Download
1 / 2
20 likes | 45 Views
Payment gateways facilitate secure and smooth payments and act as a bridge between a customer, a merchant, and a financial institution. It plays a critical role in ensuring the secure, and efficient transmission of data. Understanding the functioning of payment gateways in India can be a little complicated, but here are a few steps that can simplify it for beginners.
E N D
How does a payment Gateway work? Payment gateways facilitate secure and smooth payments and act as a bridge between a customer, a merchant, and a financial institution. It plays a critical role in ensuring the secure, and efficient transmission of data. Understanding the functioning of payment gateways in India can be a little complicated, but here are a few steps that can simplify it for beginners. Many companies offer exceptional FinTech services, but, the business should pick them based on its requirements. Let's understand how payment gateways work. Step 1:Initiation from the Customer’s End: The process commences when the customer begins a purchase on an online store or website and proceeds to the checkout page to make a payment. As soon as the customer enters sensitive banking information, the payment gateway encrypts this data using secure encryption protocols. The data is then sent from the merchant's website to the payment gateway's server. Step 2: Payment Gateway Server Receives Encrypted Data: After receiving the data, the server decodes it using the private key. It further gives access to the payment details while keeping the data secure. Step 3: Decrypted Payment Information: The payment gateway forwards the decrypted payment information to the acquiring bank or payment processor. Now the payment processor checks if the Details are authentic, determining whether the customer has sufficient funds and deciding whether to approve or decline. Step 4: Transaction Result: The issuing bank sends an authorization response to the payment processor after the validation process. The payment gateway informs the customer about the status of their transaction. If the transaction is successful, the customer receives a confirmation message. If it's declined, the customer is provided with an explanation. Step 5: Settlement: If the transaction is approved, the funds are reserved in the customer's account and marked for transfer to the merchant's account. This process of transferring funds is known as settling. The merchant reconciles their records to ensure that the funds have been received in their account and that the transaction details match their records. Pay10 has everything that can help you boost your sales and increase revenue. The device- agnostic platform is one of the best payment gateway companies in India that incorporates advanced technology, real-time reconciliation, and automated routing. Given
the top-notch security and flexible services offered, it has created a reputation as a trusted FinTech service provider. View Source:-https://www.quora.com/How-does-a- payment-Gateway-work/answer/Akshay-Talwar- 13?prompt_topic_bio=1
