Payment processing for an online purchase can be done much like the transaction which would take place between a customer and merchant in any corner store with the help of the secured payment gateway system. In the online world the customer visits the website, selects the item they wants, and then goes through that website’s check out process. In this process the card holder inputs their personal and credit card details and the online merchant will send the request to the processing bank through the payment gateway which is the essential aspect while accepting online credit card payment. The payment gateway will encrypts the information and transmit it to the online credit card payment processing bank with a request for authorization approval. It is then send to the card association which either approves or declines the request which will be send back to the payment processing bank which in turn sends the transaction result back to the merchant business. If the merchant gets the authorization response to approve the transaction the merchant can ship the item by depositing the receipts to the payment processing bank and the payment processing bank will credit the merchant account and submit the transaction to the card issuing bank. Thus an e-commerce payment gateway is equivalent of a physical credit card machine that facilitates the transmission of data between the website and the acquiring bank, quickly and safely.
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