Payment Gateways – The Backbone of Your Online Business
If you’re ready to move your business online, a fast, reliable internet payment gateway is critical for your business’s success. If you don’t know what a payment gateway is, don’t worry; you’re far from alone. Just think of a payment gateway as an online version of the cash register, or point of sale, that otherwise exists in a brick and mortar store.
And just like a point of sale, the inner workings of the payment gateway can be pretty complex when it comes to charging credit cards. If you were ever curious about how this crucial aspect of your business really works, here’s your chance to learn.
The Inner Workings of a Payment Gateway
It all begins, of course, with a purchase. Once the customer inputs their financial data and places an order to be shipped, the process begins and the internet payment gateway becomes an important part of the process.
After the order form is completed and sent, the customer’s information is encrypted via the web browser which sends it to the merchant’s web server. This is where SSL technology becomes so crucial. SSL (Secure Sockets Layer) technology protects the confidential financial information from the prying eyes of hackers and thieves.
The merchant then loads the information into the internet payment gateway. The internet payment gateway forwards the transaction information to the payment processor, which is another way of saying the merchant’s acquiring bank.
The bank will make sure that no fraud is taking place and run the required checks to make sure everything is in keeping with industry standards.
If an American Express or Discover Card is the card in question, the processor takes the role of the issuing bank and verifies whether or not the payment gateway has been approved or declined. (This usually incurs a small fee and is part of the reason why some businesses won’t accept American Express or Discover cards when first starting out).
The information travels in a loop back through the processor, the internet payment gateway, and to the website in question, which then essentially receives a confirmation that the payment went through.
If this all sounds a little confusing, keep in mind that the whole process should take between two and three seconds. Now picture this happening dozens of times in a few minutes, around the clock, and you’ll understand why a good internet payment gateway is so crucial to your online business.
Allied Wallet – The Preferred Choice for Payment Gateways
Allied Wallet provides a number of helpful services for businesses looking for an online payment gateway to help them with global transactions.
Our chargeback prevention features, safe, and secure encrypted transactions. This and the fact that we accept over 160 currencies from around the world have helped us become a highly sought after purveyor of payment gateway services.