Question by James Bond: which technology is used for payment gateway ?
I mean there is technology that transfers money. We use some technology there are lots of its just tell me some so i can know something about
Best answer:
Answer by stymiee
This isn’t a project you would write with a language like PHP. You would need to use a higher level language such as C or C++. Something compiled that will be much faster and more robust then PHP. You can power your web based front end with PHP (i.e. user control panel) but the backend stuff, including payment processing, will need to be in the higher level language. You’ll also need an enterprise level database as open source databases could never handle a task like this. Basically you’re looking at using an Oracle database which is expensive but also designed for this sort of thing.
Your first major issue will be PCI DSS compliance. This is the security practices dictated by the major credit card companies (Visa, MasterCard, Amex, Discover Card, JCB). It dictates how you will secure your data in terms of hardware, software, and practice. It is expensive to do and maintain. You will need to hire a company to certify your compliance on a regularly scheduled basis. Failing your certification can mean you get shut down.
Your second major issue will be getting certified by the processing networks. To be a successful payment gateway you must be certified on every processing platform and there are at least 16 of them that I can think of off of the top of my head. Being certified takes about two months for each. You can do them simultaneously but you would be looking at at least a year to be certified on all of them. And each one has a different API so you will need to code your payment gateway to work with all of them.
Your third major issue will be the data you store. Not only do you have the PCI DSS issues to deal with, but you will need to capture and store every transaction that runs through your system for years. That kind of data will require tons of storage space (that will also need to be secured).
Your fourth major issue will be processing volume. A gateway must be able to perform transactions in a second or less. This means your hardware solutions must be able to scale for heavy traffic especially over the holiday season. It will need to be able to handle hundreds of transactions per second (thousands if you become successful). That is a big reason why you’ll need to use a higher level language over PHP.
Your fifth major issue is that you will need to create a powerful yet easy to use API for web developers to use to connect to your payment gateway. They need to be able to do everything a credit card terminal can do through code. Documenting that should be fun! 😉
Minor issues include:
– Making sure you are ECI compliant (Electronic Commerce Indicator is required for all Internet transactions)
– Securing all data transfer (SSL)
– Offering a user control panel
If you want to be successful you will also need to have the following in place:
– Anti-fraud tools
– Have a reseller program in place
My estimations would say it would take 2 – 3 years to build your own payment gateway and get it up and running. That includes being PCI DSS certified, certified on every major processing platform, and to create your API. Costs would be around $ 250,000 as the developers you would need to write that kind of code will not be cheap plus you will have large infrastructure costs (hardware and software) just to run everything.
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Question by M Shadows: What is the difference between Merchant Account and Payment Gateway?
Online Shopping
Best answer:
Answer by imisidro
Merchant account is a bank authorized account which allows you to accept major credit cards, electronic checks, etc. Note though that rates banks will charge you are higher if you are operating an online store because the “card is not present”
Payment Gateway is a software which actually processes customer order information, address, credit card number, etc. The data is sent to a credit card authorization network which verifies that the credit card is valid and verifies that the shipping address matches the billing address. Example of payment gateway is Authorize.net http://www.authorize.net
If you have only a few items, you can operate without a payment gateway and only with a merchant account — as long as you can manually assess the order and identify signs of fraud. All you need is a merchant account and a terminal where you can manually key in the credit card information
With a payment gateway, the order and credit card information is directly sent to your merchant account. So if the customer pressed the BUY NOW button twice, their card can be charged twice, as against when you manually key in the number, you can ignore the duplicate order
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Question by kavinrocky@1: Best Payment Gateway Provider?
My site is a freelancing site and i need the best Payment Gateway Provider..
These should be included :
Check – Regular Mail
Check – FedEx Overnight
Paypal
E-Gold
Moneybookers
Payoneer Debit Card
Bank Wire
Thanks
Best answer:
Answer by Michelle C
sitepoint.com/article/money-where-mouse-is-gateways
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Question by bhu: What is Payment Processing engine and Payment Gateway?
Can a corporate setup its own gateway or engine to process online money transactions. How is it done and what would be the cost to setup one.
Best answer:
Answer by ERAZ
Through payment gateway you can accept online payments from your clients on your website like 2co.com, moneybookers.com etc and they charge some percentage for providing this service like (.05$ +10%) for transaction > 100$ but exact figurs vary from gateway to gateway and yes you can setup your own for this you need to open merchant account in any bank. but my advice is to go for 2co as they also accept paypal along with credit cards and their fee is less than others and also taking services of any gateway is easier than settingup your own as gateway also provide security for not only client credit card but also for you and client feel more comfortable with well known gateways.
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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.
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Question by Jenny: What good will payment gateway service give my business?
I am uploading my very first online store in the next few days. Friends advise me to get a payment gateway. What good will payment gateway service give my business?
Best answer:
Answer by Charlotte
A payment gateway serves as your first line of defense against Internet fraud transactions on the Net. It secures your financial transactions away from the prying eyes of hackers. Though you will have to pay some corresponding fees for the service, the benefits far outweigh the cost. In other words, as an online shop owner, you can’t afford not to have payment gateway service. It’s a must for all online merchants.
For further reading, kindly browse the link provided below.
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Question by Paul: What is a good payment gateway slash merchant account solution?
I am looking for a payment solution for my e-commerce shop. I am interested in a gateway / merchant account combo.
I have heard of Total Merchant Services.
I really need some recommendation.
Thanks!
Best answer:
Answer by mss
Payment gateway is a part of an eCommerce merchant account. A merchant account is the service that enables you to accept card payments. Payment gateway is an online service that merchant account providers use for transferring payment details between the merchant website and the bank processing center. The payment gateway will be integrated directly with your shopping cart. The integration process varies by providers and will be handled by their technical staff. Generally the following documents will be required during a merchant account application process:
1. A merchant application – you will have to complete and sign this form. It includes general information about you and your business.
2. A copy of your organization’s Articles of Incorporation, unless you are a sole proprietor.
3. A copy of a voided check for the account that you will want your money to be deposited into.
4. Business or personal financials. Your tax returns for the last two years may be requested if your business is new.
There are many things you need to know when selecting a payment processing provider. The most important issue is processing costs – you certainly don’t want to be overcharged. The costs are comprised of various fees and charges and I have given you a breakdown below.
1. Discount rate – the amount a merchant is charged by his acquirer for processing the merchant’s transactions. It consists of a percentage fee (e.g. 2.19%) and a fixed, per transaction, fee (e.g. $ 0.25). You should not agree to anything higher than 2.19% + $ 0.25.
2. Authorization fee – another “per-transaction” fee. You should not pay more than $ 0.12.
3. Application and set up fee – one-time fees to apply for and set up your account. You should NOT pay ANY set up or application fees!
4. Monthly maintenance fee – as the name suggests, it is charged monthly to keep your account on file. You should not be paying more than $ 10.
5. Support fee – another monthly charged for customer service. You should NOT pay ANY such fees.
6. Virtual terminal fee – a virtual terminal is the application that you will open in your browser and enter the payment information as you are taking it over the phone or getting it from a form you got in the mail. It should be provided for free.
7. Gateway fee – it should not cost you more than $ 15 per month.
Once your selection is made and all required paperwork is submitted, the set up of your merchant account should take no longer than two business days.
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