How Payment Gateway Api Works?

By Author: Subho Chowdhry
Total Articles: 449
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A payment gateway API (Application Programming Interface) allows a merchant's website or mobile application to communicate with the payment gateway to process transactions.

When a customer initiates a transaction on the merchant's website or mobile app, the API sends the transaction details (such as the amount, card information, and billing address) to the payment gateway. The payment gateway then communicates with the customer's card issuer to verify the information and authorize the transaction.

Once the transaction is authorized, the payment gateway API sends a response back to the merchant's website or mobile app indicating the outcome of the transaction (approved, declined, or error). If the transaction is approved, the API also sends a unique transaction ID which can be used to reference the transaction in the future.

In summary, the Payment Gateway API acts as a mediator between the merchant's website or mobile app, the customer's card issuer, and the payment gateway. It facilitates the transaction process by securely transmitting the required data and providing the merchant with the necessary information to complete the sale.

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