In an era when online shopping and marketing has been vital in promoting a product and being consumer friendly, it is noteworthy to know it is impossible without online payment gateways.

We know that a lot of transactions take place via Payment Gateways, for those who don’t know about Payment gateways:

What is a Payment Gateway?

A payment gateway could be termed as an online application that enables and authorizes payments for e-marketing, business, online retail services and shopping etc. This e-commerce service provider is an authorized system associated with the respective banks via which the transactions can take place.  When such transactions have the potential involvement of important statistics, the payment gateway enable perfect security and encrypted information for sensitive details that may include credit card numbers, ensuring that transaction details are exchanged among the customer, merchant and payment processor.

What ensures the security of using Payment Gateways?

• The most basic concern for the Payment gateway service provider to validate the IP of the requesting server in order to authorize the payment for a product. Any lack in this aspect could result in any loss of potential information. However, considering the security ensured in these services it is most trusted for transactions.

• Since these transactions involve entering personal and sensitive information, the entire process of communication of the main Transaction page is done via HTTPS [Hypertext Transfer Protocol Secure].HTTPS protocol enables to provide encryption and secure (website security testing) identification of the server, which ensure proper transfer of the details and does not allow any mishap.

• Validating the request in the payment page is usually confirmed with a signed request which is usually confirmed by entering SECRET WORD which is provide to the merchant and the payment gateway.

With the advent of more usage for online transactions, certain payment gateways are improving the standards of security in the transactions. One such addition is the Visual Payer Authentication (VPA) implemented as 3D secure protocol – branded as verified by Visa. We also have an elite add-on by MasterCard: SecureCode which adds an additional security layer online payment. The system of 3D secure protocol enables to eliminate some errors faced by merchants.

How payment gateways work?

In simple terms, payment gateways enable swift, easy and secure online transaction for the service provided which is processing that links the customer, merchant and the payment gateway service provider.

• The customer selects the product and places the order as done by clicking the respective button for the site.

• When the order is done using a website, the transaction details as encrypted by using HTTPS protocol is sent from the web browser and merchant server. Secure protocol enables secure transfer of details.

• Transaction details at the merchant’s web server is forwarded to the payment gateways which is again sent to the payment processor as provided by the merchant’s associated bank account and then the payment processor proceeds the transaction information to the respective card service provider(Visa/MasterCard).

• This process is followed by an authorization request as received by the credit card issuing back and sent to processor which also mentions response for transaction request. This response also includes reasons for declined transfer if the transaction is not approved. The processor then forwards the response to the payment gateway.

• Similar to the process that started, the information as transferred to the website used to process the payment and thereby ensuring the completion of the transaction. It is not a wonder that the entire process only takes few seconds for completion.

• The merchant later submits details about approved transactions to their supported acquiring bank for the settlement, the process that usually takes around a maximum of 3 days or even sooner.

• It is notable that many service providers provide proper authorization request and tools to detect any fraud in the transaction.

No related posts.

Related posts brought to you by Yet Another Related Posts Plugin.