How does a Payment Gateway Ease Payment Processing?

A payment gateway works as the solution to online payment processing. There are multiple crucial components to the complete online payment scenario. 

All internal financial institutions take on several steps in quick consecution to complete the payment processing. The Payment Gateway, the Payment Processor, the Acquirer, Consumer’s Bank, and the Card Schemes form the base to the complete process.

However, the question is, how does it make the process faster?

Technology has significantly reduced the time involved in the process.

1. The Payment Gateway allows the consumers to directly pay on the website for the goods or services they need.

2. The Payment Gateway takes the authorized transaction details and routes them to the Payment Processor.

3. At times of Card Processing, The Payment Processor then quickly checks with the Card Schemes, Consumer’s Bank Account and returns the payment status to the payment gateway.

4. At the same time, if the Transaction is successful, the payment is transferred to the designated acquirer through an encrypted channel.

5. Lastly, the Payment Gateway Reports to the Consumer and Merchant about the end result of the payment.

The Payment Gateway reduces the initializing time, time of reporting, and exchanging information. Therefore, it enhances a merchant’s online payment processing power and streamlines the process for a better payment experience to the consumers.