What is a payment gateway and How Does it Technically Work

There has been a drastic increase in online payments widely post demonetization. Other than credit and debit cards, people are adopting other online payment options like wallets, net banking, and UPI.

Online payment is a mandatory feature for e-commerce platforms which can be availed by integrating with a payment gateway. If you haven’t started accepting yet, you might lose your potential customers. 

What is a Payment Gateway?  

A payment gateway is an interface that allows the buyer to do the payment and seller to accept the online payment. A payment gateway comes with multiple payment modes such as net banking, Credit/Debit Card, UPI, and Mobile Wallet. It is a mediator which conducts a secure transaction of funds from the bank account of the buyer to the seller’s payment portal. 

How does the payment gateway work?

A payment gateway encrypts sensitive information such as credit card details. It also ensures that the information reaches the merchant securely.  

Let’s have a look at how does the payment gateway works:

  1. A customer places an order by clicking on the “Buy Now” button.
  2. The e-commerce platform redirects the customer to the payment gateway where he or she chooses the payment method and enters the payment details.
  3. The customer is then taken to the issuing bank page or 3D secure page to request transaction authentication.
  4. After successful authentication, the transaction is authorized or declined by the bank or card (Master, Visa, Maestro, American Express) based on the balance available in the account of the customer.
  5. The payment-gateway sends the message accordingly to the merchant.
  6. The bank settles the money with the payment gateway which is later settled with the merchant based on the settlement period.

Once the entire payment process is completed, the customer gets a message of order confirmation.

What are the security measures taken by a payment gateway?

Secure Socket Layer (SSL):

eCommerce websites deal with sensitive details such as credit card information. These details are likely to get hacked. Hence it is necessary to get it encrypted. The SSL Certificate encrypts sensitive information and protects it from being hacked.

Secure Hypertext Transfer Protocol (HTTPS):

When you send sensitive information over an HTTPS connection, it prevents hackers from reading and modifying the data during the transfer between the browser and the web server using the Secure Socket Layer (SSL). The data is transferred in the encrypted format. 

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Payment Card Industry Data Security Standard (PCI DSS):

PCI DSS is a set of security standards designed to ensure that all companies that accept, process, store or transmit credit card information maintain a secure environment.

Top 5 reasons why you should use PayKun as your payment gateway:

Competitive pricing:

PayKun is a free payment gateway that does not charge any setup fee or annual maintenance fees. The transaction rate is 1.75% + GST for all the payment modes except for Credit Card and Paytm Wallet which is 2%.

Free Integration:

Unlike other payment gateways, PayKun does not charge a single penny for integration. Our technical team provides end-to-end integration assistance and integration kit for all the major e-commerce platforms.

Digital Security:

PayKun is compliant with the Payment Card Industry Data Security Standard (PCI DSS) Level 1. It is the highest level of assessment standard design specially to provide a secure environment for online credit/debit card payments.

Fast Settlement:

Settlement Cycle is one of the main aspects that a merchant looks for while choosing a payment-gateway. PayKun provides T+1 to the T+3 working days (T stands for transaction day plus 3 working days) settlement cycle based on the volume of the transactions and size of business.

Customer Support:

We understand the importance of reliable customer support.  Our customer support team makes sure that all your issues are solved as soon as possible. We provide dedicated attention to each and every client. Merchants can easily contact via call and email. We are available on chat 24*7.

If you think PayKun has everything that you are looking for in a payment gateway, sign up now.

Click here to register: bit.ly/paykunsignup

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