The main role of a payment gateway is to authorize transfer of monetary fund between the buyers and the sellers. There are a number of critical functions that are performed by payment gateways in order to ensure safe and secure transactions for their users. Let’s have a look at some of them.
One of the most important features of payments gateways is of course encryption. It is this feature that mainly deals with the safety and security of information handled through the payments gateways. The web browser effectively encrypts all the data that is to be transferred from the web server of the sender to that of the vendor. The payment gateway sends all the transaction details and data to payment processor that is utilized by the acquiring bank on the vendor's side.
· When a credit or debit card is used for issuing a payment, it has to send through an authorization request that has to be either approved or denied by the server of the bank. All sensitive card information is carefully handled by the payment processor which they send such transactional data to the card association. It is then upon the bank to accept or reject such a transactional authorization request.
Once the authorization request has been sent and a response to that has been generated, the processor sends an authorization to the consumer and merchant to the specific payment gateway. After such a response has been generated by the gateway, it is transmitted to the interface or website so that the payment can be processed. The whole process is actually handled within a matter of a few seconds.
There are also a number of payment gateway functions that are meant to filter out frauds and enhance the security of the whole process. Some of these functions are listed below:
- · AVS checks
- · Geolocation
- · Delivery address verification
- · Identity morphing detection
- · Velocity pattern analysis
- · Computer finger print scanning methods and technology