With the e-commerce industry growing rapidly, there is also the need for payment gateways. A payment gateway makes the transfer of information from cardholder making the purchase on a website to the acquiring bank, which is also known as the front-end processor. There are several duties to processing a card payment. The information is then prepared and sent to the payment gateway where it is processed, the card company then receives the information, and when approved, the transaction is completed. This happens within seconds and the customer receives authorization that the transaction is completed or is informed the transaction is declined. There are several steps to the payment process.
BEFORE THE PAYMENT GATEWAY PROCESSES PAYMENT INFORMATION
When a customer orders merchandise or pays for a service, the information begins to process when the order is submitted online or over the phone. When the information is entered online, the information must be encrypted by an SSL (secure socket layer). This is done by the browser and sent to the merchant’s website server. When the merchant receives the information, it is encrypted by an SSL, and then sent to the payment gateway.
THE PAYMENT GATEWAY PROCESSES PAYMENT INFORMATION
The payment gateway receives the payment information from the order. The card information is encrypted and sent to the payment processing company. From there, it is sent through a SSL to the card company’s issuing bank. There is immediate processing and the card company will approve or decline authorization of the transaction and send a code to the payment processing company. When the transaction is declined the code will reveal the reason. Some of the reasons for a card to be declined are unauthorized use of the card, insufficient funds in the account, and an expired card. This information is sent from the payment processing company to the payment gateway and then forwarded to the website.
AFTER THE GATEWAY PROCESSES PAYMENT INFORMATION
Periodically the merchant presents all the approvals in a batch to be settled with the acquiring bank. The approved funds are then deposited in the merchant’s bank account. It can be with the same bank as the acquiring bank or a different bank. From the day of the authorization to the day the settlement is deposited, will be about three business days.
Merchant Data Systems is a payment processing company that will provide various payment processing services for e-commerce transactions. These services assure security and promptness of payment. It’ll also reduce the risks of charge backs and fraudulent use of cards.
Tags: 3rd party merchant account, accept credit card, accept credit card merchant account, accept credit cards, accept credit cards by phone, accept credit cards for business, accept credit cards free, accept credit cards now, accept credit cards on line, accept credit cards on website, accept credit cards online, accept credit cards payment, accept credit cards payments, accept credit cards today, accept credit cards virtual terminal, accept credit cards website, accept credit cards without a merchant account, accept major credit cards, accept online credit cards, accepting credit card, accepting credit cards, accepting credit cards online, account merchant, account security, ach merchant account, affordable merchant account, apply for merchant account, authorize net merchant account, bad credit merchant account, best merchant account, best merchant accounts, business accept credit cards, business merchant accounts, canadian merchant account, canadian merchant accounts, card merchant account, cheap merchant account, cheap merchant accounts, cheapest merchant account, checkout merchant account, compare merchant account, compare merchant accounts, credit card merchant account, credit card merchant account services, credit card merchant accounts, credit card processing, credit card processing merchant account, credit cards accept, debit card merchant account, discount merchant account, e commerce merchant account, e-commerce, easy merchant account, Ecommerce, ecommerce accept credit card, ecommerce merchant account, ecommerce merchant accounts, ecommerce payment gateway, ecommerce payment gateways, fast merchant account, first data merchant account, free merchant account, free merchant accounts, get a merchant account, get merchant account, high risk merchant account, high risk merchant accounts, how to accept credit cards, instant merchant account, international merchant account, internet merchant account, internet merchant accounts, linkpoint merchant account, low cost merchant account, low cost merchant accounts, master card merchant account, mastercard merchant account, mastercard merchant accounts, merchant accept credit cards, merchant account, merchant account accept credit cards, merchant account accepting credit card, merchant account application, merchant account authorize, merchant account canada, merchant account chargeback, merchant account comparison, merchant account credit, merchant account credit card processing, merchant account credit cards, merchant account equipment, merchant account fees, merchant account fraud, merchant account gateway, merchant account internet, merchant account payment gateway, merchant account payments, merchant account processing, merchant account processor, merchant account processors, merchant account provider, merchant account providers, merchant account quote, merchant account rates, merchant account review, merchant account reviews, merchant account sales, merchant account service, merchant account service provider, merchant account services, merchant account set up, merchant account setup, merchant account solution, merchant account solutions, merchant account terminal, merchant account terminals, merchant account virtual terminal, merchant accounts, merchant bank account, merchant card account, merchant credit account, merchant credit card account, merchant online account, merchant processing account, Merchant Services, merchant services account, merchant system, merchants account, mobile merchant account, new merchant account, nova merchant account, on line merchant account, online credit card merchant account, online merchant account, online merchant accounts, online store, online store processing, payment gateway, payment merchant account, Payment Processing, payment processing company, payment processing services, paymentech merchant account, payments online, phone merchant account, pos merchant account, processing, processing services, retail merchant account, retail merchant accounts, secure merchant account, secure online store, secure payment processing, shopping cart merchant account, small business accept credit cards, telemarketing merchant account, telephone merchant account, third party merchant account, top merchant account, top merchant accounts, virtual merchant account, web merchant account, wireless merchant account, wireless merchant accounts
