What is a 2d Payment Gateway?

What is a 2D Payment Gateway? 

A 2D payment gateway is a payment processing system that verifies card information on two levels before authorizing a payment.  Through this interface, clients can input essential card details such as the card number, expiration date, and CVV (Card Verification Value) code provided by their card issuer or issuing bank. 

Difference between 2D and 3D Payment Gateways 

There are two primary types of payment gateways: 2D and 3D (three-dimensional). Here are the key differences between them: 

• 2D payment gateways typically require only the basic card details: the card number, expiration date, and CVV (Card Verification Value). 

• No Additional Authentication: These gateways do not require additional layers of authentication beyond the basic card details. 

• Higher Fraud Risk: Due to the lack of additional security measures, 2D payment gateways are more susceptible to fraud and unauthorized transactions. 

3D Payment Gateways 

• Enhanced Security: 3D Secure (Three-Domain Secure) adds an extra layer of security by requiring additional authentication from the cardholder. 

• Authentication Step: During the transaction process, the user is redirected to the card issuer’s website to enter a password or OTP (One-Time Password) or use biometric verification. 

• Reduced Fraud Risk: The additional authentication significantly reduces the risk of fraud and unauthorized transactions. 

How 2D Payment Gateways Work

The process of using a 2D payment gateway is straightforward: 

1. Customer Checkout: When a customer decides to purchase on an e-commerce site, they proceed to checkout and select the payment method.  
2. Payment Information: Customers enter their debit or credit card details into the payment gateway interface.  
3. Transaction Processing: The 2D payment gateway processes the payment by sending the card details to the acquiring bank, which then communicates with the issuing bank to authorize the transaction.  
4. Payment Confirmation: Once the transaction is authorized, the payment gateway notifies both the customer and the merchant, confirming that the payment has been completed.  
5. Order Fulfillment: The merchant fulfills the order, delivering the goods or services to the customer. 

Benefits of Using a 2D Payment Gateway 

Simplified Checkout Processes: With 2D payment gateways, customers directly enjoy a seamless checkout experience on the merchant's website. This streamlined process reduces friction by eliminating redirection to external pages and requiring an OTP, leading to quicker transactions and higher satisfaction rates.  

Increased Conversion Rates: By minimizing distractions and friction from 3D payment gateways in checkout, 2D payment gateways significantly reduce cart abandonment rates. This seamless experience encourages customers to complete their purchases, resulting in higher conversion rates for merchants.  

Broader Accessibility for International Transactions: 2D payment gateways support multiple currencies and payment methods, allowing merchants to cater to a global audience. This broader Accessibility enhances the shopping experience for international customers, driving sales growth worldwide.  

Security and Fraud Prevention Measures: 2D payment gateways employ advanced encryption and tokenization technologies to protect sensitive payment information from fraudsters. While 3D payment gateways are more secure than 2D payment gateways, real-time fraud detection algorithms further enhance security, instilling confidence in both merchants and customers in 2D payment gateways.  

Cost-Effectiveness and Convenience: With competitive pricing structures and straightforward integration processes, 2D payment gateways offer cost-effectiveness and convenience for merchants of all sizes. From setup to day-to-day operations, these gateways empower merchants to focus on growth and deliver exceptional customer experiences.