Payment Gateway and It’s Working

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.

It is difficult to verify online transactions and are mostly anonymous if the buyers are who they say they are. Ecommerce secured payment avoid such type of problems to happen in the future. Merchants need to reduce the online fraud and prevent the security breach of cards or personal data by proactive approach. The best way of preventing is to by using payment gateway.

 

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.