Ecommerce refers to any type of business exchange directed through the web. The most prominent example of eCommerce is online shopping, which is known as buying and selling of products by means of the internet on any gadget. Although, eCommerce can also involve different types of activities, for example, online sales, payment gateways, online ticketing, and internet banking. Payment gateway has a major role in eCommerce development service. Now let’s discuss about the role of payment gateway in eCommerce website.
Payment gateway in eCommerce:
A payment gateway is a service that enables all your credit card transactions through your credit card provider. In other words, a payment gateway service is a simple software application. It’s basically a channel between an eCommerce website and the bank that approves (or declines) a customer’s credit card payment through a payment gateway providers. Ultimately, a payment gateway is the last step of the online sales process on an eCommerce website. Without it you can’t be able to charge your customers when they buy things from your site.
What is the Role of a Payment Gateway?
Payment gateway services are required for handling all the credit cards online. It is a similar process as a point of service (POS) device does when you pay for your petrol. The Payment gateway works with your purchase things from a physical retailer. So, the main role of payment gateway is to approve the transaction between you and your customers. Keep in mind, without a payment gateway approval the transaction process can’t be completed and you won’t receive the money.
A payment processor analyzes and transfers transaction data. Payment gateways approve the transfer of funds between buyers and sellers.
How payment gateways work:
If a customer places an order from a online store, the internet payment gateway performs several tasks to approve the transaction:
- Encryption: The web browser will encrypt the data which is to be sent between it and the vendor’s web server. Then the gateway will send the transaction data to the payment processor which is utilized by the vendor’s acquiring bank.
- Authorization request: The payment processor will send the transaction data to the bank where the card associated with. The credit card’s issuing bank will view the authorization request and it may approve or decline the payment.
- Filling the order: Then the processor will forward the pertaining to the seller and the customer to the payment gateway. Once the payment gateway obtains this response, it will communicate it to the website or interface to process the payment. Here, it is clarified and proper response will be generated. This seems to be complicated and a lengthy process, but typically takes only a few seconds as maximum. In this point, the seller will fill the order.
Other Functions of Payment Gateway:
Payment gateways will display the orders with a numerous of useful tools. This screening process will filter the maximum of frauds. There is huge number of gateway fraud detection tools are there which includes:
- Delivery address verification
- AVS checks
- Computer fingerprinting technology,
- Velocity pattern analysis
- Identity morphing detection
- Geolocation
Ecommerce payment gateway is very helpful for any website who’s sale product online.
Thanks for sharing more info about this.