The payment gateway is the most equivalent of a point of sale (POS) terminal found in many retail stores. It can authorize software payments system for a myriad of much more businesses such as online stores and businesses and brick and mortar stores. It is a service that serves as an intermediary in between the shopping cart, the merchant, and the financial institutions. This will include the buyer’s credit card issuer and the seller’s acquiring bank. Then the transfer of information always takes place over a secure connection (SSL) and the shopping carts are configured accordingly to send the information in a specific format for a gateway system.
How Does A Gateway Function?
The payment gateway starts to transfer the information from the payment portal that can be a website or a mobile phone or interactive voice response service to the bank or Front End Processor. Here is an intelligent overview of the process:
- After entering his credit card number information, the customer will click on the “Place Order” or similar button that display on a website.
- The information will be securely transferred from the website to the merchant’s webserver via SSL encryption.
- This key information is then forward securely to the payment gateway system.
- The payment gateway puts forward the entire data or information to the payment processor that is used by the merchant’s acquiring bank (the bank where he has a merchant account).
- The payment processor will forward the information to the appropriate card company (Visa, Master Card, etc) and at that point will be routed again to the credit card’s issuing bank. The processor acts as the issuing bank for Discover Card or American Express.
- After that a response is sent back to the payment gateway as to check whether the transaction was rejected or accepted.
- The payment gateway send forwards the response to the website. This entire process takes only 2 to 3 seconds.
- Once all the funds are accessible then money can be transferred from the merchant account to a business account.
Many of the gateway service providers will provide the tools which can detect fraud to include verifying the delivery address and geographic location of the buyer. They can even also calculate the taxes before the request for authorization is sent. Most payment gateways provide an information screen for inputting data.
Whether you sell the products or services online, this is one of the things you require to accept credit card payments. Most service providers always include the capability of accepting e-checks so that the customers will have the option of using their checking account.
You can find payment gateway solutions and other e-Commerce solutions at Alalam Solutions http://alalam-solutions.com/technology/ . There you will find each and everything that you will require to make your online business for a great success.