Adaptable solutions for payment


In a digitalized era, where everything, even finance is technology driven, the term payment gateway has become the meat and potatoes of the fintech solutions. A payment gateway is an ecommerce service that processes credit card payments for online as well as  for the brick and mortar stores. Payment gateways drive these transactions by transferring key information between payment portals such as web-enabled mobile devices/websites and the front end processor/bank.
Payment gateways play an important role in the ecommerce transaction process, authorizing the payment between merchant and customer. Payment gateways vs. Payment processors: what's the difference? A payment processor analyzes and transmits transaction data. Payment gateways authorizes the transfer of funds between buyers and sellers.



How payment gateways work


The web browser encrypts the data to be sent between it and the vendor's web server. The gateway then sends the transaction data to the payment processor utilized by the vendor's acquiring bank.


Authorization Request

The payment processor sends the transaction data to a card association. The credit card's issuing bank views the authorization request and “approves” or “denies.”


Filling the Order

The processor then forwards an authorization pertaining to the merchant and consumer to the payment gateway. Once the gateway obtains this response, it transmits it to the website/interface to process the payment. Here, it is interpreted and an appropriate response is generated. This seemingly complicated and lengthy process typically takes only a few seconds at most. At this point, the merchant fills the order.