payment gateway services
Payment gateway is a service provided by third party service provider who acts as a proxy between business, consumer and bank. It also acts as a gate keeper for all the electronic payments by preventing and detecting fraud, by funneling payments to business bank account. It helps in secured payment transaction by encrypting it's information while transferring from the consumer to the merchant and then from the merchant to the processor.
How Payment Gateway works
> An order is placed on a website, the web browser encrypts the payment information and sends it to the merchant's web server via SSL(Secure Socket Layer) encryption.
> The merchant then transfers the information to the payment gateway server via another SSL.
> The information is then processed by the payment gateway to the merchants acquiring bank.
> The merchant's bank then passes the details to the card issuing bank.
> The card issuing bank sends back a response(accepting or declining) to the payment gateway.
> The response is then forwarded by the payment gateway to the merchant's server who in turn encrypts it and sends it to the customer which allows the customer to know if the transaction is successful or not.
> The entire process takes about 5 seconds. At the end of the day the card issuing bank deposits the amount in the merchant's account.