Payment gateway is a platform used by e-commerce sites to receive payments from the customers and transfer the amount to site owner’s account. Through the interface customer must input Debit/ Credit card details like card number, expiry date and CVV, the amount then gets deducted from customers account and gets credited to merchant’s account. Payment gateway mainly works as an interface to approve the payment process between merchant and customer. There are two different types of payment gateways mainly 2D payment gateway and 3D payment gateway. Here we will discuss about 2D payment gateway.2D payment gateway generally called as 2 Dimension Secure (2DS) is widely used payment gateway and it’s the old classic system used by different countries. 2D payment gateway mainly works between customer and the merchant. That is why it is called 2D payment gateway without otp or 2D gateway without otp.
How 2D payment gateway works: 2D payment gateway works in a very simple and easy way just between merchant and customer. At first customer enters the credit or debit card details and these details are transferred to payment gateway service provider through encrypted message. The service provider than sends those encrypted data to bank for confirmation and approval of the amount. Once bank approves the amount, another encrypted message is received to payment gateway which is then further processed to send a confirmation to merchant to approve the order. In a transaction through 2D payment gateway, one does not require any OTP or a 3D secure code to approve the payment, that is why it is called No otp gateway or gateway without otp.
Advantages of 2D payment gateway: Because of being a gateway without otp, it actually saves customer time by not entering an otp. It is a secured electronic system that enhances the payment interface and eases the business of merchant. 2D payment gateway is a full digital service that is end to end encrypted and makes online shopping secure and easier. Now sellers do not have to pay a huge transportation cost or pay a rent for showrooms, one can store the materials at home and perform the business through websites and collect payment using 2D payment gateway. The collection of payment becomes very easy and secured. Whether its booking tickets, bill payments, online shopping everything can be done through this 2D payment gateway without otp.
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How to get 2D payment gateway: Any online merchant now a days want to integrate their payment through payment gateways. There are several 2D payment gateway service providers who can get your transactions linked to your online orders to receive payment from customer. There are certain formalities that needs to done before getting approval of 2D payment gateway. Let us try to understand few requirements on how to apply for 2D gateway.
- Secured Merchant’s website: An online web portal is a mandatory requirement for receiving the orders online and confirm the order by receiving payments online.
- Certificate of Incorporation: Merchant needs to get a certificate of incorporation of the payment gateway linked to their website, from government entities who provides it.
- Certificate of Incumbency: This document generally refers to a file that should contain the names of all company current directors, managers and other board members signed in a notary stamp paper.
- Copies of valid passports with bearer’s signature: This is basically the passports of company main board memberswith clear sign at the end of passport, that needs to be submitted to payment gateway service provider company.
- Application of Merchant: A fully filled application must be submitted along with all these documents that contains basic details about the company and other requisite information.
Disadvantages of 2D payment gateway: Although 2D payment gateway is faster process but making the system faster let the developers to compromise with security. Suppose you have cards added to a Merchant account and someone who knows your password of Merchant account can directly buy something from that Merchant just in clicks, as because he/she does not need to enter any additional passwords or secure codes to process the transaction. If the Merchant does not have hidden policy to make the card details unseen from the web, it becomes more easier to get all the financial details of the card and use it anywhere else. To provide seamless experience to the customers Merchant prefers 2D payment gateway but security is ignored. If a person is donating some money to an NGO using payment gateway, and if the Ngo is fraud, the person may not know that he is fraud because he/she is not taken to the secured page where merchants actual registered name is displayed and it is confirmed that the money is being transferred to the displayed account holders name only. Because of being no otp gateway, the customers finds it easy to use and always want to opt for it but this seems to be wrong in some way. There are certain number of payment gateway service providers who even compromises with ssl encryption to ensure that payment is processed faster. Although, we all want any payments to process faster but it must be ensured that security is never compromised.
Conclusion: 2D payment gateway for NGO and 2D payment gateway for international payments is slightly different than interface used in domestic online purchase. But in international payments 2D gateway may serve as less secure service to process the payment. As there is no additional layer of otp or 3D secure code, there is a high chance that hackers may spoof the payment details and misuse the information. Therefore, 3D payment services must be preferred over 2D payment gateway without otp. Because of having otp as extra layer, 3D gateway builds more trust from the customer and therefore customer always comes back to do more transaction as it builds trusts among them. 2D payment gateway has been widely used in US or UK market but to prevent the fraudulent 3D must be used.
