Why Are Enterprise Cryptocurrency Payment Gateways So Useful?
OWNR has extensive experience in business development and today we are glad to share it with you. Read the new column by Ivan Kurnavin, OWNR Wallet BDO.
Payment gateways might be the most important part of your cryptocurrency business platform. Choosing the right payment processor involves making many decisions. Some of these decisions are:
- Which cryptocurrencies need to be integrated
- Which credit cards you must support
- Whether it works with your bank’s payment gateway, and
- The level of regulatory compliance required
Here’s what they do, their requirements, and how OWNR Payment Gateway excels at them.
What do payment gateways do?
To put it simply, cryptocurrency payment gateways bridge money between cards and accounts and the merchant’s bank account.
Specifically, a user enters their card information or authorizes their app to pay for them, and the request goes to their bank. In financial terminology, we call this bank the issuing bank. The bank then sends this request to the merchant’s bank, and the transaction is completed. The merchant’s bank is frequently called the acquirer bank.
The question is now, how can the banks process the payments of a cryptocurrency payment gateway? You see, the banks do not process the cryptocurrencies themselves — that’s the job of the payment gateway — but they do handle the payments that users make to the business.
In particular, each bank has its own payment processing network (they have to because their service is proprietary), and all the other businesses — including OWNR payment gateway — have to connect to them. So whether the sending payment service is PayPal or Skrill or Stripe or even one of those generic forms that ask for your card info, they are ultimately connecting to the bank.
What are their requirements?
So now that we know what a business cryptocurrency payment gateway does, what laws are in place that they must abide by?
As you might know, financial transactions are heavily regulated to stop things like fraud and money laundering from happening. Being aware of them can help you stay out of legal trouble.
The first of these is Payment Card Industry Data Security Standard or PCI DSS for short. It is a procedure for credit card companies to protect their cards from theft. As a result, companies involved have to make a secure computer network for their transactions and routinely patch vulnerabilities. Organizations do not want to do business with a payment gateway that has a bad track record.
Unfortunately, most payment processors are not fully compliant with PCI DSS. This is a direct result of businesses failing to perform proper security practices. As a result, data from Verizon’s 2020 payment security report shows that only a staggering 27.9% of all organizations complied 100% with PCI DSS in 2019. This is in contrast to a record-high 55.5% full compliance in 2016.
The second technology is 3D Secure, or just 3DS, and it protects the information flowing between the issuer, the acquirer, and the payment network. Obviously, it is not a fiat-exclusive technology, and cryptocurrency payment networks such as OWNR also make extensive use of it. 3D Secure has undergone a newer revision titled 3DS 2.0 which places further requirements.
How OWNR Payment Gateway makes transactions safe
OWNR Payment Gateway is our revolutionary service that allows your customers to buy cryptocurrencies with credit cards using next-generation security. It is PCI DSS compliant, saving you the worry about your customer information’s safety as a result. For maximum security, it also only processes 3D Secure and 3D Secure 2.0 transactions. Transactions that fail the verification checks will be reported back to you promptly. We also have a dedicated compliance team that verifies all clients, protecting your business’s reputation in the process.
With partnership and integration inquiries contact us at sales@ownrwallet.com
