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Payment Gateway Malaysia Doubles the Prospect of Your Business Growth

Malaysia is a popular choice among companies trying to grow into new markets. When compared to other Southeast Asian countries, Malaysia's GDP growth rate is both high and consistent. There are numerous reasons to be optimistic about the potential of this e-commerce hub, especially given the Malaysian government's push for economic and technical development.

Modern consumers and business owners do not want to be restricted to using only their laptops for payment processing. They want to be able to make payments from their tablet or smartphones at any time and from any location. Business owners may have multiple locations and must accept multiple forms of digital payment at all times and from all locations.

Modern payment processing platforms may lack the mobility that modern consumers have come to expect. Because of technological advancements in other industries' user experiences, many consumers now expect the same – or better – level of convenience with financial mobile payment processing. Consumers will place a greater emphasis on mobility and convenience for payment processing platforms as mobile ecosystems evolve.

The Three Main Elements of Payment Processing

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It would be simple to describe payment processing as the "middle man". It connects your company to the financial institutions that manage credit cards and bank accounts. But it's important to understand how that process works in practice. This will assist you in selecting the payment processor that is best for your company.

All payment processing software is made up of three main components:

  • Your Merchant Account:-
  • All customer payments are deposited into the merchant account of your business. It may not be the primary account where you manage your day-to-day expenses. Any transactions processed by your payment processing platform are routed through this account.

  • Your Payment Gateway:-
  • As the name implies, the payment gateway connects your physical and online POS systems, as well as your merchant account, to credit card networks and issuing banks. There would be no way to transfer data between accounts if there was no payment gateway.

    Payment gateways can only be developed by organizations that are either Member Service Providers (MSP) or Independent Sales Organizations (ISO). This status ensures that they meet the necessary financial, technical, and security requirements to securely manage payment information. Payment processors must continue to meet PCI DSS security standards to maintain that status.

    PayCly is a PCI DSS level 1 certified to ensure safety and security for our customers. This means that with our Payment Gateway Malaysia can handle over 6 million transactions every year while guaranteeing that all data is securely stored, processed, and sent.

    What Happens In The Back-End When A Transaction Occurs?

    PCI DSS compliance, developed by the credit card industry association, covers a wide range of cyber security and information management requirements that help mitigate risk and protect financial data from compromise. When a transaction occurs, merchant payment processing software goes through a series of steps to approve and complete the transaction:

    • The POS sends the transaction details to the merchant payment gateway, which securely sends the information to the processor.
    • The information is delivered to the customer's bank or credit card network by the processor (depending upon the payment type).
    • The transaction is reviewed by the issuing bank, which then approves or denies it.
    • If the transaction is successful, funds are released and transferred to the merchant account.
    • The processor receives the approval/denial notification, which is then relayed to the POS via the merchant gateway.

    This entire process usually takes a few seconds. But it can take up to a few days for the funds to be transferred to the merchant.

    The Two Most Primary Concerns with Online Payment Processing

    Here are the two most common online payment issues that your company may face – if it hasn't already!

  • Chargebacks
  • A chargeback is a compelled return of money to the consumer, most commonly in the form of a credit card transaction. The action reverses a money transfer from the consumer's bank account, line of credit, or credit card. It is intended to protect customers from electronic payment system fraud. Chargebacks, on the other hand, can be a major issue with online payments. Chargebacks are commonly used to assess a company's health, and a high rate of them translates into lower authorization rates, which essentially means bad business. Merchants are also held liable for chargebacks, which can be costly. Since 2018, forced returns have increased by 179 percent, costing merchants nearly 2% of their total annual revenue. This figure is expected to skyrocket throughout 2020 as a result of the COVID-19 crisis.

  • Integration of Payments
  • With the eCommerce market expanding at an exponential rate, payment processing merchants must keep up with the growing demand for new forms of payment to meet the needs of their customers. If your merchant services provider does not support multi-channel payments, you may find yourself using one vendor for online payments and another for POS payments. The use of multiple vendors can raise both costs and the risk of processing problems. Lack of payment integration may also trap businesses in outdated payment processing platforms with limited capabilities that struggle to adopt new payment methods. Consumers will want new multi-currency options as e-Commerce evolves, and old platforms with limited or no payment integration will be unable to meet their expectations.

  • Conclusion
  • Many factors, including strong marketing campaigns with incentives, enhanced banking infrastructure, and increasing point-of-sale card acceptance, is supporting the expansion of credit card use. Malaysians now prefer credit cards to debit cards by a 4-to-1 margin, indicating that they prefer to use credit lines to make purchases.

    We at PayCly take pride in providing a smooth payment method for our consumers. PayCly provides Payment Gateway Malaysia solutions to merchants so that they can empower their business with supreme payment solutions.

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