What is Payment Gateway and How does It Work?

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What is Payment Gateway and How does It Work?

• Razorpay Best Payment Gateway

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What is a Payment gateway?
A Payment gateway is a tunnel that connects your
bank account to the platform where you need to
transfer your money. It is a software that
authorizes you to conduct an online transaction
through different payment modes like net banking,
credit card, debit card, UPI or the many online
wallets that are available these days.
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How does a Payment gateway work?

• Now that you have a basic understanding of what
  are payment gateways?, let us discuss how it
  works. A payment gateway focuses on securing the
  sensitive information given by the user
  throughout the process. It ensures security by
  encrypting data like card and bank details that
  have been provided by the user.

Using an online payment gateway, businesses can
accept payments through various payment modes.
One of these payment modes is through credit and
debit cards. Click here to read about
the lifecycle of an online card payment.
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How does a Payment gateway keep information
secure?

• A payment gateway ensures the security of the
  information you put in by encrypting the data.
  Now that you have a pretty good idea of what is
  payment gateway and how it works, let us look at
  a list of things that a PG does to keep your data
  safe
• First things first, the entire payment gateway
  transaction flow is carried out through an HTTPS
  web address. This is different from the HTTP as
  the S in the HTTPS stands for Secure. The
  transaction takes place through this same tunnel.
• As a result of the hash function, the system
  often uses a signed request from the merchant to
  validate the request of the transaction. This
  signed request is a secret word, which only the
  merchant and the payment gateway know.

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