A payment gateway is an online service that authorizes credit card payments.
A payment gateway is an online service that authorizes credit card payments. It works with your merchant account and lets you accept payments safely and securely over the Internet.
The payment gateway processes the information provided by your customer’s credit card and sends it to your merchant account. Not only does this allow you to accept payments more easily, but it also guarantees that you’ll be paid on time.
Payment gateways are a tool that consumers and merchants use every day without noticing them at all. That’s because payment gateways work invisibly, making sure that your credit card information is safe and private when you’re shopping online.
A secure link between your website and the bank.
Payment gateways are the secure link between your website and the bank. They handle all the complicated stuff that happens when you use your card, like encrypting sensitive data and ensuring that only authorized people can see it.
For merchants, payment gateways mean not having to worry about building their own complex software for processing payments directly from customers’ credit cards—or storing sensitive customer information in a database that could be hacked by cybercriminals.
What happens after you click “Pay” button?
After you click on the “pay” button on a website, the secure server at the payment gateway will take your credit card details, encrypt them and then send them to your acquiring bank. The bank will either approve or decline your transaction and communicate their approval or rejection to the payment gateway.
How does your site know about payment status?
It takes few seconds for a bank to either approve or decline your transaction and communicate their approval or rejection to the payment gateway.
It is an online application that processes credit card transactions for merchants. A merchant can be a retailer, a wholesaler or any other business that sells products or services to consumers.
When you use your credit card to make purchases online, the amount of the transaction is deducted from your account and deposited into the bank account of the merchant that you are purchasing from. This entire process happens in less than 2 seconds!
A payment gateway connects with your bank’s software (such as Opayo) which processes all transactions made through it by either approving or declining them and communicating this approval/rejection status back to you via email or text message (depending on what settings have been set up).
If the transaction is approved by your bank, the payment gateway sends a confirmation email to your customer confirming that their order was approved. Otherwise, it tells them why their credit card request was rejected.
They are the middleman between your merchant account and your bank. If you’re selling a product or service online, the payment gateway will process a customer’s credit card sale and transfer funds from their bank to yours. Your online store never has access to any of this information—the only thing you can see is that an order was placed and delivered.
The first time someone tries to use their credit card on your website, they’ll be asked for their name, address, phone number and email address (if applicable). They’ll also be asked some personal questions about how they plan on using their payment method before submitting it for authorization with the bank.
If the transaction is approved by your bank (and if not, why not?), then it moves on through its next steps based on what kind of business operation you have set up with them—either sending notification emails or text messages back-and-forth between both parties involved in making sure everything went smoothly during each transaction cycle within 24 hours after purchase.