An Online Payment Gateway serves as a portal to facilitate online transaction flow between the customers and merchants. It uses safety protocols and encryption to permit the transaction data safely. The data is moved from websites or mobile devices to payment processors and banks.
The online Payment gateways can perform the following transaction types:
- Better Authorization – It is a type of transaction which is used to check if a customer has sufficient funds to pay. It does not comprise real money transfers. In its place, during authorization, a merchant guarantees that a cardholder is capable of paying for the ordered item. An approval transaction is used for orders that take time to manufacture.
- Capture process – This is the actual processing of an earlier authorized payment resulting in funds being sent to the dealer’s account.
- The Sale – This is a combination of approval and capture transactions. A cardholder is initially authorized and then funds may or may not be taken. It is a steady payment for instant purchases, like subscription purchases, or some e-tickets.
- The Refund process – This is the result of a canceled order for which a business will have to apply a refund payment dispensation to return the money.
- Void – This is similar to a refund but can be done if funds were not yet taken.
The Payment processing flow in the online gateway
The substructure of Online Payment Gateway is a little bit more complex than you may imagine. For the customer, it is represented by a minor window, or a distinct website, where they have to pass in the checkout. But really, processing involves numerous financial institutions, verifying the data on both ends, and letting the customer finish the purchase in a few seconds. When a client checks out by passing the card number, expiry date, and CVV which is a payment gateway that has to perform several tasks and it takes about 3-4 seconds.
The Customers – A customer presses the “Purchase” button and fills in the essential fields to pass the transaction information. The data is encoded and sent to the merchant’s web server through an SSL connection.
The Merchant and the payment gateway – After the transaction information is received, a merchant passes it to the payment gateway through another encrypted SSL channel. If any data is kept by a payment gateway, it is settled in a precise type of secured storage. Usually, gateways do not store real credit card numbers, but rather they save tokens.
The Payment processors – The data goes to payment processors. These are the businesses that provide payment processing facilities as third-party players. Payment processors are linked both with a merchant’s account and with a payment gateway, moving data back and forth. Now a payment processor is passing the operation to a card network. The character of a card network is to confirm the transaction data and permit it to the issuer bank.
The Issuer bank – The issuer bank accepts or denies the approval request. In response, the bank sends a code back to the payment computer, which comprises the transaction status details.
The Payment gateway – The Transaction status is refunded to the payment gateway, then it will be passed on to the website. A customer obtains a message with the transaction status through a payment system interface. Within a couple of days, the funds are moved to the merchant’s account. The transaction is achieved by the issuing bank to the receiving bank. An easy-to-integrate Check out with cards is kept across businesses so that your customers can pay flawlessly everywhere.
A very Powerful Dashboard – Get all the reports and detailed statistics on payments, refunds, and much more for you to make better decisions. This is Built for Developers as it is robust, developer-friendly APIs, and libraries for all main languages and platforms that focus on building great products. It has Robust Security as it is compliant with frequent third-party audits and a devoted internal security team to make certain your data is always safe
It is Easy to Use – We comprehend that when it comes to managing payments, speed and ease of use are what matter.
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