How Does A Payment Gateway Work

How Does A Payment Gateway Work. The card association routes the transaction to the bank that issued the card to the customer. Simply speaking, it is a middleman between your online store and the payment processor that receive payment from your customer.

What Is a Payment Gateway? (And Why You Don't Need One)
What Is a Payment Gateway? (And Why You Don't Need One) from squareup.com

The process begins when a customer places an order on the website by clicking the “submit order” or “checkout” button. The payment gateway takes this information and contacts the bank from which the customer's credit card came from. The card association routes the transaction to the bank that issued the card to the customer.

The Process Of Carrying Out Online Transactions Using A Marketplace Payment Gateway:

How does a payment gateway work? An online payment gateway functions in a more complex manner since it has to handle multiple transactions at the same time originating from multiple payment sources. So, the main role of a payment gateway is to authorize transactions between you and your customers.

Send Requests To Credit Card Providers And Financial.

The processor then forwards this to the customer’s card association, for example, mastercard or visa. How does a payment gateway work? Because the payment gateway is a separate online security portal, none of the payments happens through your website, so everything is fully secure.

The Payment Gateways Works With Your Purchase Items From A Brick And Mortar Retailer.

The customer chooses the product or service they want to purchase and proceeds to the payment page. Payment gateways are the intermediary between your store and your customer. When making an order or purchase, a user enters the necessary payment data, which is delivered to an app payment gateway.

The Payment Gateway Takes Over And Who Encrypts The Credit Card And Other Details Securely.

Payment gateways are typically protected by layers of encryption, ensuring that payments are legitimate before they ever reach the acquirer, which in many cases are banking institutions. The gateways authorize the customer’s payment and encrypt the cardholder information. The customer's bank then checks these details and lets the payment gateway know if the payment should be approved or declined.

The Payment Gateway Sends The Encrypted Transaction Information To The Payment Processor Used By Your Bank (The “Acquiring Bank”).

The basic method by which a payment gateway works can be outlined as follows: Encrypt data between the customer’s browser and your server. A payment gateway is technology merchants use to accept debit and card payments from customers.

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