What is a payment gateway and how it works?

A gateway is an intermediary that processes payments. Services of this type do not interact with funds, but immediately send them to acquiring banks.

Benefits of payment gateway integration

A single interface through several banks. In case of technical problems on the side of one of the banks, switching to others is available. This option also offers several options, just like aggregators.

The information on the gateways is encrypted for secure transactions.

In such services, the risks of moving funds are reduced, since gateways do not accumulate money, but transfer it to the bank.

For large companies, when paying for gateway services, there will be an advantage – the ability to influence the size of the commission.

The disadvantage is the lengthy registration procedure. Each method for the gateway must be coordinated with the final service and an agreement must be concluded with it. It will take longer to connect the gateway than to integrate with the aggregator. The commission for transactions is removed, which depends on the company’s turnover. Some gateways are also connected for a fee.

What is the structure of payment system integration?

  • Form. Placed on a website, service, online store. Here is all the information about the company.
  • Page. The payment system decides on its own what data to enter for the purchase to go through.
  • Status pages. The client goes automatically to one of them if the payment was made or failed.
  • Result page. It is located on the seller’s website, an online store. It is automatically called by the gateway bot.

The interface of payment gateway integration services

This networking standard allows a Web server to run any program and send data to the Web browser in the form of text or binary (graphic, sound) information.

Now, when a large number of purchases occur in online stores, there is a need to simplify and automate the process of accepting online transactions.

Especially for this, the so-called payment gateway integration services were developed, which are complexes of software and hardware, the development and support of which is carried out by the system.

The payment gateway consists of several mandatory parts, let’s consider them in order:

  1. A special form, that is, a page on the store’s website containing a mandatory HTML-document form, which includes a list of required parameters: store or seller ID, the purchase amount and comment. After entering all the necessary data, the user goes directly to the gateway.
  2. The page contains information about the purchase, which must be confirmed. Also, depending on the chosen system, there may be additional options. It is important to note that on this page there is still the option to refuse payment, it will be impossible to do this further. After agreeing and confirming the payment, the client is redirected to the next page.
  3. The page about the status contains information about the completion of the process, which can be successful or unsuccessful. In case of an unsuccessful outcome, the user will have access to information about its reasons.
  4. The page on which the payment result is displayed will appear in any case, regardless of the user’s actions. This page contains data on the past payment operation, and it is possible to make the required changes (if necessary).

Trends of Payment Gateway

Only the main components of payment gateways are described here. Each payment system creates its gateway, which may contain additional elements.

Since all payment services work with customer data and operate with huge amounts of electronic money, an appropriate level of security for a fintech development company is important. Payment technologies use the most advanced cybersecurity methods. When paying for goods, the buyer almost always needs to enter his personal information (name, phone number, etc.), which is why in most payment gateways all traffic transmitted to the gateway goes through the secure HTTPS protocol, which is safer and more reliable than regular HTTP. There are also quite a few protection mechanisms that are based on checks of IP addresses and other things.