August 23, 2010
Payment gateway is a software solution that allows internet users to make purchase online. There are several websites online that are selling products to its customers online and are making use of payment gateways to charge them for their purchases, the most popular payment gateways being PayPal, and Authorize.net.
These gateways are analogous to POS as seen in the offline shops. While selecting a payment gateway, you need to be very sure that it is reliable and 100% secure. The popular gateways like PayPal have been around for years and are known for reliable services to the customers. All the payment gateways use mandatory security procedures like working on SSL, having independent servers and incorporating fraud tracking mechanism.
If you have an online store, you may need to have a payment gateway which works with the shopping cart to allow successful checkouts. The process of connection of an online store with gateway is called Payment Gateway Integration. To integrate a payment gateway with your ecommerce website, you will need to take services of a reliable web development company.
How Payment Gateway Works:
- After selecting the products that a customer wants to buy online he submits his order and it is forwarded in an encrypted form to the web server of the seller. Through SSL, the information fed in the form is encrypted and is sent to Gateway.
- The details of the transaction are then forwarded to the acquiring bank of the merchant.
- The acquiring banks then forward the same to issuing bank i.e. the bank that has provided the credit card to the buyer.
- After getting the details, issuing bank then forwards the response to an online gateway that whether the payment has been acknowledged or not. If not acknowledged, the cause is also sent in the response.
- The cause is then forwarded to gateway and hence to the server of the merchant.
- The response is ultimately sent to buyer in an encrypted form to inform the customer if his order has been placed effectively or not.
- At last, the issuing bank deposits the required amount in the account of merchant.
Why Online Payment Gateway is essential?
- It is an indispensable part of online shopping, payment of goods bought online cannot be made without a payment gateway.
- It adds to the use of E-Commerce i.e. selling and buying of goods via internet.
The only thing that you need to keep in mind is the security of the whole process while working with payment gateways. You need to follow the procedures laid by the local agencies as well as payment gateways for integrating these successfully. You should take services of experienced Web Development Company for payment gateway integration. We at Centex Technologies are experts in providing Ecommerce solutions including creation of shopping carts, payment gateway integration, ecommerce optimization, and pay-per-click management.