A Payment gateway development is a merchant service supplied by an e-commerce application service provider that allows e-businesses, online merchants, bricks and clicks, or traditional brick and mortar to process credit cards or direct payments.
A bank may provide a payment gateway to its customers, but it can also be supplied as a separate service by a specialized financial technology service provider, such as a payment service provider.The transfer of information between a payment portal (such as a website, mobile phone, or interactive voice response service) and the front-end processor or acquiring bank is facilitated by a payment gateway.
PROCESSWhen a consumer orders a product from a merchant that uses a payment gateway, the payment gateway completes several actions to complete the transaction.A customer submits a purchase on a website by pressing the 'Submit Order' or equivalent button, or by using an automated phone answering service to enter their credit card information.If the client places an order through a website, the information exchanged between the browser and the merchant's webserver is encrypted by the customer's web browser.
This can be done using SSL (Secure Socket Layer) encryption in addition to other techniques.Transaction data from the customer's browser may be transferred straight to the payment gateway, bypassing the merchant's systems.
The merchant's Payment Card Industry Data Security Standard (PCI DSS) compliance duties are reduced as a result of this without the customer being redirected away from the website.After that, the merchant sends the transaction information to their payment gateway.
This is a second (SSL) encrypted connection to the payment gateway's payment server.The payment gateway translates the message from XML to ISO 8583 or a variant message format (which EFT Switches understand) and then sends the transaction information to the merchant's acquiring bank's payment processor.The transaction information is forwarded by the payment processor to the card association (Visa/MasterCard/American Express).