What is Payment Gateway and How it Works?

Payments gateway is a bridge through which we transfer our money from our account to the company account when we are buying a service or a product of that company. Payment gateway often consists of multi-level encryption that prevents any third party to participate in the transaction process. Payment Gateway is a third party application that takes your money from your bank and transfers it to the company account. It is a most popular way to transfer money on the online business. E-commerce website mainly uses and prefers this way of receiving money.

payments gateway

How Payment Gateway Works?

Payment Gateway utilizes the simple method of money transfer the payment request is initiated by the customer to the website. The website uses two methods in receiving money.

  1. The website delivers the data packets of the collected information from the customer to the Payment Gateway, then the money transfer initiate. This usually is used by the popular website that has a lot of trust in the market. E-commerce giant like Amazon is the best example.
  2. Another method is by redirecting the customer to the Payment Gateway website where the customer himself initiates the payment.

Then the Payment Gateway transfers the received money to the company account after holding it for some time.

Payment Gateway V/S Traditional Gateway

Payment Gateway is a relatively very new method of payment. The traditional method of payment consists of Cheque, Account deposit, NEFT etc. This method is time-consuming and often very slow and requires a lot of manpower. When we talking about money, a business must cut their cost by setting up an easy, fast, efficient and customer friendly way to receive the money. This is where the Payment Gateway comes in and makes the life of the company as well as the customer easy. As I have mentioned the complete process of money transfer in the above paragraph, there is no real reason why business should choose something else over the Payment Gateway until and unless there is a new technology introduced to pay money even more efficiently.

Charges regarding Payment Gateway

Payment Gateway charges commissions for every transaction made. This commission may vary depending on the Payment Gateway chosen by the company. There is also a maintenance charge involved with this and an initial setup cost. In the initial setup, the Payment Gateway generates a unique id that is used to track all the necessary payment details. SomePayment Gateway offers no initial setup cost but some may charge. And maintenance charges also vary between the Payment Gateway.

Payment Gateway Company list

There are a lot of Payment Gateway but some of the most popular Payments Gateways are-

  • CCAvenue
  • EBS
  • Citrus Pay
  • DirecPay
  • Atom
  • Zaakpay
  • PayUmoney
  • HDFC Payment Gateway Services
  • ICICI Payseal
  • PayUbiz
  • Whizpay
  • Razorpay

Is Payment Gateway secure?

The answer to this question is yes, absolutely. Payment Gateway is a very safe method of transferring money from the customer to the company. All the data that is transferred through the Payment Gateway is highly encrypted and the encryption key is only provided to the receiver’s side. This encryption is impossible for a supercomputer to crack as it can take thousands of years to crack this but you might have heard that the hacker hacked the bank account and transferred to his account. This is usually done when the customer who is inputting his information is careless when transferring his money. Very common method hacker uses is keyloggers and social engineering by using these methods the hacker can easily access the data of the customer and use it to exploit and gain for his own purpose.

We at iConnect Solution offer payment gateway integration with each of new ecommerce website development for ease of receiving payment to our customers. Not only at ecommerce websites but also you may integrate payment gateway, which is secure, fast and reliable way of receiving payments.