How An Internet Credit Card Payment Gateway Works

From : merchantwarehouse.com

1. The online customer finds the merchant's website and adds products to their shopping cart. When they are ready to check out, they enter their billing information. If the merchant does not have a secure page, the customer can be transferred to a secure payment gateway. If the merchant does have a secure site, then the information will be "passed" to the payment gateway without the customer ever leaving the merchant's site.

2. Once the billing information has made it to the payment gateway it is then transmitted to 3rd party processor.

3. 3rd party processor will then pass the information from the payment gateway onto the bank that issued the credit card, which will verify that the card is valid and that the amount requested is available on the card. The bank will set aside the purchase amount for the merchant, then send back an approval number or a decline message to 3rd party processor.

4. That information will be passed back to the payment gateway. It will take approximately 3-15 seconds to complete steps 2-5.

5.The payment gateway will pass the approval code back to the merchant's site or if the merchant does not have a secure site give the customer their approval information. At this point the merchant can also choose to have the payment gateway email the customer a payment receipt.

6.Final payment is secured after this point, and is deposited in the merchant's internet merchant account. It typically takes two business days from the time of the original transaction for the funds to reach the merchant's checking account.

To know more, Visit: Paynet Systems