One of the important things to note about
the online information is the payment verification and the transfer requests. Another
thing is the certification of the credit cards in real time. For all these, one
needs something called the payment
gateway. There are companies existing in the market offering the Gateway to
the small business. The main importance
of payment gateway for technical support and various other
businesses is the transaction approval, protecting them using the encryption and
preparing orders before processing. The gateway
holds responsibility that the customer has sufficient funds or credit that is
to be paid for transaction. Upon the approval, it can submit results to the credit
card processor so that the merchant will b e paid.
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When
transaction takes place, payment gateway executes multiple functions between
merchant, customer and bank. An order is submitted via your website or credit card details are
received from an “IVR” service.
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Using SSL
(Secure Socket Layer) encryption, the order information is encrypted and sent
from the customer’s browser to the merchant’s server, often encrypted again,
and sent to another server hosted by the Payment Gateway.
·
This
information is then sent to the merchant’s “acquiring bank” and forwarded to
the customer’s issuing bank for confirmation. Depending upon the result, the
card issuing bank will send either an approved or denied message back to the
business’ website.
·
The
acquiring bank forwards transaction information to the bank that originally
issued the customer's credit card to obtain authorization.
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The card
issuing bank returns a response to the payment gateway or receiving bank via a
response code. The card is either approved or denied and a response code is
provided to explain the reason for denial if this should occur.
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The
payment gateway sends the response to the web site or other interface, where an
'Approved' or 'Denied' response is given to the customer. Typically, this only
takes a few seconds.
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Usually,
acquiring banks will wait until the conclusion of the day to deposit a total
amount of confirmed funds into a merchant’s account, whether it be an account
with the acquiring bank, or a completely independent account.
The main advantage with the advanced gateways is
that they can provide the complex packages that contain the tools for example
shopping cart. One can invest the money in a gateway and some important factors
are features, cost and reliability.
