What A Payment Gateway Is and How it Works?

There are many things to consider when building an e-commerce website. Now that you've built your website and implemented a shopping cart that consumers can use to store the products they want to buy, you need to develop a method for accepting payments and confirming orders. 

The payment gateway is a basic requirement nowadays. This article explains what a payment gateway is and what steps you take to process a prospect's payment. You can now learn about CBD payment processing via http://axiompayments.net/cbd-payment-processing.

How to Choose the Right Payment Gateway for Your Business

Image Source: Google

A payment gateway is a service that handles the complex and technical process of encrypting and verifying a customer's payment card and then transferring some money from the customer to the merchant. The payment gateway runs in the background of the website and the user will never interact with the website directly. 

Instead, users are usually redirected to the payment page where the seller can request relevant information regarding the customer's name, address and payment card details. There are many online payment service providers out there, and most of them have created, tested, and added payments to your website if you needed their services.

After a user confirms an order, all their data is encrypted and sent to the merchant's server. From here, the merchant passes the encrypted information to the payment gateway, which performs a series of steps to process the transaction.

– First, the gateway sends transaction data to the merchant bank.

– The gateway then contacts the payment card issuer with transaction details.

– From here, the card issuer forwards the transaction details to the cardholder's bank.

– After receiving the transaction data, the bank decides whether to process the transaction or not.