Q&A: What is a secure payment gateway?
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Q&A: What is a secure payment gateway?

Question by sean: What is a secure payment gateway?
How does it work to a merchant’s advantage?

Best answer:

Answer by happy
You need a payment gateway to process your on line payments as well as your normal credit card processing card company. They take your customer’s card details over the Internet and perform security checks on your behalf. It’s not to your advantage, because you have to pay twice and it’s not something you can do yourself.

It depends on the volume of business you transact through your site as to whether using a payment gateway is financially viable. For low volume transactions, a company such as paypal to take your online payments will be much much cheaper and it’s very straight forward. Google has also introduced a similar service recently.

Add your own answer in the comments!

Comment (2)

  • constance - May 4, 2014

    Hi there!

    Well, They provide a system that passes credit card data, authorization requests, and authorization responses over the internet using encryption technology.

    The transaction information is sent by the Payment Gateway secure server via leased line to the credit card network where the validity of the card is checked and the availability of funds on that account is verified. An authorization code is returned via leased line to the Payment Gateway; the authorization is encrypted by the Payment Gateway and transmitted in encrypted form to the web server of the merchant, which triggers fulfillment of the order.

    Rather than try and create their own Secure Web System, many Banks and Bank/Processor alliances will use a Secure Payment Gateway Provider to perform this task for them.]

    The other features of this licensed software are the functions provided to merchants online when they
    connect to the Secure Payment Gateway host; merchant can access their own account information, use a “Virtual Terminal” to conduct transactions, handle administrative tasks, etc. (These features all “live” on the provider’s Host computer system.).

    Hope this answer your question.

  • A secure payment gateway is processing credit cards over the Internet. It is one of the fastest growing segments of transactions today. This type of transaction or “card-not-present” transaction requires a special type of merchant account. Most credit card companies use special criteria to assess risk and they have a different fee structure because you never physically see the card. There are many benefits to set up your card-not-present account, below are just a few.
    Accept and process credit card payments real time
    Accepts all major credit cards
    Seconds to complete a transaction
    Process credit card transactions from orders received offline
    Issue credits
    Void transactions
    View your list of transactions online
    It works to the merchants advantage by allowing you to sell your produts on the internet and having protection for you the merchant and your customers.

    Do not pay for software. I use Simple Payment Systems. It is free software, free training, no annual fees, no start up costs. They beat all quotes from other companies.

    Always read any contract from a merchant account provider before you sign up with them.
    I am satisfied with Simple Payments Systems completely.
    Here is a link to view payment gateways.