What are Payment Gateways?

fiona December 9, 2018 No Comments

What are Payment Gateways?




Payment Gateway (Service Gateway) – A service for fast and secure processing of electronic transactions, an online equivalent of a payment terminal used in retail outlets. Authorizes payments and provides contact between the seller, the buyer, and the bank.

Payment gateways are software applications created specifically for e-commerce. However, thanks to the fast and accurate activation of payments embedded in them, they have found application in traditional business. Security of information exchange through the payment gateway is achieved by encrypting personal data such as credit card number, secret code, etc. using SSL (Secure Socket Layer). Many hosting companies include payment gateways in their standard client packages.

How to Buy Goods Using Payment Gateways?





To buy goods through the payment gateway, the customer must have an account in the corresponding system. But once having passed the registration, then, upon purchase, he chooses a payment method through the payment gateway and enters a Password – the card data is transferred automatically. Some online stores offer their customers two alternative ways to pay for goods: through a gateway or by credit card. If the seller does not have the tools for self-processing of plastic cards, he uses only the payment gateway (for example, almost all transactions are made on eBay auction). For the buyer to use the payment gateway for free, the seller pays interest on the transactions.

How the Payment Gateway Works?

  • To use payment gateways you need to connect to the Internet.
  • The buyer transacts through the website or physically.
  • The data is sent to the payment gateway which receives information and then transfers the details of the
  • transaction to the bank that issued the card with which the purchase was paid.
  • The bank sends a request to the payment system (VISA, Mastercard, etc.). There is an assessment of compliance with the terms of the transaction and the client’s credit situation.
  • The issuing bank sends an authorization code that “gives the nod” to the payment system for the transaction.
  • The payment system sends the authorization code to the payment gateway from there it goes to the seller.
  • If the transaction is approved, the sale is completed and the money is withdrawn from the client’s account.
  • The whole process takes a few seconds. The speed depends on the quality of the Internet connection. In reality, the seller receives the client’s money in about 3 days.
  1. Simplicity: We already have too much to worry about managing our business, so we can add a complex system that takes weeks to configure. It is necessary to look for a payment gateway that is easy to configure and integrate to our site, both from the technical side and from different personalizations: such as language, color s and everything that associates it with our “branding”.
  2. Stability: An important issue that we must take into account is having a payment platform with the capacity to keep pace with the demand for generated transactions, there is nothing worse than having our payment system stopped for lack of support which translates into losses in sales and most importantly, in a negative experience of our customers.
  3. Transparency: Make sure you choose a provider that has a clear and simple price plan, that allows you to leave at any time without penalties, and that also allows you to take the data of the cards and clients when leaving or changing suppliers, mainly that does not hide fees and surcharges in small letters.
  4. Support: The configuration and integration of the payment system is usually the moment when we need the most help. When analysing the services of the providers, it is important to ask if the company Fruxinfo offers support for the configuration and / or integration. If so, do we have to pay for this type of support? Can you talk to a developer if you are having problems with the code? What happens after it has been configured and implemented? In no way do we need a provider to pass us through different.



Categories : Payment Systems