Why Payment Gateways on Travel Websites Are Crucial for Online Bookings
Have you ever found yourself using a travel website to book that dream vacation, score a great deal on flights, or secure an exciting tour? We've all been there!
For the typical traveller, you might not know how important it is for these travel websites to offer instant, hassle-free payments in order to book that exciting holiday.
Let’s just say that it is absolutely essential! When it comes to finalising your travel plans and making that payment, travel websites and users want it to be quick, simple, and, most importantly, secure.
So, how exactly do these payments on travel websites work? It all happens through integration with secure third-party payment gateways.
Payment gateways on travel websites serve as a crucial link between you and the travel website when making online bookings. They play a significant role in approving electronic transactions and securely transmitting payment information between your financial institution (like your bank or credit card company) and the travel website.
In this article, we’re exploring how payment gateways on travel websites work and how they can make your booking experience as smooth as a tropical breeze.
WHAT IS A PAYMENT GATEWAY?
First of all, before we explain how we develop integrations between travel websites and payment gateways, it’s important that we tell you a little bit about what a payment gateway is.
If you have ever wondered how you can easily make online payments on some of your favourite websites, you can thank payment gateways. So, what are payment gateways, and how do they actually work?
Simply put, a payment gateway acts like a virtual cashier that assists businesses in accepting online payments from their customers. When you make an online purchase, you enter your information into the website, which is then encrypted and securely sent via API to the payment gateway, where it is processed and transferred into the merchant's bank account.
THE IMPORTANCE OF SECURE ONLINE BOOKINGS
Imagine that you’re planning your ultimate holiday and you find an amazing travel website. Excitedly, you get ready to whip out your card and book the trip, but hold on! We should discuss why secure online bookings are important and how they play a role in protecting your sensitive information and gaining your trust.
Secure online bookings are essential for building customer trust. If you know your information is safe and you're ready to set sail on a smooth holiday, you'll probably use that travel website again for your next trip.
This is where encryption and security which we mentioned comes in. These measures fight off hackers who try to steal your personal information and card details.
A secure payment gateway isn’t the only thing a travel website needs to ensure that their online bookings are secure. Travel websites should also make sure that their actual website is secure! This means using a secure connection like HTTPS and having a valid security certificate. Secure online bookings aren't just about fancy technology and encryption codes; they're about building customer trust, instilling confidence, and making your travel dreams a reality.
TRAVEL WEBSITES AND PAYMENT GATEWAYS
Let’s talk about travel websites and payment gateways. When you book trips and tours, there are two ways in which the travel website can handle your payment.
- The first way is to redirect the payment to the payment gateway. It is easier to incorporate into the travel website but lacks a good user experience.
- The second way is to integrate the payment gateway with an API. This is more complex than redirecting the payment, but it is much better for the user’s experience and brand reinforcement.
After authorisation, the money is transferred, and voila! The travel website usually sends you a confirmation of payment as well as your tickets. Just like that, you can start packing your bags for your trip.
SELECTING THE RIGHT PAYMENT GATEWAY
It’s time to switch things up! If you are setting up a travel website, the payment gateway you choose to integrate is going to be an essential part of your business.
There are a plethora of payment gateways available, and each one has its own pros and cons. Here are some factors to consider when choosing a payment gateway for your travel website:
1. SECURITY
Security is one of the most important factors to consider when choosing a payment gateway. Make sure the gateway you choose uses strong encryption and other security measures to protect your customers' data.
2. SUPPORTED PAYMENT METHODS
You'll need to choose a payment gateway that supports the payment methods your customers want to use. Most gateways support credit cards, but some also support PayPal, debit cards, and other payment methods. You should also consider which currencies are supported by your payment gateway. International payment gateways like PayPal and Stripe don’t support local currencies.
3. TRANSACTION FEES
Payment gateways typically charge transaction fees for each payment they process. These fees can vary depending on the gateway and the type of payment method used.
4. INTEGRATION OPTIONS
Make sure the payment gateway you choose integrates easily with your travel website. You don't want to have to spend a lot of time and effort integrating the gateway into your website. You should also consider options that offer subscription-based payments if that is what you require for your travel website.
5. MERCHANT ACCOUNTS
You should consider whether the payment gateway you choose acts as a merchant account on your behalf. Businesses need both a merchant account and a payment gateway to process online payments, so you could save time and money by choosing a payment gateway that also fulfills this requirement.
PAYMENT GATEWAY INTEGRATION PROCESS
Now that you know what payment gateways are and why they are integral to your travel website, let’s chat about how web development teams like ours actually integrate them. These are the basic steps. We’ll cover the technical aspects that we consider next.
1. PICK A PAYMENT GATEWAY THAT SUITS YOUR NEEDS
There are numerous payment gateways available, so choosing one that meets your needs is critical. Consider the types of payments you want to accept, the fees involved, and the level of security provided.
2. SIGN UP FOR A MERCHANT ACCOUNT
A merchant account is a type of account that lets you accept credit and debit card payments. You'll need to apply for a merchant account with a bank or payment processor. Sometimes payment gateways may act as the merchant on your behalf, so you don’t need to sign up for a merchant account.
3. GET THE API CREDENTIALS
Once you have signed up with the payment gateway, you'll need to get the payment gateway to send you the API credentials for both the live and sandbox sites. You'll need these credentials to integrate the payment gateway into your website, which is another security verification method.
4. INTEGRATE THE PAYMENT GATEWAY INTO YOUR WEBSITE
Payment gateway integration is typically done by a web development agency, which writes custom code to complete this type of integration. This process will differ depending on the payment gateway you select and the programming language in which your website is written. However, the majority of payment gateways offer detailed documentation that can help in the integration process.
At Elemental, we’ll program the API to make a call to temporarily reserve the booking. The user will be redirected to the payment page, which can either be off of the travel website or an embedded integration. Once the payment is successful, we do one last API call to finalise the booking.
5. TEST THE INTEGRATION
It's crucial to test the payment gateway after the web development company has integrated it into your website to make sure everything is running smoothly. Luckily, if you work with us, we’ve got you covered with QA (quality assurance) testing. All of our custom-built travel websites are expertly tested by our team of QA testers.
TECHNICAL ASPECTS OF PAYMENT GATEWAY INTEGRATION
1. API DOCUMENTATION
The payment gateway will provide API documentation outlining the various functions and methods available. This documentation will be required for the payment gateway to be integrated into your website.
2. AUTHENTICATION METHODS
The payment gateway will use a variety of authentication methods to verify the identity of your website and its users. Often, these authentication methods include username/password authentication, 3-D Secure, and SSL certificates.
3. SERVER-SIDE SCRIPTING
The payment gateway must be integrated into your website using server-side scripting. The specific scripting language you'll use will depend on the programming language your website is written in.
In reality, these steps aren’t as simple as we make them out to be, which is why it’s vital to work with a web development team that can integrate a payment gateway into your travel website for you to effortlessly accept online payments from your customers.
STRIPE, PAYPAL, AND SOUTH AFRICAN PAYMENT GATEWAYS
At Elemental, we make dream vacations come true for the travellers who use our clients’ custom-built travel websites by integrating super-secure payment gateways into their websites.
Paypal and Stripe are our top picks for sophisticated and secure payment gateways on travel websites
Stripe is a popular payment gateway that accepts credit and debit cards. It offers a variety of features, including fraud protection and recurring billing.
PayPal is another well-known payment gateway that accepts credit and debit cards, as well as PayPal payments. It's simple to use and integrates with the majority of travel websites.
The downside to these payment gateways is that they don’t accept local currency, which is why most South African travel websites opt for local payment gateways like Peach Payments, Yoco and Payfast. You can check out all the payment gateways we work with when developing custom eCommerce and travel websites here.
After you've considered all of these factors, you can start comparing different payment gateways. Read reviews, compare features, and check pricing from different providers before making a decision.
Your travel website's security and your customers' ease of payment processing can both be improved by picking the right payment gateway.
USER EXPERIENCE AND SEAMLESS CHECKOUT
Any online transactional business needs a seamless and user-friendly checkout process because it can increase conversion rates and boost customer satisfaction. So, instead of redirecting to the payment gateway (which is a bad experience but easier to implement), a website can keep the user on the website and have the user complete the entire process on the website, with the APIs and custom integration doing the heavy lifting.
KEY BENEFITS OF A WELL-INTEGRATED PAYMENT GATEWAY
1. CONVENIENCE
Customers can pay for their purchases more easily with a well-integrated payment gateway. This is possible with features such as one-click payments and saved payment methods. This creates a better user experience for the customer.
2. RELIABILITY
A reliable payment gateway shouldn't experience downtime and should be well integrated. This is crucial for companies that want to offer their clients a smooth checkout process.
3. SECURITY
To protect customer data, a well-integrated payment gateway should employ the most up-to-date security measures. This can help to build trust and confidence with customers, which can lead to increased sales.
TESTING THE PAYMENT GATEWAY
When a web development agency is building a bespoke travel website for your travel agency, it is necessary to do rigorous testing to ensure the integrity of the payment gateway because of the sensitive financial data that’s on the line. Hackers can exploit any security vulnerabilities and commit fraud or steal your customers’ sensitive information. A payment gateway integration can be tested in a variety of ways to ensure its functionality and security:
1. SANDBOX TESTING
Sandbox testing is a type of testing that is done in a controlled environment. This lets developers experiment with the payment gateway without affecting live data.
2. SIMULATED TRANSACTIONS
Simulated transactions are a type of testing that uses real data but does not actually process the transactions. This makes it possible for testers to confirm that the payment gateway is properly handling transactions.
3. PENETRATION TESTING
Penetration testing is a type of testing that is done by security experts. Penetration testers try to exploit security vulnerabilities in the payment gateway in order to gain unauthorised access and then fix these vulnerabilities to avoid real hackers.
Travel websites can help ensure that their payment gateway integration is secure and that customer data is protected by carrying out a variety of different types of testing.
Additionally, travel websites should regularly audit the security of their payment gateway integration in addition to testing it. If any vulnerabilities were missed during testing, these frequent security audits can help find and fix them to keep your users safe.
OUR EXPERIENCE IN DEVELOPING PAYMENT GATEWAYS INTO TRAVEL WEBSITES
We’ve developed many custom travel websites over the years. One common requirement for these websites has been the integration of payment gateways, which allows travellers to conveniently book and pay online. This integration has greatly improved the user experience and sped up the booking process for our clients.
The scope of these integrations has varied depending on our clients' specific needs. So, in some cases, we've implemented simple one-time booking and payment functionalities. This means that travellers can choose their preferred flights, accommodations, or travel packages and only make a single payment to secure their booking.
We've also come across more complex scenarios involving multiple payments. For instance, in some travel transactions, travellers may have the option to make a partial payment at the time of booking. This lets them secure their travel arrangements while paying only a portion of the total cost upfront, typically in their customer portal.
As travellers' departure dates approach, our custom travel websites often feature a secure customer portal. Through this portal, travellers can access their booking details and make additional payments if required. The payment gateway continues to play an important role in securely facilitating these subsequent transactions.
Throughout all of these payment gateway integrations, our top priority has been to provide a seamless and secure experience for both travellers and our clients. Our goal is to create a user-friendly environment in which travellers can book their travel arrangements with confidence and easily and securely make payments.
LET'S FINISH UP HERE
The use of secure payment gateways for online bookings is, therefore, one of the most important components of travel websites. By making sure customer transactions are secure, travel businesses can foster trust, protect sensitive data, and provide a seamless booking experience.
In the ever-evolving world of online travel bookings, adopting secure payment gateways is not only a necessity, but also a competitive advantage. Giving your customers the ability to process online payments in real-time can drastically increase sales as well as customer satisfaction and loyalty.
We are an experienced custom web development agency, specialising in developing custom websites and web apps for the travel industry, among many other industries. We’re driven by innovation, and we’re passionate about building bespoke solutions that address our clients' unique needs.
Have a travel web project you want to talk to us about? Get in touch, as we’d love to understand how we can help you.
