Payment Gateways are Restoring Convenience in Online Banking

Online Banking on a Smartphone

Payment Gateways are Restoring Convenience in Online Banking

Posted on 08.18.2017 by Eugene O'Rourke under Merchant Processing, Payment Processing

Online payment gateways are changing how businesses process transactions, especially banks. More and more, financial institutions are adopting payment solutions that give consumers a variety of ways to manage their money.

A Variety of Payment Gateway Options

Credit and Debit Cards
While debit and credit cards aren’t new, accessing them through a digital portal – such as a mobile app or a desktop computer – has only existed for the past decade or so. Today’s consumers access their debit and credit accounts through a page on their financial institution’s webpage, where they can perform any function they need. Paying a bill or transferring money to another account is as easy as logging in.

ACH
An even newer technology is the Automated Clearing House (ACH) option, in which software integrates consumer and merchant data in a smooth, almost instantaneous transaction. Many billing companies set up an ACH transaction for recurring payments, such as monthly bills. Customers need only set up their payment schedule once, and the software handles the transaction for each subsequent month.

Merchant Service Providers (MSP)
Merchant Service Providers, such as PaymentVision, act as a conduit between the merchant and the consumer. The merchant and the customer share their data with the MSP, who coordinates and completes the transaction for a small fee. The MSP is responsible for keeping all transaction data secure, relieving both the vendor and the consumer of that burden.

Online Banking Saves Time

Another advantage of online banking is its convenience. The global rise in mobile devices has fueled the equally significant rise in the number of people who use those mobile devices for banking purposes. Consumers can manage their financial activities at work, on the road, during vacation, or anywhere else their day takes them.

Additionally, digital technology has helped keep the “virtual bank” open 24/7. Automated technology on the bank’s end manages transactions continuously, regardless of time, ensuring that customers always have access to their assets. For the consumer, unlimited access to banking resources saves time, adds convenience, and helps them avoid costly late fees and other charges. They no longer need to enter a physical bank to process a financial transaction.

Cybersecurity Ensures Secure Payments

As online banking becomes more popular, it’s also becoming a bigger target for cyber crime. In recent years, hackers have exploited vulnerabilities in what banks believed were “unhackable” security programs for protecting both consumer and institutional data.

Consequently, the tech industry has developed a system of banking security best practices that make today’s online banking safer than ever:

  • Dual authentication – establishes a two-step authorization process for each consumer. Thieves that can’t respond properly to both steps are denied entry to those accounts.
  • Password protection – limits account access only to those who enter the correct password.
  • Data encryption – uses technology to convert consumer data into a code unintelligible to everyone except the de-encryptor at the other end of the transaction. Encryption is the strongest security practice available.

By enhancing cyber security, banks ensure that private financial data remains secure and hidden from hackers. Customers can enjoy faster, safer and easier banking access than they’ve ever experienced before.

As a PCI Level 1 certified payment gateway provider, PaymentVision offers clients integrated and secure payment solutions that add simplicity, speed, and convenience for customers and their accounts. Contact us today to learn more about how we can help improve your business operations.