Furniture Payment Gateway

For a furniture retailer, getting a merchant account is challenging. Many financial institutions consider this type of business “high risk,” which limits access to facilities. Yet, online sales for furniture are growing. According to reports from Statista, retail e-commerce revenue for the furniture industry was expected to rise to $42.7 billion in 2019. So, what’s the reason for increased online sales even when these businesses have restricted access to banking facilities?

With the aid of special payment providers like PaymentUSA, furniture retailers have access to a furniture payment gateway. This highly encrypted virtual bridge helps businesses accept diverse payment options like credit cards so customers enjoy a safe and swift payment process. 

This article will help you understand what it is about and how to set up one for your business. The market is growing, and you could get left behind if you don’t keep up! 

What is a Furniture Payment Gateway?

A furniture payment gateway creates a connection between payment processors and merchants. This allows merchants to accept credit card payments. This technology serves as a channel to enable you to receive payments via several methods, so you can quickly process all payments.

To ensure security, this payment option has a high level of encryption to protect financial details from leaking into unsafe hands. Through this means, the merchant knows if a transaction is successful and gets the necessary approval code or evidence to complete the transaction. 

There are four main parties involved in a furniture payment gateway. The issuing bank (customer’s bank), the customer, the merchant, and the acquiring bank (merchant bank). 

Sometimes, finding differences between a furniture payment gateway and other principal payment metrics can be challenging. Here are some frequently asked questions to help you understand. 

What’s the difference between a furniture payment gateway and a virtual terminal?​

Payment gateways allow merchants to accept credit card payments, whether offline or online. The payment gateway transfers funds from the customer’s bank to your merchant account. 

Virtual terminals are software tools that limit merchants to accept payment online only. It is also known as cloud or web POS. Merchants can use any internet-enabled device as a point-of-sale terminal. 

What’s the difference between a furniture payment gateway and a payment switch?

Payment switches are a part of the furniture payment gateway. Also known as a transaction switch, the payment switch helps reroute the request to the issuing bank for the necessary action. 

Is there a need to worry about PCI compliance when you have a furniture payment gateway provider?

Yes. It is essential that all furniture merchants that accept credit card payments worry about compliance with PCI regulations. Having a payment gateway that obeys the guidelines is essential. This is why PaymentUSA ensures all its merchants operate within PCI compliance guidelines. 

How does a Furniture Payment Gateway Work?

For furniture merchants using a payment gateway, the process is seamless. Here’s how it works.

  1. The customer uses their credit card to make a payment using a card reader or an online e-commerce website. 
  2. The financial details of the card are sent to the payment gateway, then:
    • The information is sent to the merchant’s bank for processing
    • The bank determines the credit card network involved and pushes the request to them for onward approval. 
  3. The payment switch routes the request to the issuing bank. The issuing bank uses fraud detection technologies to confirm that the transaction is authentic and that there is enough credit to cover the purchase. 
  4. The issuing bank returns the transaction with an approval or decline conclusion to the credit card network via the payment switch. This is also sent back to the merchant bank with the response. 

Transactions that carry an approval notice from the issuing bank will appear as “pending” on the customer’s credit card statement. Also, you may not be able to access the funds as a merchant. At the close of business, merchants must reconcile payments by sending documentation to clear the transactions. 

The transactions are now committed at this stage. This means you can lay claim to the funds the issuing bank previously held. Later, the customer’s bank will transfer the funds when they become available. 

Categories of Furniture Payment Gateways

Payment gateways for furniture merchant accounts are divided into three major categories. Depending on the provider, you’ll use one of the following.

Hosted payment gateways

This gateway type redirects customers to the payment provider’s website. Suppose a customer clicks “buy” on your business’s website. The platform will reroute them to the payment provider’s site. There, the customer enters the credit card details. 

Once payment is done and confirmed, the system will redirect them back to the merchant’s site for order confirmation. As a sign of authenticity, many merchants add their business logo on the payment checkout page. 

Self-hosted payment gateways

You may find these listed as “pro-hosted payment gateways” on some websites – they’re the same thing. Here, your customers don’t need to visit a third-party website. However, the submission of payment details follows a unique format. 

Once it is complete, the website will automatically transfer the details to the payment gateway address. This category is the most common option and helps restore customer confidence since everything is done on one platform. 

API-hosted payment gateways

The API-hosted payment gateway is similar to the self-hosted payment gateway. The difference is in how the system processes payments. Instead of redirecting the information to the payment gateway website address, it uses APIs or HTTP queries.

Everything occurs on the merchant’s website, boosting customer confidence. This type of gateway is not common, as the merchant must comply with DSS regulations and own an SSL certificate. 

How to Set Up a Furniture Payment Gateway

If you want to operate an online store together with your offline site, a payment gateway is necessary. Here are the steps on how to set up a furniture payment gateway. 

Build your payment gateway infrastructure

To begin, you need a particular server to host the gateway. You can either build one or purchase a subscription from a third-party site. If you decide on the first option, it’s essential to make reservations to maintain your data center.

Select a payment processor

The next step is selecting a payment processor since you’ll need one to complete the transactions. You can settle for an independent processor, card network, or banking institution. When you choose one, you will need access to their API documentation to assist in transferring payment information. 

Customer relationship management (CRM)

To help ease your customers so they don’t have to input their details every time they make a purchase, you need a CRM database that helps you to manage customers’ data and record transactions. The CRM database helps you keep information on each customer such as their preferred payment method and contact information to hand easy access. 

Obtain security certifications and features

It is essential that you provide security for your customers’ card data. Tools like tokenization are essential to store credit card information from your website server. The idea of tokenization helps convert numbers into random tokens. Don’t forget to comply with PCI guidelines. 

In addition, you need to apply for a certificate (3DS) from one of the main card networks, EMV. This vital certificate helps you professionally process customers’ financial details, including cards that carry a chip. 

You don’t need to go through these steps alone. With the aid of a reliable payment processor, you can get guidance on how to proceed. This way, you don’t miss a step and can get it right. But to do so, you need to carry out research to find a reliable provider that can assist you.  

Considerations for Choosing the right Payment Provider

Since the furniture industry is considered high-risk, it is challenging to find a provider that offers a furniture payment gateway. While some are available, not all are efficient. Here are some pointers to notice when searching for a payment provider. 

  1. Customer support: getting a payment gateway is beneficial, but you don’t want your customers having issues clearing a payment with no solution or assistance. Hence, you need a provider that can assist you in getting help at any time of the day. 
  2. Multiple payment options: convenience is an essential aspect of your business, and you should consider providing a diverse number of payment options to select from. Choosing a provider that offers you a collection of different payment methods to add to your website is essential.
  3. Security and PCI compliance: the right payment provider must have high-security encryption layers. It must also comply with PCI security standards. 

Allow PaymentUSA to be your Payment Gateway Partner

With many years of experience in assisting high-risk businesses, PaymentUSA has become one of the best payment processors in the US. Our furniture payment gateways have become a relevant tool for many furniture merchants that want to scale up their businesses. 

All our strategies meet PCI standards, with 24/7 technical support available should you need it. You can always choose from a number of options, and we support international currencies if you want to expand your business to the global stage. 

With our low processing fees and high security, it’s time to build the ideal automated furniture payment gateway. Allow us to help you serve modern payment services to your customers. Book a free consultation, and speak to a representative on how to scale up your business. 

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