In order to accept payment safely and easily as part of your online business, you must have a payment gateway account. Payment gateways work in conjunction with merchant accounts to process transactions Their main purpose is to provide protection to the merchant by authorizing each sale before it can occur. In order to do this, payment gateways communicate with the card issuer’s bank via the internet, who then responds by approving or denying the transaction. Advanced security methods ensure the privacy and security of data, so it can travel through the payment gateway safely.
The entire process of sharing information generally takes between 2-3 seconds. However, the process from authorization to settling the funds usually requires 3 days. It is the acquiring bank that deposits the sum of the approved sale into the merchants designated account. Overall payment gateways act as the physical barrier, barring consumers from making purchases until their payment has been approved.
Security features are another important aspect of payment gateway accounts. Due to the fact that sensitive data travels across the web for ecommerce sites to operate, it is imperative that an encryption is provided. Typically, this is done using SSL, Secure Socket Layer, technology that codes or encrypts information that is transferred between the browser and the merchant’s web server. SSL security’s main function is to protect the data from internet hackers, while in transfer.
In addition, payment gateways provide a number of other security features that work to prevent credit card fraud and protect both the merchant and the consumer. Fraud detection can occur in real time with programs such as Geolocation, which delivers address verification, along with identity morphing detection and other tools that prevent internet crime.
Overall, the payment gateway performs a variety of tasks in order to process transactions. It provides for the safe exchange of information accross the web, and assists in protecting the merchants and consumers from fraudulent identity theft. Without payment gateways, online payment transactions would not be possible.