Everything you need to know about payment gateways www.deekpay.com

What is a payment gateway

Payment GatewayTransferring the customer's payment information to the seller's bank account ensures that the customer has sufficient funds to make the payment.

Payment gateways are often confused with payment processors, but there is a difference. A payment gateway is the technology used by sellers to accept payments, transmitting the customer's payment information to the seller in order for the seller to pay. A payment processor transmits transaction data and handles the exchange of information between the customer and the seller.

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How Payment Gateways Work

The payment gateway plays an integral role in the overall payment processing system. It is the front-end technology that sends the customer's payment information to the seller's acquiring bank. As technology evolves, so do payment gateways. In the past POS terminals used magnetic stripes and sellers collected paper signatures from customers. Today, chip technology and contactless purchases such as Apple Pay speed up the payment gateway process.

Here are some of the famous payment gateways:

PayPal: PayPal is one of the most popular redirection payment gateways with a strong anti-fraud team. Merchants also choose PayPal for its versatility due to currency and shopping cart compatibility. Apple Pay: Apple Pay payments go through compatible credit cards. Many brick-and-mortar merchants use Apple Pay because it's easy to use. Square: This is a popular payment gateway for mobile and face-to-face transactions. Stripe: Merchants choose Stripe for easy setup and customisation options. Stripe also has strategies to streamline the checkout process, such as one-click checkout.

The technology of payment gateways may seem complicated, but payment gateways can transfer a customer's payment to a seller's bank account in seconds.

Payment gateway working steps

Collect: Customer enters payment information, which can include credit card or PayPal credentials. Verification: Once the information is received, the payment gateway verifies that the issuing bank has the funds available to pay for the transaction. Transfer: The payment gateway sends an encrypted payment message to prepare the transaction The authorised card scheme approves and processes the transaction, then the payment gateway sends the message to the seller to complete the transaction. Completion: The payment gateway sends the message from the customer's card-issuing bank account to the seller's bank account so that the seller can make the payment.

Types of payment gateways

There are several different types of payment gateways: redirection, front-end checkout, and on-site payments. Each method has unique benefits.

Redirect: Redirecting a payment gateway takes the customer to the payment page to complete the transaction. PayPal is a prime example. When a seller uses a redirection payment gateway like PayPal, PayPal handles the transaction processing, which takes the burden off the seller's end. However, for the customer, visiting a different payment page is an extra step. Front-end checkout: "For front-end checkout, the checkout happens on the seller's website, but the payment processing happens on the back-end.Stripe is the front-end checkout payment gateway. Onsite Payment: The onsite payment gateway handles the entire checkout process on the seller's website. This method is favoured by large enterprises due to its complexity. With this method, the seller has more control over the process, but also more responsibility in maintaining the front-end and back-end.

Why use a payment gateway

Sellers can save time by using payment gateways because they don't have to manually enter customer information; payment gateways can automate the process. This frees up sellers to focus on their business instead of the tasks This can be handled through technology. When a customer makes a purchase, the payment gateway encrypts sensitive information, such as credit card payments, to ensure that the transaction is secure. In addition, in the context of encrypted payment processing, payment gateways are also critical for facilitating secure cryptocurrency transactions, providing customers with more payment options and potentially expanding their customer base.

Atpay - we are a professional provider of payment solutions and have been deeply involved for many years inIndia PaymentsWe have successfully provided payment functions for countless customers at home and abroad. We are fully confident in payment integration and high-risk payment processing, and welcome inquiries and exchanges.