processing payments. Now this is where the complexity of online transaction comes in. As a website owner, you will need shopping cart software as well as a payment processor. This means that you need a system and software that can process the credit cards used to make the payments.

Enter payment gateways. These are simply speedy online services that link the merchant (website owner) with the banks (through the credit cards or any other payment option) through a secure SSL connection. Customers do not need to interact with the gateway since data is exchanged through the shopping cart, EFTPOS and the secure connection.

How Does A Payment Gateway Work?

Payment processing is done through the EFTPOS (Electronic Fund Transfer Point of Sale Terminal). The EFTPOS is an online process that;

Checks the validity of the payment details submitted

Encrypts the transaction details to protect against hackers

Delivers the encrypted information to the correct address

Decrypts the responses (authorization) routed back to the shopping cart

The transactions are then batched and forwarded to a processor

The credit card company pays the merchant when the order is fulfilled (e.g. shipped)

This entire process takes only a few seconds (at most 3), and is usually made up of a few steps. The buyer is usually guided through the step by step payment process. As the website (internet merchant account) owner, you don’t need to do anything since the process is usually carried out by a third party.

Are Payment Gateways Legal?

The retail payment systems are regulated by PSR, including the gateways, through the Financial Services (The Banking Reform Act) of 2013. The Act provides that the PSR (Payment Systems Regulator) will oversee all domestic payment transactions as stipulated by Treasury.

The Act defines a payment system as one that is operated by one or more parties when doing business in order to enable others transfer funds, and it includes a system designated to aid the funds transfer through another system.

Using the Payment Gateway in Any Sector

Every industry that wishes to grow in this era must make it possible for their clients to access (and purchase products and services) easily online. And one of the fastest growing sectors is the insurance industry. Is it possible for one to buy insurance services online?

Insurance players sometimes opt for PCI DSS compliant systems. PCI DSS (Payment Card Industry Data Security Standard) is used by online merchants who want to process card payments without the help of a third party. Take the insurance company for example. They have varied products such as travel, pet, car, home insurances products that are then categorized into temporary or permanent. Such a client will need a processing platform that seamlessly integrates with the operations so as to keep the operations secure and enhance customer service.

One of the most popular products is the temporary insurance market is regulated. If you need to insure your car for a few days or months to cover a special occasion, you can choose the best policy and pay for it online. it is quick, painless and convenient. And the good thing is that there are regulations for short term car insurance which protects the clients against rogue insurers. Before you settle for any one insurance provider, however, it is important to research on their credibility. Remember that the internet is full of frauds, and you need to work only with the trustworthy merchants.

The temporary insurance market is as legally binding as its permanent counterpart. You can get a temporary license to cover you for a short term. However, the Temporary licenses - Rights and limitations stipulate the terms of the contract and the rights of the licensee. You can do your research online about taking such licenses and insurance policies from leading insurers online.

In Conclusion

The digital world is growing and people are continually doing almost everything on the internet, and mostly though their mobile phones. Therefore, it is important that your site is accessible online through any gadget, and that your payment procedures can be achieved effortlessly though the same gadgets. Don’t forget to let your customers know which cards are acceptable on your site to avoid inconvenience.



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Happy Clients

Here is what some of our satisfied clients have said about us!

I’m very concerned when it comes to making payments online. I usually don’t go for website which does not have a well built identity and reputation but even if I have to make payments at such website, I ensure that they use secured protocols with an HTTPS to safeguard me.
Victor M. Dunbar
Online Clothing 4 You

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Our small business faced issues like hacking and theft of customer’s information. It was then that we realized the importance of OFCOM Watchdog and straight away opted for their service. Ever since then circumstances like that have never arise.
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