Payment Processing Speed: What it is & Why is it Critical for Onliaaaane Payment Gateway
If you are new to the e-marketing business, you need to know about online payment gateway and payment processing speed. Without knowing about this, you will not be able to conduct and establish your business firmly in a proper manner. Without the ability to accept payments, you will not be able to run your business at all. Hence, you need to have an online payment gateway to process your transactions. And when you are choosing an online payment gateway, payment processing speed also comes into consideration simultaneously. Let us explore more about payment gateway and processing speed of payments.
What is a payment gateway?
An online payment gateway is an eCommerce payment service provider which helps to process payments from bank accounts, debit card, credit card and e-checks, shifting important data from payment platforms to apex processors.
To put it simply, online payment gateways help both parties conduct online transactions in which the sender can transfer certain amounts to the receiver. Online payment gateways are mainly needed by eCommerce stores and portals as well as other businesses that accept and make online payments.
E-check, debit cards, credit cards and cryptocurrencies are processed through online payment gateways. It is the final step of processing a sale. Without a payment gateway, receiving payments from a customer for your product and services would be impossible for your business.
Payment processing speed
The amount of time it takes to receive feedback from the API before conducting a payment is called payment processing speed. The whole process usually takes a few seconds.
Payment processing speed is an essential factor for online payment gateways. You need to consider the facts that if your customer can make hassle-free successful payments, does the gateway offer a rapid and consistent customer experience during check out, etc. You also need to check if your payment gateway can handle high loads of traffic (particularly during offer periods and festive seasons).
Why is payment processing speed important during transactions?
In the year 2014, 536 billion US dollars worth of transactions happened only using Mastercards. Every second, Visa processes more than 2000 transactions. With all these statistics, you can understand the importance of payment processing speed.
With the constant development in networking and technology, eCommerce platforms are reaching out and conducting business throughout the world. Major companies like Amazon, Facebook, Apple, Microsoft, Airbnb are transferring millions of dollars to their merchant partners, hosts, developers all around the globe using payment gateways and the processing speed comes into play because within a few seconds both parties are conducting their business. During the age, where time and money is of optimal value, payment processing speed is saving time and money for both parties.
Within the retail environment, fast payment processing is very much important. In the case of multiple terminals, eCommerce platforms, debit card usage, credit card transactions, fast payment processing speed greatly increases the efficiency of a high volume retail business. Slower payment processing speed can lead to problems like low customer retention, fewer sales, etc. Online e-marketing platforms are more severely affected by payment processing speed rather than physical businesses. Coherence is very important for maintaining and thriving in this kind of business environment.
While shopping online, customers lose patience more frequently and especially when the payment system is slow or broken. If you want to deliver value to your customers and keep them satisfied for increasing your sales, you need to have an online payment gateway with a fast payment processing speed.