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What is an Internet Payment Gateway and how does it work?

What is an Internet Payment Gateway and how does it work - binarylabs.lk
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What is an Internet Payment Gateway (IPG)

A payment gateway is what keeps the payments ecosystem running smoothly by allowing consumers and businesses to make online payments. You don’t need to be a payment gateway expert if you’re an online merchant, but it’s worth learning the fundamentals of how an online payment flows from your customer to your bank account.

How a Payment Gateway Works?

When a customer pays for goods or services, the gateway sends the encrypted payment details to the payment processor. The gateway’s data communication is always encrypted. The payment processor alerts the card-issuing bank, and the transaction is either approved or rejected. The payment processor then informs the payment gateway of the authorization or decline. The approval or decline is returned to the person who initiated the transaction – either the merchant or the customer. If the transaction is approved, funds are deducted from the customer’s account and transferred to the merchant’s bank account.

How can a payment gateway benefit your business?

Convenience
  • When you integrate with a payment gateway, your customers can make purchases whenever they want, whether you’re in the store or not. Allowing your customers to shop at their leisure benefits both them and you.
Faster payments
  • As a business owner, you understand how difficult it is to get paid at all. Instead of going through the hassle of agreeing to pay on a certain day and then forgetting to do so, many customers prefer to pay right away and be done with it. Payment gateways enable them to do so, creating a win-win situation for you and your customers.
Better security
  • The payment gateway receives the customer’s credit card information in a secure manner. This means that only the customer and their issuing bank will have access to their data.
  • Every payment gateway must be PCI DSS compliant, which means that they must adhere to specific security standards to ensure that your customers’ card information is processed securely.

How to integrate payment gateway to your website?

You don’t need to worry about that. We are happy to do it for you. click here to contact us.

Top payment gateways available in Sri Lanka

  1. PayHere
  2. Sampath Bank payment gateway
  3. HNB payment gateway
  4. WEBXPAY Payment Gateway
  5. Onepay Payment Gateway
  6. Commercial Bank payment gateway