What Is Payment Gateway & How Does It Work?

By Author: Subho Chowdhry
Total Articles: 457
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How online payments have become such a big part of our daily lives? Buying and selling products and services have become so much easier. All thanks to online payment. So, what enables these online payments to go through? A payment gateway. A payment gateway is a tunnel that connects your bank account to the platform on which you make a purchase. It is a software that authorizes you to conduct an online transaction. You can use different payment methods like net banking, credit card, debit card, UPI, or wallets. Let's understand how payment Gateway works. Here's an example. A customer places an order by clicking the checkout option. Next, the website takes the customer to the payment gateway where they can enter information about their payment method. Now the payment gateway authorizes the transaction making way for the bank to check for sufficient balance. If the balances were insufficient, the payment gateway displays an error message informing the customer about what went wrong with the transaction. If there is sufficient balance the transaction proceeds seeking more information about the payment. Lastly, the bank settles ...
... the money with the payment gateway, which in turn settles the money with the merchant and there you have it.

Ambit Technologies (P) Ltd. is a front-line full spectrum web and mobile development company providing result-oriented cost-effective solutions to enterprises - big, medium and small - spread across the world. It is also a reputed IT outsourcing solution provider having catered to customers spread across 78 countries of the world. Ambit Technologies (P) Ltd. strives to keep abreast of the latest of technologies and bring in innovative ideas constantly in the projects it undertakes.