What is a Payment Gateway?
What is the payment gateway? This is a service that provides authorization and processing of payments. It provides:
- A quick financial transaction.
- Encryption of the buyer's data.
- Subsequent transfer of information along the further chain for making a payment.
Payment gateways are necessary in order to provide stable, fast, and encrypted communication between all links of the payment chain – the merchant's website, the issuing bank (the bank that issued the buyer's debit/credit card), the payment system, and the acquiring bank (the bank in which the merchant account is opened), and the seller's account.
To make a purchase, the customer enters their bank card information. The pay gateway sends it to the issuing bank, which checks and transfers the data to the payment system. The payment system provides the transfer of funds. The acquiring bank accepts them, processes them, and sends a confirmation. Next, from the acquiring bank, the payment confirmation follows along the chain, which the buyer will eventually see through the processing gateway.