Merchant Account Payment Gatways
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What is a Payment Gateway?
Due to the rapid growth of internet commerce it has become more important than ever for businesses and consumers to protect themselves when they complete transactions online. When you make purchases on the internet, most of the time you are utilising what is known as a payment gateway .
The service is often provided by 3rd party agencies that charge e-businesses and online retailers a certain fee per secure transaction. The process is a simple one and is similar to buying an item in a store with a credit card. But because this is the Internet and hackers and scoundrels abound, it is necessary for businesses to protect their customers and themselves from credit card theft and fraud.
In fact, the primary function of a payment gateway is to encrypt sensitive credit card information, thereby ensuring a safe transaction. Then the secure information can pass from the buyer to the seller and the payment can actually be processed.
How does it actually work? Well, without getting overly technical, the payment gateway transfers information from the website to the acquiring bank or Credit Card Company. But before that happens the website must transfer the requisite information to the payment gateway. All of these transactions are done over what is called a Secure Socket Layer encryption. To date, it has proven completely secure.
There are several reasons why online businesses pay to use these services. Probably the most important one is that most consumers will not purchase items from a site that does not offer secure transactions. For, while most buyers do not know what a payment gateway is or even what it does, they do know when a site provides a secure payment information page that is protected by one.