The Latest

Five-step process for creating your own secure payment processing system

byBogdan Sandu
July 31, 2023
Total
0
Shares
0
0
0
0

Online merchants and those that let their clients top up their accounts inside the service need a trustworthy payment processing partner. And that’s not an issue, since businesses can use a payment gateway to conduct their online transactions safely and efficiently.

We have defined payment gateway software and discussed its importance to companies in earlier posts. Let’s go even further: should you use a pre-made online one or create your own payment gateway from scratch?

Why build your own money transfer system?

Small businesses that accept bank cards and have access to online ACH payment processing can set up payment processing rapidly. Scaling may be difficult since it increases transaction volume, offers new payment mechanisms, and typically requires international payments. Larger projects need more labor and details. They’re not always evident. If so, firm owners may consider building payment gateway.

For whom may a payment gateway be necessary?

Businesses transacting a lot of money online; Those who would prefer not to rely on external payment processors; Payment processors want to expand their operations

IT firms interested in PSP status; acquiring financial institutions want to enhance their front-end offering.

Development of a Payment Gateway: Pros and Cons

Pros

  1. Reduce costs. When using a prebuilt gateway solution, processing costs must be paid for each every transaction. You may alleviate this stress and save down on payment processing fees if you create a payment gateway.
  2. Adaptable options. If you create your own gateway solution, you may tailor it to your company’s unique requirements.
  3. A supplementary revenue stream. If you possess a payment gateway, you may start accepting payments on behalf of other businesses. Customers may pay registration and transaction fees.

Cons

  1. Space for growth. Building a payment gateway from scratch is worth it in the long run. Before you can begin utilizing your solution, you may need to invest many years in planning, development, testing, and ongoing maintenance.
  2. The price of being compliant. The PCI Data Security Standard (PCI DSS) must be met if you want to accept payments via a payment gateway. Compliance is crucial, but certification is expensive and time-consuming.

Build a secure payment gateway in 5 simple steps

The construction of a payment gateway that works with standard payment processors entails four primary steps:

Step 1: Building the Foundation

You may host your solution yourself or on a third-party server. If you choose for the latter option, you’ll be your own boss but will have to recertify with PCI DSS every year. AWS can host a server for you.

Step 2: Implementation and Growth

The framework must be integrated with acquiring banks, processors, and other gateways. Visit their API documentation for instructions. After that, you’ll need an external API to connect your solution to other apps. Payment gateways need many partners to compete.

Step 3: Client Relationship Management System

Use this effective system to track all relevant indicators and improve the quality of your business choices.

Step 4: Tokenization

Safely managing credit card numbers and other personal financial information requires this. Gateways now store credit card data instead of retailers. Credit card tokenization simplifies and secures recurring billing.

Step 5: Ensure PCI DSS Compliance

PCI DSS is one of the latest industry standards that must be strictly adhered to while processing online payments. You must pass the PCI audit to get the PCI DSS compliance certificate. This is an expensive process that has to be audited every year.

7328cad6955456acd2d75390ea33aafa?s=250&d=mm&r=g Five-step process for creating your own secure payment processing system
Latest posts by Bogdan Sandu (see all)
Share
Tweet
Share
Share
Related Posts