How Well Do You Know About Payment Gateway?

March 14, 2017
Posted in Journal
March 14, 2017 O2O Pro Management

I believe most of you experienced purchasing items online and do you notice the way you’re using to make payment online is through a payment gateway?

 

Q: What is a payment gateway?

A: A payment gateway is an e-commerce service that processes credit card payments for online and traditional brick-and-mortar stores. Payment gateways facilitate these transactions by transferring key information between payment portals such as web-enabled mobile devices/websites and the front-end processor/bank.

 

Q: What is the role of payment gateway in e-commerce?

A: Payment gateways fulfil a vital role in the e-commerce transaction process, authorising the payment between merchant and customer. A popular example of payment gateway is PayPal.

 

Q: What’s the difference between Payment Processors and Payment Gateways?

A: A payment processor analyses and transmits transaction data whereas a payment gateway authorises the transfer of funds between buyers and sellers.

 

Q: How payment gateways work?

A:  When a customer places an order from an online store, the payment gateway performs several tasks to finalise the transaction:

 

 

 

Image result for acquirer bank

 

Now you have a better understanding of what is behind a payment gateway and the steps involved may seem complicated and tedious but every step is designed for the security of your payment. For those who are not used to make payments online, do you have the confidence now to use a payment gateway? If your answer is still a NO, make sure you stay tuned to our post which explains the security of a payment gateway.