What are Payment Gateways and how do they work? | Hi Tech Blog

 First of all, what are Payment Gateways?


   It's a merchant service which has been provided by e commerce application service provider that authorizes credit card/direct payments processing for e business, online retailers, etc.
Payment Gateways

    Payment Gateway facilitates payment transaction by the transfer of information between a payment portal and the front end processor or acquiring bank.

  In simple words,payment gateway is a software application that payment service providers use to process the payment or online purchases originating on merchants website.

   It's like an interface between the merchant website and a payment processing bank known as an acquirer.
Payment Gateways

    It can be used for many types of payment methods. For online credit card payments, the gateway encrypts sensitive credit card details to ensure that information is passed securely between the customer, the merchants and the acquiring bank.

    Gateway performs a variety of tasks to process the transaction.


   First of all,when customer place their orders on merchants website, they choose to check out or pay and then they are redirected to payment page to enter credit card details.

Payment Gateways

   Either way,the card and transaction details are gathered and stored on the secures surface of the payment gateway. And from that,it sends all the information about credit card to the bank for approval of transaction. After the payment got successful, the merchant sends a message to customer that payment has been done successfully.
   So,this is how payment gateway works!!

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