How Payment Gateways work?
A payment gateway is a technology used to securely process online transactions and authorize payments between customers and merchants. Below is a simplified details how payment gateways work: 1. Customer initiates a payment: The customer visits the merchant's website or app and selects a product or service to purchase. 2. Order details sent to the payment gateway: The merchant sends the order details (such as the purchase amount, customer information, and payment method) to the payment gateway via an encrypted connection, usually using an API. 3. Payment gateway connects with the acquiring bank: The payment gateway securely forwards the transaction request to the acquiring bank (also known as the merchant bank) or the payment processor that the merchant has partnered with. 4. Authorization request sent to the card association: The acquiring bank sends an authorization request to the appropriate card association, such as Visa or Mastercard. 5. Card association verifies the tra...