Payment gateway

Introduction

A payment gateway is an interface used by merchant to accept debit or credit card transactions for the purchases of goods and services made by customers.

A payment gateway is a digital service that simplifies protected and encrypted transactions between a merchant and their bank after a purchase is made. t’s the link that allows the transfer of funds from the customer’s favored payment method. This payment gateway technology not only receives transaction in physical format but also in online format also. Payment can be made via credit card, debit credit, mobile devices, cryptocurrency, digital wallets, and many other services.

 In physical stores, they consist of the point-of-sale (POS) terminals used to accept credit card information by card or by smartphone. In online stores, payment gateways are the “checkout” portals used to enter credit card information or credentials for services. While paying online, payment gateways generally charges some fees for each transactions. A payment gateway is primarily designed for online transactions, mainly support to ecommerce websites, mobile applications, and other digital platforms.

How does it work?

Payment gateways charges some amount on each transactions. Some may be free. Payments gateway such as google pay, apple pay, mastercard, paypal, stripe, square may charges some amount during transaction. First payment gateway collects the customer’s payment information. Such as their name, credit card number, etc. As you enter the payment button the gateway security transmits the encrypted payment information to the payment network. Now the information is verified and authorized.

It sends an authorization request to the payment network, requesting approval to process the payment. Items such as the billing address and the card security code (CVV) can also be verified by the payment network. The gateway transmits the response from the payment network back to the merchant’s website or application notifying them if the transaction was successful or not. If the details are entered correctly the payment is successful else the payment is declined.