| When you own an online business which sells | | | | Some processors, however, also function as the |
| items and services, it is very important for you | | | | issuing bank and will immediately provide a |
| to provide a reliable and safe area for the | | | | response of either approved or declined to the |
| transactions that you are going to have with a | | | | payment gateway. Or else, the card association |
| potential customer. Using a payment gateway is | | | | then routes the transaction details to the correct |
| an asset to your online business because it will be | | | | issuing bank of the card. The bank that issued the |
| the one to facilitate the customer's payment to | | | | credit card then receives an authorization request |
| the eCommerce merchant account. And for you | | | | and sends a response in the same process with a |
| to pick the right payment gateway, you must | | | | response code. |
| first understand how the process works. | | | | This response code is the determining factor of |
| When a customer orders online and presses the | | | | the fate of the payment on whether it will be |
| submit button or enters his card details, this | | | | approved or declined for insufficient funds or if |
| information is then encrypted by the person's | | | | the link to the bank is temporarily unavailable. |
| web browser and then sent from there to the | | | | When the processor receives the reply of the |
| merchant's web server. This process is done via | | | | issuing bank, it then sends the response to the |
| SSL or Secure Socket Layer Encryption. The | | | | payment gateway which now forwards it to the |
| merchant then forwards the details of the | | | | website where a relevant response is relayed to |
| transaction to the payment gateway. The | | | | the merchant and its customer. Lastly, if a |
| information carried by such transaction will be | | | | purchase is approved, it will be the merchant's job |
| forwarded to the processor used by the | | | | to submit all approved authorizations to their |
| merchant's acquiring bank after which the | | | | acquiring bank for settlement. Then the acquiring |
| processor forwards the details of the said | | | | bank will deposit all the total approved funds to |
| transaction to the card association. | | | | the merchant's account. |