Hi, my name is Melissa Blackburn, and
today we’ll be talking about how Payment Gateways work. Payment Gateways are the system through which an authorization is or isn’t reached. It basically consists of a third-party server that helps Authorizing Banks to approve or decline pending transactions. Payment Gateways allow websites and E-commerce companies to communicate with banks, and transfer any and all information to see if a transaction can be approved. Security is an integral component of all payment gateways, as the credit card numbers transferred between merchants and banks need to be protected from any fraudulent parties. Submitting an order is usually completed using HTTPS protocol, which securely communicates personal
information through the parties involved in the transaction. Many payment providers such as 2Checkout enable merchants with additional options when a cardholder purchases a service or product. Payment Gateways usually charge merchants and banks who use them a monthly fee, or percentage of the sales processed through this Gateway. For more information on payments and
E-commerce, please visit 2Checkout.com.