What is Payment Gateway? Do You Know How to Pay Online

 

Payment Gateway: -

Payment Gateway is an e-commerce service that processes the payment of credit cards for online and mortar stores. Web gateways, such as Payment Gateway, facilitate these transactions by transferring important information between web devices / websites and front end processor / bank. The payment gateway plays an important role in the e-commerce transaction process, allowing payment between the merchant and the customer.

Popular payment gateways include PayPal, CC Avenue, PayU, EBS, VISA and Master Card. The Payment Processor analyzes and transmits transaction data. Whereas Payment Gateway authorizes fund transfer between buyers and sellers.

How Payment Gateway works: -

When a customer orders from an online store, the Payment Gateway performs several tasks to finalize the transaction:

Encryption - The web browser encrypts that data to be sent between you and the vendor’s web server. Gateway then sends the transaction data to the payment processor used by the vendor’s acquiring bank.

Authorization Request - Payment Processor sends transaction data to a card association. The issuing bank of the credit card sees the authorization request and "approves" or "denies" it.

Filling the Order - The Processor then forwards the Payment Gateway to the merchant and consumer related authority. Once Gateway receives this response, it broadcasts to the website / interface for payment processing. Here, it is interpreted and an appropriate response is generated. It seems that this is a very complicated and long process but usually takes more than a few seconds.

Clearing Transactions: -

The above steps are repeated to finish the transaction. An attempt is made to "clear" the authority by repeating the above steps by closing the transaction. However, the transaction ends only once the merchant actually completes the (order shopping) transaction. The issuing bank converts "auth-hold" into debit, allowing the seller to "settle" with the acquiring bank. The processor is then trusted to organize all the approved authorizations of the vendor with the acquiring bank at the end of the day.

Other functions of Payment Gateway: -

Screen orders also help with Payment Gateway accessories. This screening process reduces fraud as much as possible. Gateway fraud detection tools include: -

• Delivery address verification
• AVS checks
• Computer finger printing technology,
• Velocity pattern analysis
• Identity morphing detection
• Geolocation

Payment Gateway also calculates tax amounts to authorize requests transmitted to the Processor.