An on the internet payment gateway links a commercial/transactional portal or web site and -normally- a bank. This process starts when the cardholder enter his/hers details following having performed a buy on the website. The information is then encrypted at the cardholder’s web browser side and securely sent to the merchant internet site. At this stage the encrypted info is forwarded from the merchant server to the payment gateway on a Secure Socket Layer encryption, which connects the processor used by the merchant’s acquiring back. The processor forwards the transaction data to the credit card interchange, which then routes it to the issuing bank.
The reverse procedure occurs inside seconds as nicely, and along with the issuing bank’s response some other details, such as: a notification code, the transaction status and the factors why the transaction could not take effect -if any, are sent to the cardholder. In other words, this information passes by the credit card interchange, the acquirer processor, the payment gateway, the merchant’s website and finally reaches the cardholder.
Apart from the above actions, the rest of the transaction happens in a different time frame, and it implies the delivery of the item and the cash transfers from the acquiring bank to the merchant’s nominated account.
Amongst other alternatives merchants can take advantage of out of on the internet payment gateways, one can list: authorize transactions, make refunds and capture payments by accessing the actual time reports and tools set up for these purposes. In some occasions, on the internet payment gateways also permit merchants to quickly work with different currencies and card types.
