What is Payment Gateway and Their use

Whenever we use our payments cards for paying anywhere, we wish it should be safe to do the transaction. So you must be thinking how these payments are safe, For this, we must know how this Payment Gateway work and provide security to our transactions.

Payment Gateways are software implemented for the secure data transmission by the Service providers. It acts as an interface between merchants machine and payment provider banks. For example, when we swipe our payment card into the machine it sends the full data to the acquiring bank.This bank provides service to the merchant.

Payment Gateways mainly encrypts the data. To pass the data securely to a different platform.These are basically software part running behind.Serving the purpose of securely passing the sensitive cardholder data.

Uses of Payment Gateways

1.In e-commerce

When we select any product and proceeds to purchase it we just submit our credentials for the payments.That is where the Payment Gateways work it safely send and receives data for placing a payment.

2.Banking

Any transaction carried away for payments all are covered by Payment Gateway.Banking websites also use these Gateways for the safer transaction. For example, when we use internet banking all our data sent and received is processed form Payment Gateway.

Majorly all the banks or payment card industry which complies with PCI-DSS have these payment gateways implemented. These gateways provide extra protection to our transactions.

Working

We will be taking the scenario of the while we make payment to any e-commerce website…

  • A user makes payment
  • Then the website sends the user sensitive payment data to the payment gateways
  • Then the gateways Tokenize the request and send it to the merchant acquiring bank
  • Processor sends approval or decline of request to the gateways
  • If approved the token is again sent back to the e-commerce server for the payment approval

All this process takes only a few seconds approximate 3 seconds.But it has taken 10 times more to read about it …

Read About No more Payment Card Frauds from now

Read About Why ATM card pin only 4 digits but Email password has to be more complex

 

2 Replies to “What is Payment Gateway and Their use”

Leave a Reply

Your email address will not be published. Required fields are marked *