For Internet Merchant Accounts to be able to process card payments, they need a replacement for the physical point-of-sale terminal. A ‘payment gateway’ facilitates the transfer of funds from the customer’s account to that of the Merchant Account. A payment gateway can be either a virtual desktop download or a real-time processor requiring access to the internet.

But where is your money during each stage of the process? Here is the process involved with facilitating card payments through a payment gateway:

  1. A customer enters their card details into an online form or through a third party application.
  2. The data is then encrypted by the browser and sent via SSL to the merchant’s webserver.
  3. The card details are then forwarded to the payment gateway, again via an SSL connection.
  4. Information is then transferred through the payment gateway to the payment processer used by the merchant’s acquiring bank.
  5. The information is then passed to the card association (Visa, Mastercard, American Express etc)
  6. Fraud and debit checks are then undertaken and the payment is either authorised or declined.
  7. This information is then passed back from the processer to the payment gateway.
  8. Acting as a ‘go between’, the payment gateway forwards the authorisation to the website.

N.B Steps 1-8 usually take under 5 seconds 

  1. The merchant completes the order and fulfils whatever purchase is made
  2. All authorisations are submitted by the merchant in a ‘batch’ at the end of the day.
  3. The acquiring bank settles the request with the card issuer and desposits the funds into the Merchant Account.

N.B Steps 9-11 usually takes up to 3 days.

2018-07-09T09:55:50+00:00 Frequently Asked Questions|