WORKING OF A INTERNET PAYMENT GATEWAY

An Internet payment gateway allows us to process credit card transactions in our own website. Thus, the customer making the payment is well aware of if his transaction is processed or not. Before using the payment gateway, a shopping cart is used. It is actually a service which allows customers to choose from a variety of products and pick the one which they want to purchase from the website. It provides a variety of options for the customers to select like size, colour etc. At the billing page, the shopping cart totals the items adding up the tax and shipping and stores the billing and shipping information of the customers.

The payment gateway holds the credit card transaction, then encrypts the transaction information and then routes the details to the credit card processor and acknowledges the customers with an approval or decline statement.

The payment gateway is a confined and secure process, as the transaction details are forwarded to the gateway via the shopping cart, and the actual working is hided from the customers.

 However, there are three primary things that should be taken into account when an online payment gateway comes into picture after a customer uses a website for purchasing products using credit card or debit card. They are: Authorization, setting and reporting.

Authorization

Any transaction made by with credit or debit card through a payment gateway should first be authorized by the card issuer. The payment gateway then checks the availability of the card by verifying if it is acceptable. The gateway ensures a fast and secure payment transaction by making a link between the customer and his transaction.

Settling

After verifying the transaction, the Internet Payment Gateway sends the details to the associated bank. After processing the transaction to the bank, the merchant receives the payment electronically deposited in their bank account. This process is called settling.

Reporting

This process is used to record all the transactions made so that we can review, print or download them to computer to check the details whenever necessary.

Unlimited Users

An unlimited number of users can use the payment gateway at the same time to make transactions as opposed to other terminal or software solution, in which only customer can process transactions at a time. Besides, they provide the facility of making transactions from different locations at the same instance. An use license fee comes with a payment gateway.

Fraud Screening Tools

Internet gateway service offers a tool called fraud screening to take notice of fraud transactions. This involves verifying address and card code value(CCV) to ensure that the payments made are valid. Besides, it also takes care of storing the transaction details in the gateway rather than the website itself.

Other Benefits

Payment gateways also offer other types of benefits. They are: They provide a virtual terminal, where the merchant is made to manually enter the transaction details that they receive. This is used for taking orders through phone or mail. Besides other benefit includes a 24 hour email support and technical support for the customers.