What Is Merchant Account? Why Do You Need That One?

A payment gateway is a software application that payment service providers use to process payments for online purchases originating on the merchants website.

It acts as an interface between the merchant's website and a payment processing bank known as an acquirer. 

Generally a gateway can be used for many types of payment methods both for the purpose of this article we will focus on online credit card payments the gateway encrypts sensitive credit card details to ensure that information is securely between the customer the merchants and the acquiring bank.

When a customer purchases a product or service or the website that is connected to a payment gateway the gateway performs a variety of tasks to process the transaction.

Once the customer places the order on the merchants website they choose to check out the full pay and then redirected to a payment page to enter their credit card details.

If the merchant is fully compliant with the necessary security standards the payment page can be generated on the merchant service and the cost information collected and passed on to the payment application in a secure way.

The payment page can also be generated but the payment gateway application itself and information can be collected them either way the card transaction details are gathered and stored in the secure set this up the payment gateway.

On that the payment gateway processes transaction and send all information to the issuing bank for approval via the acquirer and the relevant because. 

Once the payment has been confirmed by the cost keeps the payment gateway approved transaction back to the merchant's website and then the merchant if the customer that the purchase has been successfully completed.

Of course the payment gateway performs a lot all the tasks as well when it comes to credit card payments these are the main steps to processing a transaction. 

Can you believe that this entire process only takes around 3 seconds it took us about 10 times the amount of time to explain it to you.

Hey man get waves at a whole load of value throughout this process here are some of the key features.

A payment gateway is the most common way for admitting to connect to the payment system only the largest merchants are able to connect to an acquiring bank directly. 

Gateway transaction fees are very small compared to the advantages they offer in helping the merchants connect to an acquirer manage the business and to control the risk associated with accepting online payments.

A good payment gateway will provide the merchant with many customization reporting options which helps the merchants to manage that business a good payment gateway will be connected able to process many different payment methods that may not yet be office by the merchants.

5 Star Processing pay has its own highly secure Ecommerce payment gateway as level one compliant gateway check out our website to learn more.