Payment Gateway
Payment Gateways are an application service provider that allows authorization of payments for all kinds of businesses, including internet based and traditional retail. Payment gateways are best described as a the link connecting the store's credit card terminal to the issuing banks.
Payment gateways offer protection for the credit card by encrypting the credit card numbers as a way to ensure that the information is securely passed from the customer to the merchant onward to the bank. Payment gateways connect the bank housing the customers information to the millions of merchants tied into the networks.
Payment Gateways provide the following functions:
* A customer places order via a website or over the phone.
* If the order is done through a website, the customer's browser encrypts the information that is to be sent between the browser and the merchant's server. This is done through a SSL (Secure Socket Layer) encryption.
* The merchant forwards the transaction details to their payment gateway. This is the 2nd SSL encrypted connection that the transaction goes through enroute to the payment server hosted by the payment gateway.
* The payment gateway forwards the information from the transaction to the processor used by the merchant's acquiring bank.
* The processor forwards the transaction information to the card association (Visa/MasterCard, etc.)
* From there, the card association routes the transaction to the correct card issuing bank.
* American Express and Discover cards have a different authorization route. The processor acts as the issuing bank and is responsible for providing the approval or denial to the payment gateway.
* The credit card issuing bank receives the authorization request and sends a response back to the processor following the same process as the initial request for authorization. The responce includes a code, whether the transaction is approved or decline. If the transaction is declined, the response will also include a reason, such as insufficient funds, or bank link not available.
* The processor forwards the response to the payment gateway.
* Once the payment gateway receives the response, it forwards it on to the website or whereever the transaction was placed. At this time the information is displayed to both the cardholder and the merchant.
* The entire authorization process typically takes 2–3 seconds
At the end of business, the merchant submits all their approved authorizations, called "batching", to their acquiring bank for settlement.
* The acquiring bank deposits the total of the approved transaction into the merchant's bank account.
* The total process from authorization at point of sale to funding the merchants bank account typically takes 3 days.
Many payment gateways also offer tools that monitor orders for fraud and can calculate tax in real time prior to the authorization request being sent to the processor. Some of the most common ools to detect fraud include delivery address verification and basic AVS checks
For more information on the eCheck products that KBC offers, contact Keystone Bank Card and one of our representatives will speack to you shortly.
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- 01.
Merchant ServicesOur Strong Banking Relations Allow Us To Handle Most Domestic And High Risk Businesses.
- 02.
Processing RatesOur Wholesale Buying Power Allows Us To Offer The Lowest Rates In The Industry.
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- a) Merchant Services
- b) Rates
- c) Terminals
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