Payment Gateway

August 19, 2008

If you want to to open an online store in order to sell out products and services, then the first and most basic thing you need is a payment gateway so that you can accept payments online. These days, many web sites run online shopping modules, with the support of various Payment Gateways which are available worldwide. Payment Gateways work as an intermediary between the customer and the merchant, and help them by making secure transactions.

A payment gateway is an e-commerce service provider that authorizes payments for e-businesses, online retailers, et cetera. Whenever a buyer or a consumer purchases a product from merchant that has a payment gateway, the payment gateway comes into action and performs certain tasks to process the transaction.

Payment Gateway creates an automatic payment deal between the customer and the merchant. It is usually a third-party service, which is actually a system designed to process, verify, and accept or decline credit card transactions on behalf of the merchant through secured Internet connections. A payment gateway is a network that allows a merchant to accept credit cards and other forms of electronic payments. These payment gateways are extremely secure so that they can safely take care of whole transaction online. When referring to payment gateways used for Internet transactions, it may also be called an IP payment gateway.

In IVR, or Interactive Voice Response Service, the customer enters the credit card details on the phone, using an automated answering service. In the case of orders via web site, the browser encrypts the information, which then passes between the browser and the web server using SSL encryption. CyberSource, VeriSign, PayPal and Authorize.net are some of the popular payment gateway service providers allowing merchants to accept credit cards through their web sites over an Internet Protocol connection.

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