You have the option of developing your own payment gateway from the ground up.
if you’re the kind of business owner who wants to have complete control over operations. The greatest degree of customization is provided by this, but it’s crucial to be realistic about the difficulties involved. Here are some instructions on how to build a payment gateway for your website as well as some helpful advice.
A payment gateway is what?
Outlining the purpose of your own payment gateway before you decide to build one is beneficial. A payment gateway is a platform that enables credit and debit card payments on your website. It acts as a liaison between the client, the company, and the payment processor. To do this, a payment gateway or checkout page must be made available for customers to enter their payment information. Sensitive data must then be encrypted and sent to the payment processor or bank. These features must be considered when developing your own payment gateway, and you must also make sure it complies with PCI standards and the most recent anti-fraud laws.
Which industries could be most motivated to learn how to build payment gateways? Usually, it will be larger companies that don’t want to rely on a third party or those that are expanding quickly and need a customized solution to fit their particular requirements.
Creating a payment gateway
Your company’s demands will determine the precise procedures for setting up a payment gateway, although most organizations will utilize a procedure similar to the one described here.
1. Create the infrastructure for your payment gateway first. Whether it’s your own server or one provided by a third party, you’ll need a server to host your gateway. If you are going to use your own server, you need to think about audits and maintenance for any data centers that are associated with it.
2. Select a credit card processor. To conduct online transactions, a processor and a payment gateway collaborate. This might be a bank, a network of credit cards, or a private processor. In any situation, you are required to obtain the API documentation for the processor and adhere to the implementation standards.
Additionally, you’ll need to create an external API for the transfer of customer payment information.
3. Establish a system for managing your customer relationships (CRM). Once the foundation of payment processing is in place, you should consider creating a unique platform for handling transactions and customer information. A structured customer database created by a strong CRM system keeps customers and their preferred contact and payment information in one place.
4. Put security measures in place. One thing to bear in mind is that you are in charge of all cardholder data when you design your own payment gateway. As a consequence of this, it is essential to make use of techniques such as tokenization, which keep data about credit cards separate from the server that is hosting your business on the internet.
Credit card numbers are swapped out for anonymous tokens during tokenization. If you handle credit cards, you must also adhere to all PCI DSS rules.
5. Obtain the necessary licenses. You are required to submit an application to EMV (Europay, Mastercard, or Visa) for a 3DS certification.
in addition to PCI audits. Acquiring this international certification is necessary in order to process consumer bank cards that include a chip.
The benefits and drawbacks of building a bespoke payment gateway
Should you set up a payment gateway? There are several potential benefits and drawbacks.
pros of creating a payment gateway
- Reduced costs over time, both monthly and per transaction
- Complete command over the payment processing
- Being able to design your own unique characteristics
- You may generate more money by offering your payment gateway services to other businesses.
Cons of creating payment gateways
- Costly setup expenses, including all development fees and audits as well as all necessary certifications
- Long setup period between development, user experience testing, and continuous maintenance
- More labor-intensive than a standard solution
- It is entirely your responsibility to ensure security.
Please get in touch with our expert if you need further details.