Terms

Payment Gateways

A payment gateway is a technology that acts as an intermediary to securely authorize and process payments from customers to businesses for both online and in-person transactions. It functions as the digital equivalent of a physical point-of-sale terminal, capturing and encrypting payment information before securely transmitting it between the customer, the merchant, and their respective financial institutions.

Key Features of Payment Gateways

Payment gateways are versatile interfaces that accept a wide range of payment methods. This includes credit cards, debit cards, digital wallets, and even contactless payments. A primary feature is the robust encryption of sensitive payment data during transmission, ensuring security for every transaction.

They connect a merchant's checkout system to the broader payment processing network. Gateways also employ advanced fraud detection tools like address verification and CVV checks. Additionally, they provide businesses with valuable transaction reporting and management tools.

Benefits of Using Payment Gateways

Integrating a payment gateway offers businesses a multitude of advantages that streamline operations and enhance the customer experience. They not only simplify the transaction process but also provide robust security and operational efficiencies, leading to increased sales and customer trust.

  • Security: Enhanced protection through data encryption and advanced fraud detection tools.
  • Efficiency: Automated payment processing that speeds up transactions and improves cash flow.
  • Experience: A simplified and convenient checkout process that reduces cart abandonment and builds trust.
  • Versatility: Support for a wide range of payment methods and currencies, enabling global reach.

Payment Gateways vs. Payment Processors

While they work together, payment gateways and processors serve distinct functions in the transaction lifecycle.

  • Gateways: These are the customer-facing interfaces that securely collect and transmit payment information. They excel at security and fraud prevention but can involve integration complexities and transaction fees. Enterprises and mid-market companies prefer them for creating a seamless online checkout experience and accepting various payment methods.
  • Processors: These services handle the backend authorization and settlement of funds between banks. They offer direct control over fund movement but have limited customer-facing features. Businesses choose specific processors for direct bank relationships, custom pricing, or when they have the technical resources to manage backend processing separately.

Security Measures in Payment Gateways

Payment gateways are built with multiple layers of security to protect sensitive financial data and prevent fraud. They employ a combination of industry standards, data encryption, and verification protocols to ensure every transaction is secure. These measures are critical for building trust between customers and merchants.

  • Encryption: Secures data transmission using protocols like SSL and TLS.
  • Compliance: Adheres to strict PCI DSS standards for handling cardholder information.
  • Fraud Detection: Utilizes advanced algorithms to identify and block suspicious activity.
  • Verification: Confirms cardholder identity through CVV checks and Address Verification Systems (AVS).
  • Authentication: Adds an extra layer of security with protocols like 3-D Secure.

Future Trends in Payment Gateway Technology

The future of payment gateways is moving towards greater convenience and intelligence. Technologies like contactless payments via NFC and QR codes are becoming standard. We will also see wider adoption of mobile wallets, biometric authentication, and even payment gateways designed for cryptocurrencies, all powered by AI for enhanced security and speed.

Frequently Asked Questions about Payment Gateways

How does a payment gateway differ from a merchant account?

A payment gateway securely transmits transaction data for authorization. A merchant account is a special bank account where funds are deposited after a transaction is successfully processed. The gateway is the messenger, while the merchant account is where the money settles.

What are the typical costs associated with using a payment gateway?

Costs generally include a combination of setup fees, monthly subscription fees, and per-transaction charges. These transaction fees can be a flat rate, a percentage of the sale amount, or a hybrid of both, depending on the provider and your sales volume.

Can I switch payment gateway providers easily?

Switching is possible but can involve technical complexities, especially with custom integrations. It requires migrating customer payment data securely and ensuring the new gateway integrates with your existing e-commerce platform, which may cause temporary downtime or require developer resources.

Other terms

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Mobile Optimization

Mobile optimization adapts your website to ensure visitors on smartphones and tablets have a seamless, user-friendly experience.

Mobile Optimization

Mid-Market

Mid-market companies are businesses larger than small businesses but smaller than large enterprises, often defined by revenue or employee size.

Mid-Market

API

An API (Application Programming Interface) is a software intermediary that allows two applications to talk to each other and exchange information.

API

Digital Strategy

A digital strategy outlines how your business will use online channels, data, and technology to achieve its goals and connect with customers.

Digital Strategy

Order Management

Order management is the end-to-end process of tracking customer orders from placement to fulfillment, ensuring a seamless customer experience.

Order Management

Buyer’s Remorse

Buyer’s remorse is the sense of regret or anxiety that can arise after making a purchase, often questioning if it was the right decision.

Buyer’s Remorse

Digital Analytics

Digital analytics is the analysis of data from digital channels to understand user behavior and optimize online experiences for business goals.

Digital Analytics

Data Cleansing

Data cleansing, or data scrubbing, is the process of detecting and correcting inaccurate records from a dataset to improve data quality.

Data Cleansing

CCPA Compliance

CCPA compliance is adhering to the California Consumer Privacy Act, a law that grants consumers more control over their personal data.

CCPA Compliance

Process Automation

Process automation uses technology to execute recurring tasks or processes, replacing manual effort to cut costs and boost efficiency.

Process Automation

Bounce Rate

Learn about bounce rate, including understanding bounce rate implications, key factors affecting bounce rate, & reducing your bounce rate effectively.

Bounce Rate

Sales Sequence

A sales sequence is a series of automated touchpoints sent to prospects over time to guide them through the sales funnel.

Sales Sequence

Customer Relationship Management Hygiene

CRM hygiene involves regularly cleaning and updating your customer data to ensure your CRM system remains a powerful and reliable tool.

Customer Relationship Management Hygiene

Omnichannel Marketing

Omnichannel marketing creates a seamless, unified customer experience by integrating a company's various communication and sales channels.

Omnichannel Marketing

Monthly Recurring Revenue (MRR)

Monthly Recurring Revenue (MRR) is the predictable, recurring income a business expects to receive each month from all active subscriptions.

Monthly Recurring Revenue (MRR)

Network Monitoring

Network monitoring is the continuous process of tracking a computer network's performance and health to detect and resolve issues proactively.

Network Monitoring

Precision Targeting

Precision targeting is a marketing strategy that uses data to identify and reach a highly specific audience most likely to convert.

Precision Targeting

Competitive Advantage

A competitive advantage is a unique edge that allows a business to produce goods or services better or more cheaply than its rivals.

Competitive Advantage

Average Order Value

Average Order Value (AOV) tracks the average dollar amount spent each time a customer places an order on your website or mobile app.

Average Order Value

Positioning Statement

A positioning statement is a concise description of your target market and how your product or service uniquely fills their needs.

Positioning Statement

Challenger Sales Model

The Challenger Sales Model is a sales approach where reps challenge a customer's thinking by teaching, tailoring, and taking control of the sale.

Challenger Sales Model

B2B Intent Data

Learn about B2B intent data, including how B2B intent data enhances sales strategies, sources of B2B intent data, leveraging B2B intent data for competitiveness.

B2B Intent Data

Video Messaging

Video messaging involves sending short, personalized video clips to prospects or customers, replacing traditional text-based communication.

Video Messaging

Draw on Sales Commission

A draw on commission is an advance payment a salesperson receives against future earnings, which is later repaid from earned commissions.

Draw on Sales Commission

Sales Productivity

Sales productivity is the measure of a sales team's efficiency, focusing on maximizing revenue generation while minimizing the resources spent.

Sales Productivity

B2B Sales Channels

Learn about B2B sales channels, including types of B2B sales channels, strategies for effective channel selection, & integrating technology in B2B sales.

B2B Sales Channels

Dark Social

Dark social is the sharing of content through private channels like messaging apps or email. This traffic is hard to track as it lacks referral data.

Dark Social

Load Balancing

Load balancing is the practice of distributing incoming network traffic across a group of backend servers, ensuring no single server is overworked.

Load Balancing

Triggered Email

A triggered email is an automated message sent to a user in response to a specific action or event, like signing up or making a purchase.

Triggered Email

Value Statement

A value statement is a clear, concise declaration of the unique benefits a company provides to its customers, outlining its core purpose.

Value Statement

Search Engine Results Page

A Search Engine Results Page (SERP) is the page displayed by a search engine after a user enters a query, listing results ranked by relevance.

Search Engine Results Page

InMail Messages

LinkedIn InMail messages are a premium feature that lets you directly message any LinkedIn member, even if you're not connected to them.

InMail Messages

Compliance Testing

Compliance testing ensures a product or system adheres to specific regulations, standards, or policies set by governing bodies or organizations.

Compliance Testing

User Interface

A User Interface (UI) is the point where humans and computers interact. It encompasses all visual elements like screens, icons, and buttons.

User Interface

Customer Retention Rate

Customer Retention Rate (CRR) is the metric that measures the percentage of customers a company has kept over a specific period of time.

Customer Retention Rate

Field Sales Rep

A field sales representative, or outside sales rep, travels to meet prospects in person, selling products or services directly within their territory.

Field Sales Rep

Product-Market Fit

Product-market fit is when a product meets the needs of a strong market, leading to high demand, customer satisfaction, and organic growth.

Product-Market Fit

Sales Territory Planning

Sales territory planning is the process of dividing customers into geographic areas to be assigned to specific sales reps or teams.

Sales Territory Planning

Elevator Pitch

An elevator pitch is a short, memorable summary of what you do, designed to be delivered in the time it takes to ride an elevator.

Elevator Pitch

CPQ software

CPQ (Configure, Price, Quote) software is a sales tool for creating accurate, configurable quotes for complex products and services.

CPQ software

Annual Recurring Revenue (ARR)

Annual Recurring Revenue (ARR) is the predictable income a company expects to receive from its customers over a one-year period.

Annual Recurring Revenue (ARR)

Fault Tolerance

Fault tolerance is a system's ability to continue operating without interruption when one or more of its components fail.

Fault Tolerance

Pipeline Coverage

Pipeline coverage is a key sales metric. It's the ratio of your total open pipeline value to your sales quota for a specific period.

Pipeline Coverage

Sales Development

Sales development is the process of identifying and qualifying potential customers to create a pipeline of sales-ready leads for closers.

Sales Development

Unique Value Proposition (UVP)

A Unique Value Proposition (UVP) is a concise statement that clearly communicates the unique benefit a customer gets from your product or service.

Unique Value Proposition (UVP)

Bottom of the Funnel

Learn about bottom of the funnel, including maximizing conversions at the funnel's end, & strategies for nurturing bottom-funnel leads.

Bottom of the Funnel

Lead Qualification Process

The lead qualification process is how you determine which prospects are most likely to become customers by evaluating them against specific criteria.

Lead Qualification Process

Affiliate Marketing

Affiliate marketing is a performance-based model where affiliates earn a commission for promoting another company’s products or services.

Affiliate Marketing

LinkedIn Sales Navigator

LinkedIn Sales Navigator is a premium tool helping sales teams find and engage with the right leads and accounts on the LinkedIn network.

LinkedIn Sales Navigator

GTM

A go-to-market (GTM) strategy is an action plan that outlines how a company will reach target customers and achieve a competitive advantage.

GTM

Lead Enrichment Software

Lead enrichment software adds crucial data to your leads, like contact info and firmographics, to help you better understand and engage them.

Lead Enrichment Software

Progressive Web Apps

Progressive Web Apps (PWAs) are websites that look and feel like native mobile apps, offering features like offline access and push notifications.

Progressive Web Apps

Database Management

Database management is the process of organizing, storing, and maintaining data in a database to ensure its accuracy, security, and availability.

Database Management

Zero-Based Budgeting (ZBB)

Zero-based budgeting (ZBB) is a method where all expenses are re-evaluated and must be justified from scratch for each new budget period.

Zero-Based Budgeting (ZBB)

Target Account List

A Target Account List (TAL) is a focused list of high-value companies that a business specifically aims to convert into customers.

Target Account List

Brag Book

Learn about brag book, including crafting your outstanding brag book, essential components of a brag book, & brag book vs. resume: unveiling the differences.

Brag Book

Nurture

Nurture is the process of building relationships with potential customers, guiding them through the sales funnel with personalized communication.

Nurture

Product Qualified Lead

A Product Qualified Lead (PQL) is a user who has experienced a product's value, signaling a strong potential to convert to a paid customer.

Product Qualified Lead

Dynamic Territories

Dynamic territories are fluid sales assignments that adjust based on real-time data, ensuring reps can focus on the highest-value accounts.

Dynamic Territories

Channel Marketing

Channel marketing is a strategy where a company sells its products or services through third-party partners, like resellers or affiliates.

Channel Marketing

Application Performance Management

Application Performance Management (APM) monitors and manages an application's performance, availability, and the experience of its end-users.

Application Performance Management

Warm Outbound

Warm outbound is a sales strategy for contacting prospects who've shown interest in your brand through prior engagement, like website visits.

Warm Outbound

Sales Compensation

Sales compensation is the total pay a salesperson receives, including salary, commissions, and bonuses, structured to motivate performance.

Sales Compensation

Net Promoter Score

Net Promoter Score (NPS) is a metric measuring customer loyalty by asking how likely they are to recommend your company or product to others.

Net Promoter Score

Signaling

Signaling is using credible actions to convey information about quality or intent to a less-informed party, effectively building trust.

Signaling

Awareness Buying Stage

The awareness stage is the first step in the buyer's journey, where a potential customer realizes they have a problem or an opportunity to explore.

Awareness Buying Stage

Sales Intelligence

Sales intelligence is technology that gathers and analyzes data to help salespeople find and understand prospects and existing clients.

Sales Intelligence

Website Visitor Tracking

Website visitor tracking collects and analyzes data on user behavior to understand their journey and improve the overall user experience.

Website Visitor Tracking

Early Adopter

An early adopter is a user who embraces a new product or technology before the majority, helping to validate and popularize the innovation.

Early Adopter

Segmentation Analysis

Segmentation analysis is the process of dividing a broad market into smaller, distinct groups of consumers with similar needs or characteristics.

Segmentation Analysis

Messaging Strategy

A messaging strategy defines what your brand says, how it says it, and where it says it to connect effectively with your target audience.

Messaging Strategy

Pipeline Management

Pipeline management is the process of tracking and managing potential customers as they move through the different stages of your sales process.

Pipeline Management

Letter of Intent

A Letter of Intent (LOI) is a document declaring the preliminary commitment of one party to do business with another, outlining the chief terms.

Letter of Intent

Marketing Automation

Marketing automation uses software to automate repetitive marketing tasks, such as email marketing, social media posting, and ad campaigns.

Marketing Automation

Sales Enablement

Sales enablement provides sales teams with the necessary tools, content, and information to help them sell more effectively and efficiently.

Sales Enablement

Sales Demo

A sales demo is a presentation where a sales rep shows a prospect how a product or service works and solves their specific problems.

Sales Demo

B2B Demand Generation

Learn about B2B demand generation, including strategies for effective B2B demand generation, & key components of a demand generation program.

B2B Demand Generation

C-Level or C-Suite

The C-suite, or C-level, refers to a company's most senior executives. Their titles usually start with 'Chief,' such as CEO, CFO, or CTO.

C-Level or C-Suite

Sales Objections

Sales objections are reasons or concerns raised by a potential customer as to why they are hesitant or unwilling to make a purchase.

Sales Objections

Request for Quotation

A Request for Quotation (RFQ) is a document that a company sends to one or more suppliers to get a quote for specific products or services.

Request for Quotation

Canary Releases

A canary release is a deployment strategy where new software is rolled out to a small user group first, minimizing risk before a full release.

Canary Releases

Nurture Campaign

A nurture campaign is a series of automated messages designed to build relationships with potential customers and guide them toward a purchase.

Nurture Campaign

Marketing Qualified Opportunity

A Marketing Qualified Opportunity (MQO) is a lead vetted by marketing as a genuine sales opportunity, ready for direct sales follow-up.

Marketing Qualified Opportunity

Average Revenue per Account

Average Revenue per Account (ARPA) is the average revenue generated from each customer account, usually measured on a monthly or annual basis.

Average Revenue per Account

Deal Closing

Deal closing is the final step in a sales cycle. It's when a prospect signs a contract and officially converts into a paying customer.

Deal Closing

B2B Sales

Learn about B2B sales, including key strategies for B2B success, types of B2B sales models, & B2B vs. B2C sales: understanding the differences.

B2B Sales

Buying Signal

A buying signal is any action from a prospect that indicates they are interested in making a purchase, helping sales teams prioritize leads.

Buying Signal

Buyer Behavior

Learn about buyer behavior, including understanding the buyer's journey, influencing factors in buyer behavior, & buyer behavior and marketing strategy.

Buyer Behavior

Lead Generation

Lead generation is the process of identifying and cultivating potential customers for a business's products or services.

Lead Generation

Competitive Landscape

A competitive landscape is an analysis of your direct and indirect competitors, revealing their strengths, weaknesses, and market positioning.

Competitive Landscape

Sales Conversion Rate

Sales conversion rate is the percentage of prospects who take a desired action, like making a purchase, turning them into customers.

Sales Conversion Rate

Account Mapping

Account mapping is comparing your customer list with a partner's to find common prospects and unlock new sales opportunities.

Account Mapping

Demand Capture

Demand capture is the strategy of engaging potential customers who are already actively looking for a solution that your company provides.

Demand Capture

Dialer

A dialer is software that automatically dials phone numbers for agents, boosting call efficiency and connecting them to live prospects faster.

Dialer

B2C2B

Learn about B2C2B, including how B2C2B transforms sales, key strategies for B2C2B success, & differences between B2C2B and B2B2C.

B2C2B

Enterprise

An enterprise is a large-scale organization, often a corporation, defined by its complex structure and substantial number of employees.

Enterprise

Needs Assessment

A needs assessment is the process of identifying the gap between a company's current state and its desired future state.

Needs Assessment

Sales Engineer

Sales Engineers blend deep technical knowledge with sales acumen, demonstrating a product's value and solving customer problems to drive revenue.

Sales Engineer

Digital Advertising

Digital advertising is the practice of delivering promotional content to users through various online and digital channels like social media or search engines.

Digital Advertising

Lead Management

Lead management is the process of capturing, nurturing, and qualifying leads to guide them from initial interest to sales-ready.

Lead Management