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How Internet Payment Gateway Works

Internet payment gateway makes it fast and easy to process credit card orders online, directly from your website and in real time. This processing method is convenient and lets customers know right away if their order was approved or declined.

The way it works is simple.

Before the payment gateway, a shopping cart function is used to allow customers to pick and choose the different items they want to purchase from the site. The function includes features that allow customers to pick colors, sizes and other options. When the customer is ready to check out, the shopping cart totals all the items, adds tax, shipping costs and collects the customers shipping and billing information.

As soon as the customer submits the order, the credit card transaction gets captured by payment gateway, which then encrypts the transaction information, forwards it to the credit card processor and finally returns a notice of either an approval or decline. All the data routed from the shopping cart uses a secure connection, resulting in a quick and seamless process for both customer and merchant.

When a customer tries to make a purchase from a website, a three step process is performed by the Internet payment gateway:

Authorization - Purchases made with a credit card or debit card have to be authorized by the credit card issuer. After the payment gateway confirms that the card is acceptable, it generates a secure link between the customer, merchant and the merchant's credit card processor. The average transaction time is 2 seconds.

Settling - Internet payment gateway groups all the transactions and sends the total amount to the merchants bank is one single batch at the end of the day. The settling process usually takes 2 business days after the funds have settled for the merchant to see the funds deposited into the bank account.

Reporting - All the transactions get recorded and can be viewed by the merchant through the payment gateway reports. The reporting facility allows transactions to be viewed, printed and downloaded directly to the merchant's computer for further accounting.

Unlimited Users - There is no limit to the number of users the gateway can use at the same time. Terminals and software solutions only allow one customer to check out at a time and only one operator to place a transaction at one time. Internet payment gateway allows multiple users simultaneously placing transactions from different locations.

Fraud Screening - Fraud screening tools are included with Internet payment gateway to reduce fraudulent transactions. Internet payment gateway ensures that orders are legitimate by using address verification and card code value verification. The credit card transactions and information get stored in the Internet payment gateway instead of the merchant's website to reduce fraud and liability.

Merchant Guide