1. Redirect

It becomes a "redirect" when the gateway takes the customer to paypal or other business payment page to process the transaction in full. Simple for retailers. Small businesses can use redirect gateways to integrate the convenience and security of a major platform like paypal. However, this process also means less control over the merchant.

2. On-site checkout, off-site payment

Like Stripe's payment gateway, subscription payment gateway,the front-end checkout will take place on your website. payment processing happens through Stripe's backend. It also has the advantage of simplicity. However, you won't be able to control the user's entire experience through the payment network, which will keep you at the mercy of the quality of the separate network and its quirks

3. On-site payment

Onsite payments enables customers' billing and payment processing to be done entirely through your system. Larger companies tend to use it and will have more control and more responsibility. It's important to understand your options and responsibilities when you're processing payments on-site.

How payment gateways work

The payment gateway process follows six steps and only takes a few seconds.

1. A customer places an order on your online store and enters their payment information.

2. The payment gateway sends the encrypted information to the payment processor, which actually processes the transaction.

3. The processor routes the transaction data to the credit card association.

4. The processor sends an "approve" or "reject" response back to the payment gateway.

5. The transaction is authorized, and the issuing bank sends the authorization back to the parties in the company's payment processing system.

6. It takes 24 to 48 hours for the funds in your account to become available.

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Related Hot Topic

Describe the API payment gateway.

The purpose of a payment API, sometimes referred to as a payment gateway API or payment processing API, is to integrate a payment solution with another, already-existing application. For example, it might link a company's checkout process to the payment system.

Can I create a custom payment gateway?

You can always build your own Payment Gateway. Additionally, it allows you the option to integrate multiple Payment Service Providers and avoid vendor lock-in.

Is a subscription box successful?

The majority of subscription boxes have a profit margin of 40–60%, though this varies widely by business. If you provide one-time purchases or several cost tiers, this figure can be raised even more.

Is a license required for a payment gateway?

A financial service offered by an e-commerce application service provider is referred to as a Payment Gateway. However, a Payment Gateway License from the Reserve Bank of India is required in order to launch a Payment Gateway service in India.

By:Anastasia