AFFILIATES FOR MERCHANT ACCOUNT PAYMENT GATEWAY

A Merchant account Payment Gateway is an e-commerce business service provider which authorizes payment solutions for various types of businesses. It is similar to accepting cash in retail businesses. However, the difference is it helps in making credit card transactions ensuring the security of the transaction by encrypting information like: credit card numbers, etc for a smooth connection between a customer and merchant and between merchant and payment processor. If you have a business but don’t have an online merchant account, ask for your provider to make the business online and provide with merchant account payment gateways to start making transactions online.

The working of a merchant account payment gateway is given below:

A merchant account payment gateway actually services for the transfer of payment details between the merchant and the provider bank or a customer and the merchant. When a customer makes a purchase through the shopping cart of an online merchant, the payment gateway performs the following tasks to complete the transaction.

·         First of all, a customer shops for a product from an online merchant, by clicking the “Submit Order” button or entering his card details for processing with the transaction.

·         If the payment is via a website, the customer’s webpage encrypts the information details to be sent to the merchant’s server, which is done through SSL encryption technique.

·         The merchant, when he receives the payment details, further forwards it to the payment gateway server, to encash the transaction.

·         The role of the merchant account payment gateway now comes into limelight, as it functions to pass the transaction information to the issuing bank’s processor like: third party processor and credit card processor which then further intimates it to the credit card issuer.

·         Depending on the type of card used for the transaction, the information is passed to the issuing bank of the card to process the transaction.

·         The credit card issuing bank also acknowledges the receipt of the payment, after ensuring that it is valid by checking all the transaction details through the merchant account payment gateway.

·         Thus, the payment gateway provides a flexible and secure means of communication for any e-commerce business applications by acting as a route to process all transaction processing. After, an acknowledgement is received from the issuing bank; a response is forwarded in the website which is the effective mode of interface for both the card holder and the merchant.

·         The merchant can than ship the transactions, before settling down with the payment made in the issuing bank. The entire process of the transaction takes only a few minutes to complete.

There are many payment gateways which also provide tools to screen the transactions made through the processors for any fraud, or function to calculate tax before the authorization request is sent to the processors. There are a number of tools to detect fraud in a transaction. They are: velocity pattern analysis, morph detection, finger printing technology and delivery address verification, etc.