What is a payment gateway?
A gateway is a value added service provider that will, in exchange for fee (usually a percentage of your sales, and a number of associated fees), accept and process credit card transactions from you. Payment Gateways generally provide additional services beyond payment processing such as transaction logging, automatic settlement, and reporting as well as additional security and fraud prevention.
A payment gateway is a third-party company that connects your e-commerce software to your merchant account. This allows you to collect credit card, and in some cases electronic check, payments in real time from your online store. Do I need a payment gateway? While not required, it is generally recommended. By having a payment gateway, you can provide your customers with real-time feedback about the status of their payment. For example, if the credit card is declined, your customer is notified immediately. Additionally, a payment gateway greatly increases the automation of your online store, as you do not need to manually process payment transactions. How does a payment gateway work? When you set up your payment gateway, you will provide information regarding your merchant account to the gateway vendor. The vendor will then configure your gateway account to match up with your merchant account. Whenever UltraCart needs to process a payment, it connects to your gateway using the informati
A payment gateway is the bridge between your website and your merchant account. It is the online equivalent of the machines that retail merchants slide your credit card through. Your website shopping cart script interacts with your payment gateway in a few different ways. If you are doing real-time transactions, your script will send the credit card information your customers enter to the payment gateway, and the gateway will give either an authorization or a decline response. Then your shopping cart will tell the customer that their order went through or that their card was declined. The payment gateway stores those authorizations and once daily it will run a “batch” of all your orders. This turns each “authorization” into a “funds capture” and starts the process of getting that money from your customers credit card or bank account, through your merchant account, and deposited into your bank account. If you catch a transaction before it has been batched, you can void it, otherwise you
