• It is an e-commerce application service provider service

• It authorizes credit card payments for online business

• Protect credit card information by encrypting receptive information

• Make possible the transfer of information between a payment portal and the Front End Processor.

How Payment Gateway Works?

• In the first step, online user places order through the ‘submit order’ button

• Web browser encrypts the information and then sent to the merchants web browser through SSL(secure socket Layer)

• Then information transfers from the merchant browser to the payment gateways, from payment gateways to the payment processor ad then to the credit card association.

• Credit card checks the authorization details and pass the details to the processor.

• Processor send the response to the payment gateway which later passed to the cardholder.

• Payment gateways has tools such as geo location, OFAC list lookups and AVS checks to avoid any kind of unauthorized use or detect fraud.

Advantages of Payment Gateways –