Payment Gateway

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Payment Gateway

It is e-commerce service which authorizes credit or debit card payments for e-payments from online retailers or offline shops. It is similar to a point of sale terminal as in shops where payment is made. They protect financial credentials of consumers by encrypting sensitive credit or debit card information, for secured information passage between the customer and the merchant and also between merchant and the payment processor. Auhorize.Net, CyberSource, and VeriSign are companies offering payment gateways and in India PayU, CCAVenue are popular payment gateways for e-commerce websites.

It is usually a third-party service that is actually a system of computer processes that process, verify, and accept or decline credit card transactions on behalf of the merchant through secure Internet connections. It facilitates the co-ordination of communicating a payment transaction between various backend payment networks or banks. This enables the real-time online processing of credit cards or other payment types.  The payment gateway responds instantly to requests by either authorizing or declining the transaction.

Some basic considerations for choosing a payment gateway solution are

• Reliability – How reliable is the infrastructure that supports payment gateway platform?
• Security – Second to reliability would be the security of transactions. Payment gateway provider should be providing access to comprehensive card scheme anti-fraud tools such as CV2, AVS, 3D Secure and have real-time fraud screening on all payments. Security capabilities such as Tokenization should be available as well as allowing direct control and complete visibility on all fraudulent transactions. Secure payment gateway
• PCI DSS compliance – Another important security concern is the storage, processing and transmitting of cardholder details. Payment gateway provider should have PCI DSS Level 1 compliant (the highest possible security standard) as this reduces the likelihood of a breach.
• Support – This acts as businesses lifeline if any problems do occur usually by an online live chat system or FAQ’s or a supporting forum.
• Reporting – Being able to access account anywhere in the world via an online reporting portal should also be present with needed functionality and usability for providing visibility of the transactional data.

Payment gateway being part of credit or debit card processing, has the same role as described for credit or debit card processing earlier.