How Online Payment Gateways Work

An internet payment gateway joins a commercial/transactional portal or site and normally- a lender. This process begins when the cardholder input his/hers details after having completed a buy on the website. The data is then encrypted in the cardholder's browser side and securely delivered to the retailer site. You can also get the top online payment processing service in the UK.

At this stage the encoded data is forwarded in the retailer server to the payment gateway onto a secure socket layer encryption, which connects the processor used by the merchant's acquiring back. The processor forwards the transaction information into the credit card issuer, which then routes it to the issuing bank.

The reverse process happens within minutes also, and together with the issuing bank's response some other particulars, such as: a notification code, the trade status and the reasons why the trade could not take effect -if any, are delivered to the cardholder.

Aside from the aforementioned steps, the remaining part of the transaction occurs in a different time period, and it implies that the delivery of this solution and the money moves from the acquiring bank to the retailer's nominated account.

Amongst other options retailers are able to take advantage of from online payment gateways, an individual can list: authorize transactions, create refunds and capture payments by accessing the real time reports and instruments set up for all these purposes. In some occasions, online payment gateways also enable retailers to easily utilize various currencies and card types.