What Is A Payment Gateway And How Does It Work

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What Is A Payment Gateway And How Does It Work?
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Instant online payments are one of the most
commonly preferred methods of payment in recent
times. And anyone who uses an online payment
application as a method of payment is probably
familiar with the term payment gateway solutions.
But for those who are unfamiliar with it, a
Payment Gateway is an online payment service that
is devised as a means to make and receive
payments. The primary role of a payment gateway
is to approve the transaction process that takes
place between a merchant and a customer. It
provides multiple payment options like a credit
card, debit card, QR code, wallet, etc to the
customer. While using an online payment
application, security is of the utmost
importance, and payment gateway solutions deliver
just that.
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• A payment gateway follows a specific procedure
  every time you make payment. Although the entire
  process requires mere seconds to complete, the
  actual process is a bit more complicated.
• The customer places an order and initiates the
  payment with the help of an online payment
  application. After this, it encrypts the
  customer's data and sends it to the merchant
  bank.
• The encrypted data then goes to the payment
  network, and then it is directed to the
  processing center.
• The processing center then approves the
  transaction.
• When the transaction is approved, the customer is
  notified that the transaction was successful.
• The merchant is then informed about the success
  of the transaction.
• The payment gateway solutions then settle the
  payment with the merchant, and the bank settles
  it with the payment gateway.

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Now that you know how an online payment
application works, also know this, different
applications have a different set of features
that they offer. Make sure you choose the right
payment gateway solutions that meet your
requirements.
THANK YOU