Payment Gateway Original Data
Payment Gateway Original Data
Payment Gateway Original Data
Evolution
Have you ever imagined how the world would look like if we had to pay for goods with grains or the
animals we’ve just hunted? For thousands of years, it was the reality we had to cope with. Luckily, these
days are over and a well known instrument ,so called money came into the play. The invention of money
helped us to pay correct value for the goods that we bought physically. A few decades later, with
invention of internet ecommerce sites came into existance. Where we can buy anything from any where at
any time.
And this sites introduced the electronic payment method to the customer. The customer then happily used
this option by paying online. But , in the initial stages of buying goods online ,the customers used to face
many problems like internet frauds, hacking and soo on and they were losing their money. The customers
slowly reduced their online play and switched to physical buying .
To solve this problem, and to make the secured and protected payments the ecommerce services recruited
the payment gateways . finally a hero came to rescue the customers who were loosing their money online.
Before knowing about the payment gateway , we need to understand some terminologies:
Customers issuing bank – the bank that issues credit/debit card to the customer. It provides the cards
information and verification.
Merchants acquiring bank – it is the bank in which the merchant have the account.
Processor – it is a third party company appointed by a merchant to handle the functions of authorization
and settlement of funds for the merchant.
Payment processing service –connects the merchants, customers , and the banks through secure online
transactions.
Gateway – the secure pipe between the banks and the processor
what is a payment gateway?
It is a service that sends all your credit/debit card transactions to your credit/debit card
processors
It also sends you a message from your credit/debit card processor that lets you know a
transaction has been authorized.
There are even some payment gateways that will autmatically add tax and screen for
fraud.
It is the final step of the sales process on ecommerce website.
Authorization process:
1. Customer decides to make an online purchase and inputs his card information.
a. At first, the visitor places the order on the website and he enters the required information
such as Name, Card details and address, then , clicks on the submit button. This
information is sent to the merchants web server in encrypted format.
2. Merchants website recieves customer information and sends it to the concerned payment
gateway.(payment processing service).
3. Payment gateway routes the encrypted information to the processor.
4. Processor routes information to the bank that issued customers credit / debit card to the
customers. Here the bank check whether the customer has enough funds in his account to
make the payment.after checking….
5. Issuing bank sends authorization(or declination) to the processor. The bank will authorize
if the customer is eligible to make the payment or it might decline ,in case ,if the
customer does not have enough funds in his account.
6. Processor routes transaction results to the payment gateway.
7. Payment gateway sends results to the merchant. That the customer is eligible or not
eligible to the purchase of goods on his site.
8. Merchant after going through the information sent by the payment gateway decides to
accept or reject the purchase. If the merchant accepts , the customer then need to fill up
the otp that would be sent by the customers card issuing bank to transfer the funds.
Settlement process:
1. SECURE TRANSACTION
A payment gateway checks and validates online transactions. It protects merchants and
customers from flagrant instances of fraud.
2. EASE OF USE
Anyone with basic computer knowledge can perform business transactions using payment
gateways. No need to go through any costly training or learn elaborate setup. It’s simple and
easy.. Everybody can use it.
3. RAPID DEPLOYMENT
A merchant can immediately utilize payment gateway service for his/her online store. He
need not wait for agonizing time to complete the payment gateway setup in his business.
He can avail it in the quickest time possible.
4. FEATURE-RICH
Internet payment gateways offer lots of customizable features that could greatly benefit
merchants and customers alike. There are security features, payment option choices, card
features, etc…You may turn on all these features or select only the ones that best serve your
type of business.
Remember that a payment gateway deals with customers’ information. Therefore, a payment gateway
company will have files on all sensitive customers’ data—- customers’ names, banks accounts, credit card
numbers, passwords,etc. These are highly valuable data. So there is a chance of loosing info.
A payment gateway is basically a software. And just like any piece of computer software, it can go awry
at times. When it does, it can have deleterious effects. The customers can no longer access or make
payments online. On the other hand, the software glitch will render merchants’ websites inoperative. It
will take time— maybe weeks or months– to troubleshoot the problem and bring back merchants websites
back to normal functionality.
CUSTOMERS’ UNEASINESS
Fraud is widespread in the Net and this fact scares most customers. They tend to stay away from any web-
based software when making online transactions that involve disclosing personal information. If a
merchant company gets a payment gateway service but the customers will not utilize it for some reasons
or another, then the merchant will be at the losing end of the bargain.
list of top 10 Payment Gateways in India
• CCAvenue
• Citrus Pay
• PayUBiz
• direcpay
• instamojo
• bill desk
• atom paynetz
• PayUMoney
• ePaisa
3. Freecharge - CCAvenue