Payment Gateway


A payment gateway is an e-commerce application service provider service that authorizes payments for e-businesses, online retailers, bricks and clicks, or traditional brick and mortar.[ It is the equivalent of a physical point of sale terminal located in most retail outlets. Payment gateways protect credit card details by encrypting sensitive information, such as credit card numbers, to ensure that information is passed securely between the customer and the merchant and also between merchant and the payment processor.

If you use a credit card to make online purchases, then chances are you have hesitated at least once before submitting your final order. After all, you have no idea how secure your credit card information is as it travels over the Internet. As a merchant, when you sell online it means you participate in an exchange with a buyer who is not physically present, you require a secure method through which to accept credit card information over the Internet, and you need fast and convenient online payment transacting.
A payment gateway will authenticate an online buyer and seller, enable real-time credit card processing online, and protect credit card information given over the Internet, by bridging a merchant’s online storefront with the financial institutions that authorize thetransactions.
Payment gateways can be implemented through two methods. As a merchant, you can either house the gateway on your server, which requires installation of software, or you can choose to implement the payment gateway on your payment processing company’s server i.e. financial institution.
Housing the payment gateway on your site requires you to have appropriate security measures in place to encrypt and protect customer information. If you implement a payment gateway separate from the rest of your shopping cart solution, all the components will require configuration to ensure they work properly together, which can require high level technical capabilities. The advantage of housing your own gateway is that customer information can be collected in your database, enabling you to better manage your customers and site.
If a payment processing company houses your payment gateway, then customer information will not be at your easy disposal. As well, since you do not gain access to customers’ credit card information, it is more difficult to track charge backs.
However, since the gateway is out of your hands, problems that occur are the responsibility of the payment gateway provider.
To accept any online payment through credit cards, debit cards or net banking, an e-commerce owner needs a merchant account with a bank. Now, setting up a merchant account with each and every bank is a tedious task for any e-commerce player and in most of the cases there is little or no support from banks in terms of customer service and customization.
Therefore, it becomes imperative for online businesses to opt for a payment aggregator, which connects the merchant’s website with the bank’s payment gateway and provides multiple payment options – like credit card, debit card, net banking and cash cards – to an online shopper enabling him/her to choose a convenient payment option. Also, payment gateway companies have tie ups with almost all nationalized and private banks which considerably reduces the merchant’s efforts to tie up with banks individually.
“In many cases, the onus of providing customer service, compliance certification (like PCI DSS) and data security lie on the shoulders of the payment gateway providers again reducing the running cost of the online merchant manifolds. This makes a payment gateway is an integral step in the value chain of e-commerce business, without which it’s a herculean task for any merchant to accept online payments,”
There are few other important features that payment gateway providers offer. “A payment aggregator who provides the highest conversion rates should be an obvious choice for start-ups. They should look for testimonials by other e-commerce players who are using a specific gateway as to how much have their conversion rates increased after going live with a particular gateway,”
Technically, a good payment gateway should offer a variety of ways to collect customer card details and process payments. For instance a great aggregator should provide multiple payment options like credit cards, net banking, debit cards, cash cards, etc. to an online shopper enabling him/her to choose a convenient payment option.


  1. Hi Sangmesh,If you are looking for the payment gateway for collecting the donation please feel free to contact the below mentioned detailAbhishek Aroraabhishek.arora@zaakpay.com7838996644

  2. sangmesh says:


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