How to setup a Online payment gateway?

Answer 1

To set up a payment gateway, you must first have a merchant account. You get this from a merchant account provider, which is basically a online bank account which is used by payment gateway to transfer the customer's payment in this account for some time.After that it is transferred to merchant's bank account. Once you have an account you must choose which payment gateway you want use. Some payment gateways provide both merchant account and payment gateway while some provide as a rhird party payemnbt gateway service. Contact them and they will tell you what credentials they need to set you up with their gateway. Send them your merchant account credentials and you should be up and billing in no time. If you're looking for an easy to use gateway and all in one, Emvantage payment gateway is best suited and trusted by everyone.They have their own gateway to go with their recurring billing software. Provide full customer support and have APIs to integrate with all shopping cart kits.

Answer 2

When it comes to how an online payment gateway works, it always follows the same protocol for processing payments.

When a consumer orders a service or product from a merchant who uses a payment gateway, this occurs.

The payment gateway goes through a number of processes, from entering card information through money pouring into the merchant's account and settling.

STEP 1: After placing an order online and completing the payment process, the customer must provide credit/debit card information.

STEP 2: The card information is encrypted and transmitted between the browser and the merchant's web server using Secure Socket Layer (SSL) encryption.

STEP 3: The merchant then sends transaction information to their payment gateway, which uses an SSL secured connection to the payment gateway's payment server.

STEP 4: The payment gateway transforms the XML message to ISO 8583 or a variant message format (understandable by EFT Switches) and then sends the transaction information to the merchant's acquiring bank's payment processor.

STEP 5: The card association (Visa/MasterCard/American Express) receives the transaction details from the payment processor.

STEP 6: After receiving the authorization request, the credit card issuing bank confirms the credit or debit available, and then sends a response back to the processor (using the same method as the authorisation) with a response number.

STEP 7: The processor then sends the authorization answer to the payment gateway, which accepts it and passes it forward to the interface that will process the payment.

Authorization, or "Auth," is the name given to this procedure. In typically, this takes about 2-3 seconds to complete.

STEP 8: The merchant then fulfils the order, and the procedure is repeated, but this time the authorization is "cleared" by completing the transaction.

The “Clear” is usually triggered only after the merchant has completed the transaction (I.e. shipped the order).

The issuing bank then ‘clears' the ‘auth' (i.e. changes the auth-hold to a debit) and prepares to settle with the merchant acquiring bank.

STEP 9: The merchant submits all of their authorised authorizations to their acquiring bank in a "batch" (at the end of the day) for settlement via its processor.

If the corresponding "Auth" has not been expressly "Cleared," this generally lowers or "Clears" it.

STEP 10: The credit card issuer submits a batch settlement request to the acquiring bank.

STEP 11: The credit card issuer pays the acquiring bank a settlement amount (the next day in most cases).

STEP 12: After that, the acquiring bank puts the whole of the approved monies into the merchant's designated account (the same day or next day).