Online payments is the fast and convenient
process for users and settle their payments. This type of payment can be
reached globally with the help of internet and everyone can sell or buy around
the world.
What is
Payment Gateway?
Payment gateway is an Ecommerce application
that authorizes online payments. It is used by online merchants, E-businesses
and bricks and mortar businesses. It connects seamlessly and securely to
Ecommerce applications or in-house payment application. It is used to process
credit Cards or online banking.
Payment gateway is a third party in between the
customers and the merchants as it collects the money from the customers and
transfers it to the merchant’s bank account securely. It is virtual equivalent
of a physical point of sale terminal that can be seen in many retail outlets.
How
Payment Gateway Works?
An important role is played by the Payment
gateway that fulfills Ecommerce transaction processing and authorizing the
payment or transactions that are been done in between customers and merchants.
Sensitive information and payment details such as credit card details are
encrypted by the payment gateways. It has to guarantee that the information is
passed securely in between customer and merchant. The following are the steps
that on how a payment gateway works.
Step1:
An order is placed by the
customer on the website that they visit by pressing the submit order, checkout
cart or any equivalent button.
Step2: Information is transferred by
the merchant securely to the payment gateway. Thereafter the transaction is
been routed the issuing bank by the 3D secure page and request transaction
authentication.
Step3: Once the authentication process
is verified and successful then the transaction is been authorized or declined
(depending on the available amount in the bank) by issuing bank or the card
provider.
Step4: Payment gateway sends a message
to the merchant
Step5: The bank or card provider
settles the money with the payment gateway and then the payment gateway settles
the money with the merchant.
There are three important things to do while
using a payment gateway provider when a customer wants to make a purchase from
merchant’s website. The three important things include authorization, settling
and reporting. It all can be done by the best magento development company uk.
Merchants are also provided with
benefits such as virtual terminal by payment gateway providers that allow
entering transactions manually that are received via other methods besides
merchant’s website. It can out the control of business acceptance in your hands
and raising the power to grow your business.