What is a Payment Gateway? |
One of the most important things that you must have in order to accept credit cards for your business is a payment gateway. A payment gateway is basically the same thing as a physical point of sale terminal in a retail store. The service that automates the payment transaction between the shopper and merchant. It is usually a third-party service that is actually a system of computer processes that process, verify, and accept or decline credit card transactions on behalf of the merchant through secure Internet connections. The payment gateway is the infrastructure that allows a merchant to accept credit card and other forms of electronic payment. When referring to payment gateways used for Internet transactions, it may also be called an IP payment gateway.
Payment Gateway offer many different services, some of which include:
* Authenticate credit card or electronic check transactions over the Internet
* Send/receive transactions over the wire using the secure socket layer (usually128-bit encryption behind a firewall)
* Offers administrative support
* Promises complete privacy for all messages
Payment gateways link the virtual terminal ("buy" page) to the merchant account and the credit card organization securely. This protects the credit card data and any other personal information from being exposed to computer hackers.
One good thing about most payment gateways is that they offer a virtual terminal (input information screen). This is the software that allows the customer to input their credit card information.
Advantages of Accepting Payments with a Payment Gateway and Merchant Account
What is a Merchant Account?A merchant account is a business bank account that allows you to collect payments from credit card or consumer bank accounts. Merchant accounts are provided by acquiring banks – financial institutions that verify the availability of funds, authorize transactions, and obtain and deposit funds from the customer's bank into your merchant account.
Why do I Need a Payment Gateway?The vast majority of e-commerce merchants do not have the technical resources, money or expertise to build a direct connection to the payment processing networks. For this reason, payment gateways like Authorize.Net provide merchants with the complex infrastructure and security necessary to connect their Web sites to the payment processing networks. (See our credit card processing diagram.) In other words, a payment gateway acts just like a traditional credit card swipe machine you find in the physical retail world.
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| Tag : Payment Gateway,Paypal , Google Check out |
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