The hike in technology and availability of advanced features enable the users to access anything from anywhere. Due to such things demand of online web market and responsive web designs in smartphones have also increased. People like to approach and buy things in a single click. The e-commerce platform provides online access to all businesses like banking, real estate, food, textile etc. The usability increased the demand of payment gateways for online payments through bank cards and website development companies also take proper care while integrating these gateways to client websites.
A payment gateway is a software based e-commerce service which is used to facilitate communication between banks by transmitting transaction information to acquiring banks and responding to issuing banks. It processes credit card payments online, it facilitates these transactions by transferring key information between payment portals like web-enabled mobile devices to front end processor banks. it assists the progress of communication between banks.
Security is the integral component of the payment gateways, as sensitive data like credit card number and details need to be protected from fraudulent beings and parties. To serve the facility, the card association have created the rules, regulations and security standards which must be followed by anyone with access to card information including gateways. Such set of rules and regulations called payment card industry data security standards (PCI-DSS or PCI).
An order submission is completed by using HTTP protocols, which helps in securely communicating personal information through the parties indulge in a transaction. Except providing real-time transaction these, service providers can also help to translate currencies between two countries, bridge language, and payment methods well. For each transaction, payment gateways charge them.
Payment gateways play an important role in the e-commerce transaction process, authorizing the payments between merchants and customer. Payment gateways may be provided by different bank services but it can also be provided by specialized financial service providers. The popular payment gateways are PayPal, Braintree, Stripe, Square etc.
Payment gateways: Payment gateways authorizes the transfer of funds between buyers and sellers.
Payment processors: Analyzes and transmits transaction data.
The role of payment gateways:
When a customer places an order to buy a certain thing from an online store, to finalize transaction the payment gateway performs various tasks:
The web browser encrypts data which will be sent to it and the web server of a vendor. Then the gateways send transaction data to the payment processors utilized by vendor’s acquiring bank.
The payment processors send transaction data to a card association then the credit card issuing bank views the authorization request and either approve or deny.
Filling the order
The processor then forwards an authorization pertaining to the merchant and consumer to the payment gateway. It transmits it to the website or interface to process the payment.