A Very Beneficial Option For Transactions

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.

·         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.

·         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.

·         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.

·         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.

·         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.