How does a payment Gateway work?

In fact, there are several important steps involved in the process:

Let’s see how it works.

Step 1: The customer submits an order with card information.

Step 2: The card information with payment details are relayed to the gateway.

Step 3: The payment processor further relays the card information and charge details to the bank terminal.

Step 4: Based on the transaction status a unique response is generated and sent back to the processor from the bank terminal.

Step 5: If the transaction is successful, the bank credits the processor’s account.

Step 6: The processor in turn settles the amount to the merchant after deducting a pre-agreed commission.

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