Payment gateway integrates with e-commerce websites. It is a web-based service, which is helpful to collect the required payments from customers at checkout. At the checkout page, it enables to accept many payment options like a debit card, credit card, online banking and also digital electronic wallets. Payment gateway supports various services like capture, chargeback, authorization, voids, refunds, and authorization only. Depending on the provider, the settlement dates for payout will vary.
The card issuing bank will get the encrypted user data from the gateway. The gateway provider has to wait until they get an authorization response from the bank. Once it is received, it is sent to the merchant account, and the charge will be displayed on the user’s card. The bank will send a notification about whether the authorization is declined or accepted. So, such providers are open to high risk. To overcome this, the website should have payment gateway for tech support, which can instantly help users whenever required
Some providers within the gateway will allow creating and saving their user’s profile so that customers can access whenever they require it for speedier and easier process. An option of virtual terminal is built by the payment gateway providers using which customers can complete their transaction. By using this option, provider can also set up installment and recurring payment plans, which are very easy to understand and implement. There is a tool called management tool, which enables merchants to store all the customer’s account details safely on the gateway provider server for easy and faster checkout.
Interaction between Payment Gateway and Shopping Cart
There are different stages through which payment gateway and shopping cart enter a transaction cycle. Customers can choose and purchase any item from this shopping cart. All the charges are calculated and if applicable, shipping and handling charges are also included in the total cost of the order. Once this process is completed, the customer places an order; the shopping cart then redirects customers to a checkout page where users have to enter and give the required details. After collecting all the required details, it is managed by the gateway providers.
At the end of the day, all the authorized transactions will be divided as batches and sent to the processing bank for the final settlement. Each and every provider has their own processing fee or charge, which will be deducted from the settlements. The final report will be sent to the respective gateway. So, this entire process from authorization to settlement will take 2-3 business days.