We all think that e-commerce payment gateway is only used by the customers to pay for the goods and services which they but from the companies, but you will be delighted to know that this e-commerce payment gateway can also upgrade your business and if these gateway systems are not used correctly then it may also make negative impacts on your business.

Definition of Payment Gateway:-

The payment gateway is termed as the e-commerce app which incorporates safe internet connection for processing, verifying, accepting or denying the credit, debit or direct mode of payments on behalf of the e-commerce seller. To have the safest mode of payment between the buyer and the seller the e-commerce payment gateway uses the encrypted information such as the credit or debit card numbers.

All the online transactions can be done from anywhere from the world, so to check and confirm whether the right cardholder is placing the order and direct-payment-gateway paying certain otps are send to the registered number for the confirmation before the money is debited from the prospective buyer.

How does the payment gateway system work?

The best way to answer this question is to depict it through the following steps, you can understand the complicated working procedure of the payment gateways systems as described below:-

Step1: -A client places an order on any website by clicking the button called Buy Now or Submit Order.

Step2:-Encrypted information is sent by the website browser of the client to the seller's website server through the secure socket layer encryption.

Step3:-The following are steps to explain it adequately

a. All the information of the transaction is sent to the payment gateway by the e-commerce seller. This whole connection is even secure socket layer encrypted.

b. The e-commerce payment gateway then forwards the details about the transactions to the mode of the payment which is used by the e-commerce owner's bank.

c. then the transaction details is sent to the card company through the payment processor.

Step4:-the following is the subdivision of this point:-

a. The bank which issued that credit card receives all the information and replies back with the code to the web processor. This code depicts the approval, declination and all the information which is related to the payment.

b. Immediately as the code is forwarded to the payment gateway as it is received by the processor.

c. The e-commerce website gets the code from the payment gateway and sends it to the e-commerce website when it is considered as an acceptable response, and then the same information is shared with the e-commerce owner and the cardholder.

Step5:-Finally the e-commerce owner submits all the authorized information to the respective bank for the settlement by their authorized processor.

Once this process is completed the total amount is deposited in the account of the seller from the respective bank.

Importance of e-commerce payment gateway for your enterprise

1. Curtails fraud:-

If you have a safe and secure e-commerce payment gateway and your customers are not having any problems while paying online then they will be happy to buy from your website but if there is a single loophole with your payment gateway, and then you will not only lose the customer but also earn a bad name in the market.

2. Easy to make decisions:-

As the usage of the e-commerce payment gateway is beneficial for the payments by the buyers to the sellers, the data acquired from this payment app will help you know how many disputes and settlements are happenings on a daily basis. This piece of information is very essential as based on this you can take your decision which helps in expanding your business as well as catering to the other domains operations as well.

3. Impeccable chargeback management:-



Impeccable chargeback is managed by the e-commerce payment gateway; all the concerns are sorted by their fronts only so there is no path of confusion and disruption in the process. These services are beneficial for the business, as all the time is devoted towards the progression of the business.

4. Assist in expanding overseas:-

If your e-commerce payment gateway system is acceptable across the globe, then you can anytime expand your business abroad. You only have to check whether the residents abroad are comfortable and feel secure in using this payment mode. If yes then start planning and establish your business around the world.








We think E-Commerce Payment Gateway is only used by the customers to pay for the goods and services but you will be delighted to know that this payment gateway can also upgrade your online business.