What is an Online Payment Gateway? Online payment gateway is a unique electronic tool best suited for online organizations. It allows merchants to process various credit card payments using different payment gateways, eliminating the need for different software and configuration for each gateway application. A payment gateway effectively transmits all the needed information regarding the client’s credit card to various payment processors for it to be processed. Once processed, it sends an immediate message to the merchant and the company owner to ensure that the transaction is fully authorized.

Linking Financial Entities Together

Payment gateway enables online merchants to accept different types of payments, including credit cards, electronic checks, internet money transfers, and online transfers from their bank accounts. It connects merchants with various payment processing banks that process their online merchant accounts. The primary role of this electronic payment gateway is to link all of these financial entities together so that merchants may accept all kinds of payments. The gateway then verifies each transaction made by the online merchant and authorizes it to go through or be rejected. Once the transaction is approved, it forwards it to the proper financial entities. It sends back the received signal to the clients to confirm whether they agree to the terms and conditions.

How Does the Process Work?

The process of online payments is straightforward. It begins with the merchant creating a web page containing all the product details. Next, he asks his customers for their credit cards. Upon receiving the cards, the online payment gateway will verify the authenticity of the cards and run them through different verification processes. If everything goes well, it then sends back the processed signal to the clients to confirm whether they want to enter their personal information or their bank account information. On confirmation, a secure transaction of funds takes place.

Secure and Confidential Information

Online merchants have to adhere to PCI compliance to process credit card information using secured transactions. This ensures that all of the information that goes into the online transaction is protected. The Payment Gateway Device also checks the information provided by the clients to make sure that they are who they say they are. PCI compliance is important for merchants because it gives them a better platform to operate their businesses and give their customers the services and products they need.

To comply with PCI DSS regulations, online processors have to scrutinize the information that passes through the payment gateway carefully.