Payment Gateway Integration Services

Payment Gateway Integration Services

As per the Wikipedia, A payment gateway is a merchant service provided by an e-commerce application service provider that authorizes credit card or direct payments processing for e-commerce, online retailers, bricks and clicks, or traditional brick and mortar businesses. It’s basically a conduit between an E-commerce website and the bank that authorizes a customer’s card payment. The main role of a payment gateway is to authorize transactions between you and your customers. A payment gateway facilitates the transfer of information between a payment portal and the front end processor.

The gateway process follows these steps.

• Step 1: The customer places an order and enters their payment information. Once this info has been submitted, it is encrypted and then sent.
• Step 2: The encrypted data is first sent to the merchant’s processor. The processor is simply the company that actually processes the transactions.
• Step 3: The processor then routes the transaction data to the credit card association. These card associations charge an ‘interchange fee’ for each transaction.
• Step 4: On this step, the transaction is approved or denied. The card should have enough funds and should be valid for further process.
• Step 5: Once the transaction is authorized, the issuing bank then transmits the authorization back to the parties in the payment processing network. Finally, the process makes its way to the e-commerce site from where the process initiated.