Basically, a payment gateway is an online approach wherein you make transactions through the web and this is the method of paying using your credit card. This is how it usually works: First, customer chooses and submits an order with his credit card details, second, this order is sent from the browser to the merchant’s web page followed by the payment gateway, the acquiring bank then to the card association, third, authorization from the issuing bank or card association is directed back to the card owner and merchant in a series of transmissions, and last, merchant presents the approved requests to the acquiring bank for the final arrangement
Merchant account providers like Capital Merchant Solutions Inc and the likes have been using a marketing strategy utilizing the Internet or other computer networks that allows fees to be paid online for online-based selling. It is what they called payment gateway. Payment gateway guarantees the customers’ security regarding its credit card details. It is to make certain that the data passed from the purchaser to the retailer stays between them and it also involves the privacy between the retailer and the payment processor. A payment gateway may also include transactions made over the phone or the Interactive Voice Response (IVR) amenity. To understand more of this service, here are the steps on how it works:
Step 1: Customer chooses and submits an order with his credit card details
This is done via Internet or an automated receiver answering machine. The purchaser decides on what to buy in an online catalogue. Once he decides on this, he clicks the “Submit Request” button or something of the same function. If ever that retailer site has a phone number, then you may order in this manner.
Step 2: Order is sent from the browser to the merchant’s web page followed by the payment gateway, the acquiring bank then to the card association
The information of the order of a customer is being put to a code which will be transmitted to the retailer’s hands. This will be processed and then forwarded to the payment gateway. After this, the order details will be sent off to the processor of the acquiring bank. Finally, the transaction info is sent to the card association. All of these processes are carried out via SSL (Secure Socket Layer) encryption that guarantees security for transactions over networks like the World Wide Web.
Step 3: Authorization from the issuing bank or card association is directed back to the card owner and merchant in a series of transmissions
If the credit card you obtain is an American Express or Discovery Card, a reply of approved or declined will be sent directly to the payment gateway. If not, then the card association directs the deal to the appropriate card issuing bank. The issuing back receives the approval request. This will then be sent back to the processor with the reason why the payment failed if it was actually declined. The processor passes on the received authorization to the payment gateway which will be transmitted to the site where it is revised to a response for the card owner and the merchant. The whole procedure more often than not, takes 2-3 seconds.
Step 4: Merchant presents the approved requests to the acquiring bank for the final arrangement
The online seller sends only the approved authorizations to their acquiring bank for settling the order. The whole transaction beginning from the approval to settlement and lastly, the subsidy or funding usually consumes 3 days.
Without a doubt, consumers who are deciding whether or not to purchase online, has a slight hesitation for the safety of their money. The payment gateway of every cyber business ensures you the well-being of your chosen transaction. But before crossing the threshold of Internet buying, it is advisable to ask friends to know what websites are trusted for their out-of-harm’s-way means or practice.