Payment Gateway Solutions
Payment gateway technology can vary for online merchants and brick and mortar businesses. The payment gateway will be constructed differently for an online company versus a brick and mortar business however the transaction process is still the same.
Websites will require application programming interfaces (APIs) that plug into the online system through programming that enables their functionality. For a brick and mortar business, the company will require a point of sale terminal that connects electronically through either a phone line or internet connection.
The technologies for physical terminals used at brick and mortar merchants are constantly evolving. Terminals can accept contact and contact less cards along with standard magnetic strips. Terminals can be mobile for use in various locations. Terminals can also be stationary with added features built into the terminal system to display customer information.
All payment gateways serve as the first step in an electronic payment transaction. The payment gateway technology transmits a customer’s card information to the merchant acquiring bank. The merchant acquiring bank then facilitates the authorization of the transaction through communication with the processor and issuing bank.