A payment gateway is the equivalent of a point of sale terminal present in retail stores. It may possibly authorize payments for a myriad of businesses, together with online stores and businesses and brick and mortar stores. It’s a service that acts as an intermediary between the shopping cart, the merchant, and the financial institutions. This will embrace the buyer’s credit card issuer and the seller’s acquiring bank. The switch of data takes place over a safe connection (SSL) and shopping carts are configured to ship info in a certain format for a particular gateway.
How Does A Gateway Function?
The payment gateway will switch data from the payment portal, which can be a website, a mobile phone, or interactive voice response service, to the bank or Entrance End Processor. Right here is an overview of the process:
1. After entering his credit card number information, the client will click the “Place Order” or related button on a website.
2. The information will likely be securely transported from the website to the merchant’s webserver by way of SSL encryption.
3. The data is then sent securely to the payment gateway.
4. The payment gateway forwards the information to the payment processor that’s used by the merchant’s acquiring bank (the bank the place he has a merchant account).
5. The payment processor will send the knowledge to the appropriate card company (Visa, Master Card, and so forth) and at that time might be routed again to the credit card’s issuing bank. The processor acts because the issuing bank for Discover Card and American Express.
6. A response is shipped back to the payment gateway as to whether the transaction was declined or accepted.
7. The payment gateway forwards the response to the website. This whole process takes only 2 to 3 seconds.
8. As soon as all of the funds are available, money may be switchred from the merchant account to a enterprise account.
Other Providers
Most of the gateway service providers will provide tools that may detect fraud which contains verifying the delivery address and geographic location of the buyer. They might additionally calculate the taxes before the request for authorization is sent. Most payment gateways provide an information screen for inputting data.
In case you sell products or providers on-line, this is among the things you have to accept credit card payments. Most service providers embody the capability of accepting echecks so the shopper has the option of using their checking account.
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