Payment Gateway Integration
Payment Gateway is an ecommerce service that authorizes payments for online businesses & retailers, just like a physical POS (Point-of-sale) terminal located at retail outlets. It encrypts sensitive information like credit card numbers to ensure that the information securely passes between parties and is required by owner of the site, whose integration is made by AlMubdi. It is a vital element in ecommerce site, without which no online payment is possible. There exist various categories of Payment Gateways with variable volume of efforts while integrating, whose cost varies accordingly.
Process:
It sounds simple but includes multiple complex steps:
- Order by the user when is placed on the website is sent to the merchant's web server in encrypted format via SSL (Secure Socket Layer) encryption.
- The transaction details from merchant's web server are forwarded to the concerned Payment Gateway.
- Payment Gateway passes monetary information of transactions to the merchants acquiring bank.
- Merchants acquiring bank forwards the information to the issuing bank (Credit card issuer to the customer).
- The bank issuing credit card then sends the response back to the Payment Gateway along with the information either the payment is approved or declined. In case of declination, the reason is also accompanied with the response.
- All backward steps are then followed, the response by the Payment Gateway to the merchant's server. At which the response is again encrypted again and communicated back to the customer informing him either the order has successfully been placed or not.
The entire process typically takes less than 5 seconds. At the end of the settlement period, the acquiring bank deposits total of the approved funds in to the merchant's account.
