It’s a great idea if you’re looking to grow your business with the help of an online payment gateway aggregator. By working with one service, you can take advantage of many payment gateways, saving you time and money. When customers can pay through multiple methods, they’re more likely to become loyal customers and make repeat purchases. So, if you need help accepting payments online, consider adding a payment gateway aggregator to your strategy.
How does an online payment gateway work?
- Payment aggregators provide the financial relationship between a merchant and an acquirer. They connect two parties who want to transact business together. Payment aggregators are typically third party companies that do not own their bank accounts. In exchange for providing the merchant account, payment aggregators take a fee. One of the biggest benefits of payment aggregators is lower costs. Merchant account fees can be expensive. By using a payment aggregator, merchants can reduce these costs.
- When customers pay with UPI, the payment gateway tokenizes or encrypts all of the Customer’s sensitive card information. This includes card numbers, expiration dates, and security codes. The payment gateway then passes this encrypted data to the merchant’s bank account.
- Before payment is processed, the merchant’s acquirer bank receives data about the transaction. This data typically includes: The acquirer delivers the transaction data to the merchant’s payment aggregator. The payment aggregator validates the payment details and sends them to the card company. The card company verifies the information and then processes the payment. Once the payment is confirmed, the acquiring bank returns the money to the merchant’s account.
- By the agreement between the Issuer Bank and the payment processor, the processor is responsible for checking that the cardholders’ details are correct and that the card has not been used fraudulently. The processor also monitors any transactions on the card and passes information about them to the Issuer Bank. The Issuer Bank is responsible for verifying that the cardholder has enough funds in their account to cover the transaction in question. It also ensures that any charges are legitimate and can be identified as such, and if necessary, cancels or suspends a card. The payment processor is responsible for collecting data from issuers and other parties involved in a transaction (such as merchants) to check against known fraudsters, cheats and hackers.
- The Issuing Bank is solely responsible for handing over the Customer’s funds to the Merchant Bank. The Issuing Bank also ensures that the funds are deposited in the Customer’s account. If your credit or debit card is declined, insufficient funds are in your bank account. Make sure you have enough money available and check with your bank if you can call directly to verify that you have sufficient funds.
- The Issuer requests funds from the Customer’s bank account and then transfers the money to the acquirer. This is the moment when the Customer gets paid! The acquirer sends the money to the paying bank. The payer’s bank deposits funds into their account. The acquirer sends a check or wire transfer to the payee’s bank. The payee receives the funds in their bank account.
- The payment aggregator settles the funds in their bank account. The payment aggregator acts as a middleman for settling payments between merchants and consumers. The payment aggregator takes a percentage of each transaction to pay its expenses and service fees.
What are the types of online payment gateway aggregators?
- A third-party payment aggregator is a company that provides a service to connect merchants with payment processing partners, including banks and other financial institutions. Merchants can use TPPA services to simplify the payment process and handle tasks like checking account set –up, transaction reconciliation, ACH payments, and more. One of the advantages of using a TPPA is that it allows merchants to accept payments from multiple sources without having to set up individual bank accounts. However, several types of TPPA providers are available, so it’s essential to do your research before signing up. Some TPPA services are only available for large businesses, while others cater to small businesses. It’s also important to note that the fees associated with a TPPA service may vary depending on your chosen service provider.
- A bank payment aggregator is a service that provides a single interface for making payments from multiple banks. Users of the service can make regular, scheduled payments with an aggregator’s mobile app or web portal and are usually charged a small fee for each transaction. A bank payment aggregator combines the benefits of multiple banking accounts into one easy-to-use platform. With an aggregator, you can track your spending across all your debit and credit cards, set up recurring payments and transfers between different accounts, and manage all account information in one place.
Summary – Payment aggregators are the most important factor when it comes to e-commerce growth. The reason is that you have many payment options available, and each can bring in a different set of customers. With several payment providers on the market, choosing the right one for your business might seem like a daunting task. If you want the best and most reliable online payment gateway aggregators solution, then you can use a payment gateway by Nimbbl. Nimbbl is a one-stop shop for online payments and online e-commerce.