Now a days Payment Gateway Integration has become the necessity for most of the shopping and e-learning websites as the user's can directly pay from their credit card or debit card accounts. A payment gateway allows your online store to accept credit card payments from customers.
What is Payment Gateway?
The payment gateway facilitates online payments by connecting your secure order form with your specific merchant account at a processing bank. The gateway takes the submitted form data and presents it to the processing bank for authorization. When it receives a response from the bank, it presents that return data to the website of origin for appropriate handling. Payment gateways protects the credit card or debit card details by encrypting sensitive information such as credit card or bank account numbers to ensure that information is passed securely.
Basic Steps In Payment Gateway Transaction Process
- The cardholder fills out a payment information form to pay for a purchase at website’s check-out page.
- The customer's web browser encrypts the information to be sent between the browser and the merchant's web-server. In between other methods, this may be done via SSL (Secure Socket Layer) encryption.
- The merchant then forwards the transaction details to their payment gateway. This is another (SSL) encrypted connection to the payment server hosted by the payment gateway.
- The payment gateway forwards the transaction information to the payment processor used by the merchant's acquiring bank.
- The payment processor then sends these transaction information to the card association (eg. Visa/MasterCard/American Express). If an American Express or Discover Card was used, then the processor acts as the issuing bank and directly provides a response of approved or declined to the payment gateway. Otherwise [eg. a MasterCard or Visa card was used], the card association routes the transaction to the correct card issuing bank.
- The credit card issuing bank receives the authorization request and does fraud and credit or debit checks and then sends a response back to the processor (via the same process as the request for authorization) with a response code [eg. approved, denied]. In addition, the response codes are used to define the reason why the transaction failed (such as insufficient funds etc.).
- The processor forwards the authorization response to the payment gateway.
- The payment gateway receives the response, and forwards it on to the website where it is interpreted as a relevant response then relayed back to the merchant and cardholder.
- The merchant then fulfills the order by creating the invoice and sending it to the cardholder.
- The entire process typically takes 3-4 seconds.
a merchant wants to use the payment gateway on his website he needs to
request for an account. After making the request for an account, payment
gateway verifies this requested merchant and provide him with an
account which is mostly referred as “Merchant Account”.
This Merchant account comes with the test environment so that the developers can test the payment flow which they have developed in test mode. For the test mode the payment gateway provides test credit card or debit card numbers so that by using those details the developers can easily test the developed payment flow. After the developers finish their testing the same account will be use for live payment by making some changes in the parameters.
- Credit Card
This is one of the mostly used payment method used by many websites. User can use his credit card details to do the payment online. (Eg. Visa, MasterCard, American Express, JCB, Diners Club)
- Direct Debit
Direct Debit is a reliable and trusted method that enables you to make regular and occasional payments from your bank account.
- Recurring Billing
Recurring billing gives the ability to set up a payment that reoccurs over a set period of time. If you need to bill your users on a monthly basis without having to worry about performing this action manually, then you need a payment gateway that supports recurring billing.
Payment Gateways Lelesys Implemented