What is Payment Gateway | How does this work

Hello friends, today’s post will increase your digital knowledge a little, because in this post we are going to give you information about Payment Gateway, such as what is Payment Gateway,

Although you must have also used payment gateway in some form or the other, but generally we ignore many things, or do not pay attention to it, or let’s say because of lack of information. We miss out on many things.

But there is nothing to worry, because by reading this post you are going to get complete information about payment gateway. So let us now know, what is Payment Gateway.

What is Payment Gateway?

A payment gateway is a technology or service through which money is sent or received online. In other words, a payment gateway is a service used to send and receive money online between a customer and a merchant, or you can also call it a means of collecting digital or online payments for a business. .

Whenever you do any online transaction, in which your Debit Card, Credit Card, Net Banking or Payment Wallet is used, then that transaction is possible only through Payment Gateway.

Let us now understand this with a small example, suppose you have to buy a shirt for yourself from an ecommerce website like Flipkart or Amazon, then after looking a lot in that ecommerce website, you have to select one shirt as per your choice. have done it.

Now finally when you want to buy that shirt, a page related to payment will open in front of you, in which you will be asked to fill the information of your Debit Card, Credit Card etc. such as Card No, Expiry Date, CVV etc., And after completing the process, you will also make the payment. So here the payment gateway is done to securely transfer the payment made by you to the merchant’s account.

Why payment gateway is necessary

Payment Gateway provides an easy and secure platform to a customer or a businessman through which he can buy and sell goods online.

Today, where online business is dominated, people buy or sell products through the Internet, so it is natural that if the transactions are done online, then the online transaction of money can be done safely only through the payment gateway.

With the increased ease of PG, we are able to buy or sell goods online within minutes, because the payment gateway here encrypts and protects the customer’s data such as financial information, that is, keeping all the security standards in mind. Payment Portal is made available to.

Today, the transaction of all ecommerce companies is managed only through the payment gateway, that is, without it it is difficult to even think about ecommerce.

What is Payment Gateway
What is Payment Gateway

How payment gateway works. (How Does Payment Gateway Works)

As now you must have known a lot about payment gateway, so let us also understand its working, how it works. After you select your goods on the ecommerce website, add it to the cart and checkout, the payment process starts from there.

  • The checkout point of the ecommerce site, which is the last stage of online shopping, is where the payment gateway is used by the merchant to receive payment from the customers.
  • For this, a payment form opens in front of the customer, in which the customer has to fill the information of his debit or credit card, that is, through whichever means he can pay for the goods purchased.
  • As soon as the customer fills the payment form, the sensitive information entered in the form is encrypted and kept safe by the payment gateway.
  • The gateway then transfers that encrypted information to the merchant’s bank, and this information is sent by the bank to the processing center.
  • The processing center checks the received information with that credit or debit card issuer, and the issuer approves or declines the payment if the information is found to be correct.
  • After this, that information is sent directly to the payment gateway, and the payment gateway passes the information to the ecommerce website, where the customer sees the payment approval message, this whole process is completed within a few seconds. Is.

Major Payment Gateway Companies in India

Like all over the world, online mediums are used a lot in India, whether it is shopping, or paying the electricity bill of the house, every facility is available online, and people can also take advantage of those facilities. Used to be.

So the following are the payment gateways that are commonly used for payment collection by shopping sites and service portals in India.

  • CCAvenue Payment Gateway:- CCAvenue was started in 2001, and today it has become a famous and largest payment gateway company in South Asia including India, which is used by about 85 percent of Indian ecommerce sites. It supports more than 200 payment options, and also supports websites and apps.
  • Instamojo Payment Gateway:- Instamojo is also an Indian payment gateway service provider company, it was started in 2012. It is more known for its user friendly interface, and in this also the customer gets 100+ payment options, and it can also be integrated with the website or mobile app.
  • PayUmoney Payment Gateway:- PayUmoney is also another best payment gateway service like other payment services. It also supports 100+ payment options, and can be integrated with websites and applications.
  • Paytm Payment Gateway: – Who does not know the name of Paytm in India today, it is one of the best payment gateway service used in India. Paytm Payment Gateway is a user friendly service that supports almost all domestic debit and credit cards in India. Paytm can also be linked to the website or app.
  • PayPal Payment Gateway:- PayPal is a very old and popular name in payment gateway services. PayPal was founded in 2002 and is used all over the world today. PayPal operates in over 200 countries, and has a large customer base that spans the globe, and supports almost all international debit-credit cards. PayPal can also be integrated with websites and apps like all other payment gateway services.

Advantages of payment gateway

The payment gateway has the following advantages.

  • Payment can be collected by integrating it with website and app.
  • Payment processing gets faster by using it.
  • The customer gets multiple payment options.
  • A lot of time is saved.
  • It can be used to work globally.
  • Payment transactions are done securely.

Friends, you know what is Payment Gateway, how it works, and what are its benefits. Hope you enjoy this information. If you have any questions, or suggestions, you can let us know by commenting, thank you.

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