If you want to get a credit card on your site or on a mobile device, you can ask yourself if you want a merchant account to process those payments or if you can just get one with a payment gateway. The short answer is: you need a merchant account. You can start online payment processing by searching and getting tips from the internet.
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The simplest way for me to describe a payment gateway would be to specify that it is similar to a car that receives your payment online from a customer to a merchant account provider for processing. Using a merchant account is similar to obtaining a permit that allows you to push the vehicle.
You want to take credit card payments over the Internet, but you do not have an automobile (payment gateway), even the ability to store it in garages (bank accounts) and you cannot operate a vehicle.
You can get a permit (merchant account) without a vehicle (payment gateway), although you cannot drive a car without a permit. At the end of the day, you still need a garage (bank accounts) to save all your belongings, whether you are processing online or through the terminal. It's a ridiculous simile, but it will just help to understand how everything works together.
The payment gateway requires your customer's payment information and communicates it on a chip. It then gives the accepted or rejected response from the chip to you. Chip is the charge that communicates with the banks issuing the charge to get that answer.
Following Is a step-by-step Summary of the entire online processing encounter:
- The client enters their payment info on the web and clicks” submit"
- Your institution's web server or server rigorously receives this payment advice
- Throughout the payment gateway, the payment data is sent to your chip
- The chip then communicates with one of the significant card programs (Visa, MasterCard, etc.) to ascertain if or not a client's payment is denied or approved
- The system problems the approved/denied reply, communication that answers back to the chip
- Throughout the payment gateway, the chip forwards the reply back to you, the retailer.