Unlike the retail counter where customers pay the bill face to face by swiping the cards in PDQ machine, buying online requires submitting details to a credit card terminal on the website. If you are an eCommerce store owner than to receive payments online you would surely need a secure payment gateway that isn’t just convenient for you customers however is hasty to transact the money in your account.
In simple words online payment gateway is like connecting link or the middle link between merchants and their acquiring banks. In the same manner as the PDQ machines securely handle and process credit card details of the customers likewise payment gate safely validate and authorize customer’s card details while shopping online.
Your payment gateway works as the communicator between your website and the acquiring bank in order to conduct the flow of information between the two. Whether you wish to take payment by cards, phone, post or fax, you would require having a payment gateway enabled merchant account for carrying out the transaction. Let’s see how all this works:
As soon as the customer buys goods from your website, they enter their card details to process the transaction. Followed by this, the sensitive details are encrypted by customers’ web browser before being exchanged between the browser and web server of the merchant via SSL encryption (secure socket layer). Payments gateway tokenizes this information and sends it to merchant’s acquiring bank followed by which the response whether ‘approved’ or ‘declined’ is sent to the payment gateway by the processor. The payment processor takes this information of transaction to card association, which then directs it to card issuing bank. Now the authorization response is forwarded by the processor to the payment gateway.