How Does a Payment Gateway Work?

People these days prefer to make card payments and now even the government is encouraging people to do more and more transactions using credit or debit cards instead of cash. The method of online transactions is both convenient and clean.

A payment gateway can be understood as an online equivalent of a facility that you see in physical stores where you swipe your card for making the payments. If you are making any purchase online, then you cannot swipe your card, but instead, you require a gateway that can process the transaction based on your entries regarding your card.Image result for How Does a Payment Gateway Work?

The common credit transaction is a two-step procedure – authorisation and clearing. Payment gateways work as a medium to transmit the transaction information to the acquiring bank through its software. The issuing bank then either approves or declines the transaction depending upon the clearance of the data input by the user like credit card number, validity date, and whether the amount of the request is within the cardholder’s line of credit. The role of the payment gateways is to facilitate this communication.

As these payment gateways handle the credit card information of the customers, they need to have a very high-security feature. This is to ensure that such sensitive information does not fall into the hands of wrong persons who can dupe the customers by using this information to make online purchases. To avoid such mishaps, gateways have to follow the certain set of security standards, which are known as PCI-DSS (Payment Card Industry Data Security Standard).

Technical support is a risky job and getting a payment gateway for technical support is not very easy. You need to have a good repo in the operating region with low refunds and chargeback issues to get one. When an order for payment is placed, HTTPS protocol is used to communicate the personal information between the parties that are involved in that particular transaction. Apart from providing the real-time transaction facility, some of these payment gateways also help in translating currencies in different countries and help in bridging the gap arising due to different language or payment methods used.

Bio: Thomas Birchfield is a professional working with a leading firm that specialises in giving solutions for the smooth functioning of the websites.