Throughout the 21st century, the trend of businesses increasingly turning to the digital market has become very clear. This has intensified during the pandemic and made it necessary to optimize sales automation and security processes .
Therefore, it is precisely in this scenario that fundamental tools for digital commerce appear, such as payment gateways.
These platforms play a crucial role in facilitating financial transactions between businesses and consumers , ensuring a smooth and secure shopping experience.
In this article, we’ll take a closer look at what payment gateways are , how they work, and why they’re so important for your online operations. Keep reading!
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What are payment gateways?
A payment gateway is a technology thailand whatsapp number data that allows businesses to process online payments securely and efficiently.
It acts as a bridge between the merchant, the customer and the financial institutions involved in the transaction, facilitating the transfer of sensitive data and authorizing the financial transaction.
Basically, the payment gateway is responsible for capturing the customer’s payment information , encrypting it, routing it for approval, and then sending a response to the merchant and customer about the status of the transaction .
How does the payment gateway work?
Transactions on a payment gateway how to create a sales campaign on whatsapp? follow these steps:
- Capture payment information: The customer enters their credit card, debit card or other payment details into a secure form on the merchant’s website or app.
- Sending data to the gateway: Payment information is and sent to the payment gateway via a secure connection (SSL).
- Transfer to financial institutions: The payment gateway forwards the payment data to the relevant financial institutions, such as the customer’s credit card issuing bank and payment networks (e.g. Visa, Mastercard).
- Transaction authorization: Financial institutions receive the data and check whether there are sufficient funds in the customer’s account or whether the transaction can be approved according to security parameters. If the transaction is approved, the institution issues an authorization code.
- Returning the response to the gateway: The payment gateway receives the response from the financial institution and forwards it to the merchant and the customer.
If the transaction is, the payment is and the customer receives a confirmation of the purchase. If the transaction is, the customer is notified and can try again or use another payment method.
These steps ensure that transactions occur securely, protecting your customer’s financial information and minimizing the risk of fraud for your business.
What is the difference between a payment gateway and a payment intermediary?
Although the terms “payment intermediary” and “payment gateway. Are interchangeably, there are important frist database between them :
A payment intermediary is a service that manages the entire payment process on your business’s behalf , from collecting customer card details to transferring funds to the merchant’s account.
