Have you successfully established yourself as an e-business owner and managed to set up your products to be displayed online? Payment Gateway works wonders, irrespective of the size of your business. Once the products are chosen by your customer and moved into the cart, the checkout process gets initiated. This is where you need a Payment Gateway for the execution of a seamless experience. The Payment Gateway allows the customer to choose the preferred mode of payment while purchasing from the merchant’s website. It ensures the secured transfer of funds from the issuing account to the acquiring bank account. You must be wondering about the process; well, we have got your back.This blog talks about the top 7 steps to know how a payment Gateway works.

Before understanding the process flow of a payment gateway it is important to understand the regulatory body behind the Payment Gateways. RBI guidelines regulate the functioning of Payment Gateways. Here are a few most important steps that you must know for a smooth customer experience.Here is the sequence of events that take place as soon as a customer decides to move ahead with the checkout process.

As a customer hits the checkout button, and confirms the mode of payment, the entered details of the customer get encrypted and shared further to the merchant’s website. The system that executed the encryption is known as the Secure Socket Layer and can only be configured with the payment Gateway that is SSL certified.

Once the information is passed to the Merchant’s payment Gateway, which further shared the encrypted details with the acquirer bank.

If the customer has chosen a card or wallet payment, the acquiring bank requests to release funds from the issuing bank by furthering the encrypted data.

In case the customer has chosen, net banking or UPI transactions, the encrypted Information goes directly to the linked bank’s server.

The customer’s bank, on reviewing the request check the relevant account with the fund sufficiency and authenticate it by CVV or PIN match.

The transaction is approved if the transactions fulfil all the protocols, but it gets declined in case of data mismatch or non-availability of funds. The response is coded and sent back to the payment gateway.
For a small business owner, vital importance is placed upon choosing the right Payment Gateway to ensure that you earn and build on the customer base in the limited marketplace in which you operate. Here is a detailed handy checklist to choose the Best Payment Gateway. Make an informed decision to have an efficient payment processing system. We at Pay10 offer innovative, ultra-proficient, and multifaceted FinTech services empowering your business with easy, reliable, and secure digital payments.

The payment gateway, further shares the response with the merchant by approving or declining the transaction.

• Merchant: The business or any seller who has a website.
• Cardholder: The customer who is willing to make the purchase.
• Issuing bank: The financial institution that holds the customer’s account or an account connected with the debit account.
• Acquiring bank: The financial institution that holds the merchant’s account.
• Card schemes: The credit card companies that manage the card.

An acquiring bank is a financial institution that holds merchants’ accounts and possesses card payments on merchants’ behalf. In layman’s terms acquiring a bank is the bridge that smoothens card payment from the issuing bank within an association. In short, it establishes a thorough infrastructure for merchants to accept payments that are made via cards. Acquiring bank plays a very significant role when it comes to allowing payment, it asks the payment processor to connect with the issuing bank as the customer fills in the payment details. The processor sends the payment request further to the card network followed by the issuing bank. Based on the availability of the amount and card status the payment gets approved or declined.

An Issuing bank is a financial institution that issues credit or debit cards to its clients and allows them to seamlessly make purchases using the cards. The issuing bank is a mediator between the customer and the card schemes such as Visa, MasterCard etc. Issuing bank also takes care of the financial security of the cards and assumed the responsibility to check the creditworthiness of the cardholder to pay off the debt they accumulate. If the customer has sufficient funds and hasn’t exceeded his card limit, the Issuing bank will send its approval to the Acquiring bank and lets the customer complete the payment

Pay10 is one of the leading Payment Gateways that not only empowers your business with technologically advanced features but also makes sure that your concerns are solved in real-time. The USP of the brand is that stays updated as per the needs of its customers and associates. Few of t many best services that Pay10 features are:

Pay10 ensures the security of all the digital payments that are conducted under its ambit. With cutting-edge technology, we keep ourselves ahead of the competition. We are PCI DSS-certified (Payment Card Industry Data Security Standard) entity and we have been consistently upgrading ourselves to satiate our client’s demands. With the easy onboarding mechanism, our payment gateway functions with the server hosted by AWS, which uses Comodo’s 256-bit SSL (Standard Sockets Layer) technology for data encryption. Besides, we have a set of strict in-house security guidelines to ensure the confidentiality of customers’ information. Now that you have come across 7 Steps to Know How a Payment Gateway Works it would be easier for you to take a sound decision about deploying the best payment Gateway for yourself. For more information related to digital payments feel free to contact us.