A payment gateway is a service that authorizes credit card payments for e-businesses and online retailers. It allows online payments through various payment methods and serves as the equivalent of a physical point of sale terminal. The payment gateway workflow is inserted before the checkout process on a shopping website. It involves authenticating the transaction with the issuing and acquiring banks, transmitting payment details, and sending digital receipts to complete the payment. Payment gateways offer benefits like security since credit card details are not stored, but also charge fees for their services.

1. Payment
gateway

2. What is Payment Gateway?
A payment gateway is an e-commerce
application service provider service that
authorizes payments for e-businesses
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3. Payment Gateway
 A payment gateway is an e-commerce
application service provider service that authorizes
credit card 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.
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4. Bricks and clicks
 Bricks and clicks is a jargon term for a business
model by which a company integrates both offline
(bricks) and online (clicks) presences, sometimes
with the third extra flips
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5. Brick and mortar
 Brick and mortar in its simplest usage describes the
physical presence of a building(s) or other
structure.
 The term brick-and-mortar business is often used to
refer to a company that possesses buildings,
production facilities, or store for operations
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6. Web services
 A Web service is defined by the W3C as "a
software system designed to support interoperable
machine-to-machine interaction over a network”.
 For accessing every web service we need an
API(Application Program Interface) key.
 Web service is a platform independent.
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7. Payment Process
 A payment process is a transaction of money
between the users and merchant (owner of the
product).
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8. Accounts
 Business Account (user)
 Merchant Account (owner)
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9. Online Shopping Example
 The Payment Gateway Workflow should be
inserted before the checkout.
 After the confirm order page with the payment
gateway workflow be activated
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10. Flow of payment process
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11. Steps Involved in a Payment
Gateway Transaction
 Step 1 – Consumer visits a shopping website and selects
the goods or services and clicks on the “Buy” button. A
message is sent to the website regarding the
consumer’s desire to buy and make payment.
 Step 2 - The Web store’s server, after receiving the
message from the buyer, adds its digital certificate to
identify the mall. This message is now called a “Digital
Order” and also includes the consumer’s IP address
and transaction amount. The Digital Order is now sent
to the Payment Gateway over a secure network.
Security is ensured by data encryption.
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12. Steps Involved in a Payment
Gateway Transaction
 Step 3 - Based on the Digital Certificate, the
Payment Gateway authenticates the web store.
 Step 4 - The Payment Gateway offers various
payment options on a screen to the buyer.
 Step 5 - Buyer chooses the desired payment
option, which is transmitted via the secure link to
the Payment Gateway.
 Step 6 - The Payment Gateway sends the payment
details to the acquiring bank (in case of card
transactions) or seller’s bank (as termed for other
instruments).
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13. Steps Involved in a Payment
Gateway Transaction
 Step 7 - The acquiring bank sends the information to the
buyer’s issuing bank (in case of card transactions) or
buyer’s bank (as termed for other instruments) over a
secure link.
 Step 8 - Based on the credit limit and the payment
instrument’s validity, the issuing bank either accepts or
rejects the transaction. The confirmation/rejection
message is transmitted to the Payment Gateway
through the acquiring bank.
 Step 9 - The Payment Gateway then transmits digital
receipts to the shopping site as well as the buyer.
 Step 10 – The web store can ship the goods/services to
the buyer.
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14. Interaction with Other Payment
Systems
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15. Types of Payment Gateways
 PayPal (Global)
 Authorize. Net (US)
 VeriSign (Global)
 Link point (US)
 2Checkout (Global)
 World Pay (Global)
 Cyber Source (US)
 Protx (UK)
 EWay (AU)
 Moneris (CA)
 QuickBooks Merchant Services (US Only)
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16. Payment Gateways in India
 Transecute Pvt. Ltd.
 PaySeal (ICICI)
 Eliteral Payment Gateway
 Payment-Gateway-India.com
 Team VII Payment Gateway
 CitiBank
 HDFC
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17. Gateway advantages
 Gateways can provide many benefits, with its
main benefit being security.
 when using a payment gateway, the credit card
information is sent directly to the bank for
verification and therefore no credit card details
are stored.
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18. Gateway advantages
 Credit card validation and processing in real time
 Less fraud
 Money is normally deposited into your bank
account automatically
 Reports and refunds normally allowed via browser
by gateway company
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19. Gateway Disadvantages
 Every gateway company charges fees. Fees can
include some or all of the following:
 Fixed fee per month
 Percentage fee per amount spent
 A fixed fee per transaction
 In addition your own bank or the gateway's bank will
charge a merchant fee for the privilege of allowing
credit card purchases. This can range from 1-5% or
more.
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20. Payment Gateway Software
Requirements
 Windows Server 2003, 2008, or 2008 R2
 IIS 6.0, 7.0, or 7.5
 .NET Framework 3.5 SP1
 ASP.NET 2.0.x
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21. Payment Gateway Hardware
Requirements
 External Windows Server
 P4 w/ 2.1 GHZ processor minimum
 5 GB of free disk space
 1 GB of available memory
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22. Parties Involved
 Product/service manufacturers
 Banks – acquiring and issuing
 Payment Gateway infrastructure providers
 Providers of the software involved
 Hardware and networking vendors
 Maintenance personnel
 Delivery infrastructure
 Internet Service Providers
 The Government
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23. Choose the payment gateway
that gives customers the full Thali
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24. Transaction Enhancing Tools
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25. The Hidden Costs in a Cheap PG
 Bad risk management = monetary and
reputational loss
 Limited payment options = you lose real customers
… monetary loss as well
 Poor PG software and low end hardware and
people ware = downtime of PG = monetary loss
and lost customers
 Bad, unresponsive, non reachable support staff at
PG partner = you get ulcers handling irate
customers and from suffering business loss.
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26. Ground Realities for a new
merchant
 Over 50 payment options in India today … and
growing.
 That many systems to integrate, manage,
reconcile accounts and manage processes.
 There are huge challenges to running things
perfectly.
 There is a clear need for a specialist to handle this.
 How responsive is your PG partner to tackle these
challenges.
 How well connected are they to the key
stakeholders in the ecosystem such as banks, card
companies, etc.
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27. ANY QUESTION
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