|Payment Gateway Integration|
Payment Gateway is the essence of any e-commerce site. It refers to an e-commerce service that authorizes payments for e-businesses and online retailers. It is, in a way representation of a physical POS (Point-of-sales) terminal located in most retail outlets. One cannot think of making or receiving on-line payments without a Payment Gateway. Payment gateways encrypt sensitive information, such as credit card numbers, to ensure that information passes securely between the customer and the business. The payment card industry (PCI) denotes the debit, credit, ATM, and POS cards and associated businesses. The term, Payment Gateway is sometimes more specifically referred to the Payment Card Industry Security Standards Council, an independent council originally formed by American Express, Discover Financial Services, JCB, MasterCard Worldwide and Visa International.
A payment gateway facilitates the transfer of information between a payment portal (such as a website) and the Front End Processor or acquiring bank.
When a customer orders a product from a payment gateway enabled merchant, the payment gateway performs a variety of tasks to process the transaction:
The entire process typically takes 2-3 seconds. The merchant/website owner must provide the services or then ship the product prior to being allowed to request to settle the transaction. Merchant submits all their approved authorizations, in a "batch", to their acquiring bank for settlement. The acquiring bank deposits the total of the approved funds in to the merchant's nominated account.
This could be an account with the acquiring bank if the merchant does their banking with the same bank, or an account with another bank.
Tools to detect fraud include geographical location, velocity pattern analysis, delivery address verification, computer finger printing technology, identity morphing detection, and basic AVS checks.