This article describes how a payment gateway works, why an online dealer requires one, and how to identify the payment gateway service suitable for your …
Join the DZone community and get the full member experience. A payment gateway is a commercial service offered by an e-commerce application provider that allows e-business credit cards, online retailing, traditional brick, clicks, and mortar payment processing. A payment gateway may also be provided by banks to its customers and may be supplied by an independent specialist financial service provider such as PayPal, square, stripe, etc. A payment gateway enables the exchange of payment information between the gateway and the front-end processor (such as a website, mobile phone, or interactive voice response system) or the acquiring bank. A payment gateway helps the payments ecosystem’s smooth functioning because it allows consumers and companies to pay online. You do not have to be a payment gateway specialist when you are an online merchant, but you need to grasp the essentials of how an e payment flow from your customers to your bank account. This article describes how a payment gateway works, why an online dealer requires one, and how to identify the payment gateway service suitable for your business. You may think that why there is a payment gateway since it is only an intermediary? Before we tackle this query, I would highlight that online payment is a transaction without having a card. You cannot physically swap your customer card to a POS end as you would usually do if you were paying in a brick-and-mortar business. So, the information you submit on the payment page can only be used for the card. But how do you know that the card used by the consumer is their card? In card-free transactions, the danger of fraud is considerably larger, and a payment gateway is helpful in this respect. Online payment gateways are not so safe and convenient. But they are never a primary goal for hackers or fraudsters too.
