Payment Gateways In E-Commerce

How do you think your purchases online are made possible? How have they become so very simple suddenly when this was not the case in the olden days? Who do you think is aiding you in this? Very simple, the payment gateways which are initiated and operated by the e-commerce business! Yes, now in the present day world, you do not have to go out for anything for everything is made available online and the best part is they get delivered at your place absolutely free and in no time. So don’t you think this as the best and the easiest mode of purchasing things? Come let’s take a look at how these payment gateways make it possible for us and profitable for the e-commerce business organizations.

The process

  • When a customer, on a particular business website, is happy and satisfied with a product and he wishes to own it, places an order by giving his bank details expressing his desire to purchase the same.
  • Now, this payment is now processed through many ways. If this request was through a website, it would encrypt the information between the website and the merchant`s browser. In other methods, it is transcript either through the secure socket layer or is sent straight to the payment gateway from the customer`s browser bypassing the merchant`s browser. In any which way it helps and benefits the e-commerce business with the payment receipt.
  • Now when this request first reaches the merchant, he forwards it to the payment gateway through an encryption.
  • Now, this gets converted and transcript from here and is sent to the payment processor for further processing.
  • Now, this processor transfers the same to the card association. The purchase could have been made by the customer using any card type. For example, if he uses an Amex card, the transfer of instruction would be immediately approved or declined by the same. If it is a master card or a visa card, the instruction would be forwarded to the issuing bank from where the approval comes.
  • Now here the bank checks the state of the person and then gives the approval which is forwarded back to the payment gateway by the processor.
  • Once this is received by the merchant, he prepares to process the request and this way the payment gets done in no time and the product also reaches the customer.

This entire process would take no more than five minutes for everything is done electronically and the approvals are obtained instantaneously from the banks.