Choosing the Perfect Payment Solution: Gateways vs. Terminals
In the ever-evolving world of payment technology, it's essential to stay ahead of the game. The systems and solutions used for collecting payments can save you valuable resources like time and money so we’re here today to help you choose the best and most efficient tools for your business needs. Come along as we dive into the differences between Payment Gateways & traditional, stand-alone Terminals and examine some of the most important ways they can impact your business.
You might first be wondering, “what is a payment gateway, anyways?”
I’m glad you asked!
A payment gateway, also commonly referred to as a virtual terminal (VT), is an encrypted technology used to securely collect both debit and credit card payment information for processing. It’s important to note that payment gateways do not do the actual card processing, but work with a payment processor to complete a sale. With a gateway you can have physical card processing machines and online portals available for payment processing. This payment solution is your ticket to a more versatile, efficient, and user-friendly payment experience. They adapt to the evolving payment landscape, offer a multitude of features, and help your business flourish in a digital age.
Payment gateways are the Swiss Army knives of the payment world.
They're like having a toolbox full of options right at your fingertips. While terminals are designed for in-person card payments, gateways the multitasking “brain” of your business that allow you to easily sync multiple terminals into one integrated system. They handle online transactions, e-commerce, and a plethora of payment methods, from credit cards to digital wallets. Plus, they're not limited by physical boundaries, making them a go-to choice for businesses operating both in the online world and face-to-face.
As a Virtual Terminal (VT), you can process payments from anywhere with an internet connection. No more being tethered to a brick-and-mortar location or struggling with limited mobility. Payment gateways offer you the freedom to conduct business on your terms.
As you can see, a gateway can do so much beyond just your payment processing needs. Below are some of the added benefits that come with this industry leading technology:
Streamlined Management: Payment gateways often come with user-friendly dashboards that allow you to track transactions, generate reports, and manage your payment operations efficiently. Whether you're a seasoned entrepreneur or a fresh startup, you'll appreciate the simplicity of these systems.
Seamless Integration: Integration with other business tools and platforms is a breeze with payment gateways. Whether you're working with accounting software, POS (Point of Sale) systems, customer relationship management (CRM) systems, or e-commerce platforms, gateways are built to work harmoniously with these applications. This streamlines your entire business process and saves you valuable time and effort.
One Monthly Price*: Payment gateways often follow a monthly subscription model, simplifying the complex landscape of payment processing fees. Rather than feeling overwhelmed in a sea of dozens of different charges, the monthly subscription bundles everything into one convenient, predictable payment*. This means less headache, more clarity, and more time for you to focus on what you do best.
(* This does not account for processing fees from your processor or leased/rented hardware fees.)
Now that we’ve demystified the ins and outs of what a gateway can offer, let’s take a look at the traditional, stand-alone Terminal option.
Terminals, by themselves, were once the standard for many businesses. They've been around for ages, and many businesses feel comfortable with the tried-and-true method of card payments. Today, they are becoming more obsolete due to the limited number of actions they can offer most businesses. As the world becomes more digitally advanced, terminals just aren’t quite offering everything we need to make transactions efficient, streamlined, and most importantly, simple for businesses & their customers.
While, of course, they do the important job of processing your customer’s card transactions, you won’t have the ability to sync your terminals into one database of information and records.
Why does this matter?
If your business has more than one cash register, each with its own card processing terminal and/or online terminal that customers pay online to, you won’t be able to link all of those payment terminals together to access the information in one place.
One example of how this limitation can create an issue is when you need to do a void for a customer. You will need to run the customer's card on the exact same terminal that they originally paid on to accurately process the void. This can be especially time consuming & inefficient, whereas, with a gateway, this void could be run on any terminal since they’re all synced on a single system or database.
As a business, if terminals are already in use, it can be challenging to introduce and integrate a new gateway system. Technology is constantly advancing, and keeping up can feel overwhelming. It's easy to get lost in the sea of new tech options. Like with many parts of life, change can seem daunting sometimes. It's understandable that some businesses stick with terminals because they're used to the routine. However, embracing the digital transformation can open up new horizons for your business, save thousands of dollars and hours of you and your customer’s precious time, while giving your business a competitive edge.
Plus, when using a gateway, you don’t have to say goodbye to the terminal, you just need the right technology provider like Cardnetix, that will make sure your terminal is integrated seamlessly with the payment gateway.
Remember: payment gateways are designed to simplify the process, making it easier, not harder, to manage your payments.
Well that just about concludes our look into the differences between terminals and gateways as payment solutions!
In summary, payment gateways are your ticket to a more versatile, efficient, and user-friendly payment experience. They adapt to the evolving payment landscape, offer a multitude of features, and help your business flourish in a digital age. While traditional terminals have their charm, they may no longer meet the demands of your business needs and a dynamic, tech-driven marketplace.
So, whether you're a seasoned business owner or work in another capacity of the PayTech industry, you can now make a better and more informed decision that best fits your payment needs.
If you’re ready to make the switch and enjoy the benefits of a gateway, contact us here at Cardnetix. We can’t wait to streamline and simplify your payment needs!
