Three differences between shopping cart and payment gateway

With a myriad amount of online payment facilities placed at the user’s fingertips, there are times when a person will be able to display a high level of ambiguity when online payment terms are being discussed. Out of the several terms, two of these happen to be ‘shopping cart’ and ‘payment gateway’ terms. While the principle on which these two terms work on (online payment channel) might be the same, there are several differences between them. Here, we look at three differences between shopping carts and payment gateways.

1: Both have different functionalities

A shopping cart happens to be a critical software component (user interface based) for e-commerce websites. The shopping cart software is present either on the e-commerce website owner’s own web server or it can be designed to run on hosted servers. Nevertheless, the shopping cart’s functionality allows visitors and regular customers to select items of their choice and then make purchases which will be paid through an online medium. Synonymous terms for the term ‘shopping cart’ are known as ‘shopping baskets’ or simply ‘baskets’.

A payment gateway is different from a shopping carts because it is an e-commerce application service provider that authorizes card payments for the purpose of making transactions. These transactions will fall under:

  1. E-businesses
  2. Online retailers
  3. Bricks and clicks and several more

2: The shopping cart feature relies on the payment gateway

There are two forms of services that a customer requires when shopping online.

  1. Security
  2. Flexibility

Even though the shopping cart feature provides the user with a large amount of convenience; especially for those who do not want to make the excruciatingly long trip to the market to purchase a product, the one limitation of using a shopping cart happens to be the level of security. This level risk rises when a person uses a credit or debit card to perform a transaction. Cyber-crime is prevalent all across the World Wide Web and if not for the secure contingencies that payment gateway provides, there might be a large number of online thefts taking place.

Since customers are required to enter their personal details before making a purchase, their credit or debit card credentials are under extreme risk. However, thanks to payment gateways, transaction details are protected under HTTPS protocol, which provides several layers of security over the HTTP communication protocol. Furthermore, payment gateways also follow a security standard called PCI DSS, which stands for payment card industry data security standard. This security standard is able to protect the credentials of the user’s credit or debit card.

3: Secure payments can only be made through the payment gateway

Although the shopping cart is a critical component of the e-commerce universe, the indelible lesson that customers and online business owners have learned that without a secure payment medium to help facilitate the transactions without compromising the details of the customer, the feature will be useless. Secure payments can only be processed through payment gateways. What is more important to note is that advanced payment gateways are assimilated with tools that are automatically able to screen orders for fraud.

Even though there are several online payment terms present, the difference between a shopping cart and a payment gateway can properly be distinguished now.

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