A Payment Gateway is a payment facility for online businesses and traditional brick mortar stores to process Credit / Debit Card payments and FPX Internet Online Banking. A payment gateway is crucial for a business to accept payment worldwide, through internet or mobile apps.

A Payment Gateway is a third party that validates and authorises the payment transactions between the merchant ( business owner ) and its customers. Payment Gateway facilitates this secured transactions by transferring key information between the payment portals ( online store / shopping cart / mobile apps owned by business owners ) and the front end processor / bank. Any disputes on the payment or purchased goods and services can be verified through a payment gateway, which gives an ease of mind to both merchant and customers.

How Payment Gateway works?

Below is a step by step overview on how Payment Gateway works.

Related Party :

There are 4 parties.

1. The merchant ( business owner ) with payment portals ( online store / shopping cart / mobile apps owned by business owner )
2. The customer with Debit / Credit Card and Online Banking Account
3. The bank
4. The payment gateway

The Process :

1. Merchant ( business owner ) integrate their payment portals ( online store / shopping cart / mobile apps ) with payment gateway. Hence, their payment portals is now ready and able to receive payments for purchases.
2. A customer makes an order on the online store / shopping cart / mobile apps. This is either using the checkout button or by making a purchase using the payment form.
3. Via Payment Gateway, the purchasing data from the merchant site will be transferred to the routing / issuing bank or the 3D secure page for authentication.
4. Next, either the transaction is approved or declined ( depending on the customer bank account status ), the status of the purchasing data will be sent to the merchant to acknowledge.
5. The bank will then settle the money from the customer to the payment gateway, and payment gateway will settle the money to the merchant. The merchant can release the purchased item to the customer.